We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
The MSE Forum Team would like to wish you all a very Happy New Year. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
Offset %lower than savings rate
Bill2468
Posts: 2 Newbie
Just wondering if I'm missing something but if my offset mortgage rate is lower than that offered by a savings account should I transfer my offset cash to that savings account and make sure I collect the interest?
0
Comments
-
Also consider how long it takes to transfer the savings and how quickly you can access them. Other things being equal it does make sense.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
-
@bill2468 You're thinking on the right track. But do factor in potential tax if the amount is large enough. For a few thousand pounds it shouldn't come into play but if you're talking about tens of thousands of pounds then interest from the savings account may well incur tax.Bill2468 said:Just wondering if I'm missing something but if my offset mortgage rate is lower than that offered by a savings account should I transfer my offset cash to that savings account and make sure I collect the interest?I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
2 -
Ah yes, the interest would then be liable for tax if over £1,000. Thank you, hadn't thought of that!!K_S said:
@bill2468 You're thinking on the right track. But do factor in potential tax if the amount is large enough. For a few thousand pounds it shouldn't come into play but if you're talking about tens of thousands of pounds then interest from the savings account may well incur tax.Bill2468 said:Just wondering if I'm missing something but if my offset mortgage rate is lower than that offered by a savings account should I transfer my offset cash to that savings account and make sure I collect the interest?0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.8K Spending & Discounts
- 246.1K Work, Benefits & Business
- 602.2K Mortgages, Homes & Bills
- 177.8K Life & Family
- 260K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards