Halifax Fixed Saver

bobblebob

I currently have around 40k sitting in a few accounts. 10k in a savings account and 30k in an ISA. Both have rubbish interest rates.

I was looking at https://www.halifax.co.uk/savings/fixed-term/fixed-saver.html account and fixing say 30k of my savings for a year, as would generate just over 1k interest. Couple of questions

1) Rather than opening a new account and have 2 savings, would the branch/phone support be able to transfer my current savings account over to the fixed saver?

2)Once opened was thinking of immediately transferring 30k into it to earn the interest straight away. Is that a good idea?

3)I understand you get 1k interest allowance. I will be over this slightly so do i have to tell HMRC or will this be done automatically?

Bridlington1

In answer to your first question:I doubt it. Halifax would most likely need to open the new account and then transfer the money over from your other savings accounts into it before shutting them.

In answer to your second question: Halifax's fixed saver only pays 3.4% for a year, so I wouldn't open this account if I were you. There are quite a few 1Y fixes paying over 4%. See:
https://moneyfacts.co.uk/savings-accounts/1-year-fixed-rate-bonds/

There are also several 1Y fixed rate ISAs paying over 3.4%. See:
https://moneyfacts.co.uk/isa/1-year-fixed-rate-isas/?quick-links-first=false

In answer to your third question: How much interest you can earn tax free depends on your income. For a good guide see:
https://www.moneysavingexpert.com/savings/tax-free-savings/

bobblebob

Thanks for the info. So seems any tax over your PSA is automatically taken by a change of tax code

wiseonesomeofthetime

bobblebob said:

Thanks for the info. So seems any tax over your PSA is automatically taken by a change of tax code

That is correct.