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Interest Question On Longer Term Fixed

Trigga7 · 2022-11-06 09:42:08

Regarding a 5 year fixed savings account which I am looking to lock into, does the interest get paid at the end of the 5 years as one lump sum on maturity or will it get paid after every 12 month period? This is important to me as the amount I have will fall below the £1000 yearly tax allowance if paid out yearly but will…

Comments

Ocelot Posts: 680 Forumite

14 November 2022 at 11:03AM

wmb194 said:

Ocelot said:

All of my fixed rate accounts get 'reported' to the HMRC each year, and I have to pay tax on them even though I don't get to see the interest until the end of the term.

At the time of application were you given the *option* to have the interest paid away every month or year, though? If so, it's correct to report the interest annually.

I can't remember, but I added the interest to the sum rather than having it paid away.

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