Savings accounts

ogier8

I am luckily in a fortunate position of having £28,000 in savings. I would like to save £25,000 in a one year fixed rate savings account but with the interest rates as they are I will have to pay tax on the interest 

If my wife opened such an account and put £20,000 in it after I transferred it to her and I open another fixed rate account in my name for the remaining £5,000, is that legal?

I’m a 20% taxpayer 

Albermarle

You can give your money to who you like, and they can do what they want with it.

As it is a spouse there are not even any inheritance tax implications.

The only issue is that if the savings are in her name, they are legally hers.

LenMann

I opened a Nationwide instant access account with the restriction of x3 withdrawals. However, it's impossible to use it as advertised. I needed a temporary home for a few hundred thousand due to selling one house and renting for a while. I needed to withdraw £200k but was unable to do this as one transaction because the limit is £100k a day plus you have to go to a branch. As I am disabled I chose to withdraw on-line. In this case I was limited to £10k at a time. I phoned Nationwide but this was the only way. So I made x20 withdrawals which resulted in exceeding my x3 limit and losing my interest rate. I phoned and suggested they allowed the 20 withdrawals in one day to count as one. But no, they just kept quoting the terms and conditions at me. They suggested closing the account but this is not possible with more than £100k in it. You have to whittle it down £10k at a time first. 
This account takes up to £5m. So if you were fortunate enough to invest that amount, how could you ever get the money out and benefit from the advertised interest rate? Nationwide misrepresents what this account can provides. It works if you made a small investment but then why allow £5m investments?

wmb194

LenMann said:

I opened a Nationwide instant access account with the restriction of x3 withdrawals. However, it's impossible to use it as advertised. I needed a temporary home for a few hundred thousand due to selling one house and renting for a while. I needed to withdraw £200k but was unable to do this as one transaction because the limit is £100k a day plus you have to go to a branch. As I am disabled I chose to withdraw on-line. In this case I was limited to £10k at a time. I phoned Nationwide but this was the only way. So I made x20 withdrawals which resulted in exceeding my x3 limit and losing my interest rate. I phoned and suggested they allowed the 20 withdrawals in one day to count as one. But no, they just kept quoting the terms and conditions at me. They suggested closing the account but this is not possible with more than £100k in it. You have to whittle it down £10k at a time first. 
This account takes up to £5m. So if you were fortunate enough to invest that amount, how could you ever get the money out and benefit from the advertised interest rate? Nationwide misrepresents what this account can provides. It works if you made a small investment but then why allow £5m investments?

You should have started your own thread but why couldn't you have made a Chaps payment?

"To send over £10,000 in one payment, you’ll need to use the CHAPS service."

https://www.nationwide.co.uk/help/payments/how-to-make-a-large-payment/

lohr500

@ogier8
Have you put any cash into an ISA for this tax year (2022/23)? If not you could put £20k into a 1 year fixed cash ISA. The rates are slightly lower than a regular 1 year fixed saving, but no worries over taxation liability should your wife's tax situation change in the future.
Or another option could be to take your chance with Premium Bonds which are also tax free.

noh

LenMann said:

I opened a Nationwide instant access account with the restriction of x3 withdrawals. However, it's impossible to use it as advertised. I needed a temporary home for a few hundred thousand due to selling one house and renting for a while. I needed to withdraw £200k but was unable to do this as one transaction because the limit is £100k a day plus you have to go to a branch. As I am disabled I chose to withdraw on-line. In this case I was limited to £10k at a time. I phoned Nationwide but this was the only way. So I made x20 withdrawals which resulted in exceeding my x3 limit and losing my interest rate. I phoned and suggested they allowed the 20 withdrawals in one day to count as one. But no, they just kept quoting the terms and conditions at me. They suggested closing the account but this is not possible with more than £100k in it. You have to whittle it down £10k at a time first. 
This account takes up to £5m. So if you were fortunate enough to invest that amount, how could you ever get the money out and benefit from the advertised interest rate? Nationwide misrepresents what this account can provides. It works if you made a small investment but then why allow £5m investments?

You move the money from the limited access account to your current account with Nationwide. Internal transfers have a limit of £5m.
From your current account you then move the money in £10k lumps to your external account or as suggested above in one go using CHAPS.