Advice (Sorted)

Zuzi

You have 7 days to fund the Atom fixed saver, so you can deposit money in several lots. The minimum first deposit is 50GBP if you want to make a "test" payment with a brand new payee, but they participate in Confirmation of Payee so you would see if you were sending the money to the incorrect account.

Some will probably say that if you are planning to save the full 85K, ask for the monthly interest to be paid out into a different account (due to maxing out the FSCS protection). I have almost 85K with Atom - although in multiple accounts of various fix lengths - and I love them, I am glad they have good rates at the moment but I find everything so easy and user-friendly and I would stay with them even at lower rates, I think.

Bigwheels1111

First NEVER put 85K into an account paying Interest.

At 6.05% I worked it out at £5142.50, that would be at risk as FSCS only covers 85K.

How moch do you earn, £17570 or more. If less you could earn more tax free.

If you put 140k into 2 savings pots you could get,

Say

Atom            80k at 6.05% £ 4840.00

Gatehouse   60k at 6.05% £ 3600.00

Total                                   £ 8440.00 - £1488.00 = £ 6952.00 after PSA + tax.

Or stick 20k in an ISA

I dont do premium bonds, so cant comment.

xylophone

How does the tax thing work have you any advice on that please?

https://www.gov.uk/apply-tax-free-interest-on-savings

MX5huggy

With the Premium Bonds they need to be invested for a full calendar month before they go in the draw and are eligible for prizes. This means you want to buy them at the end of the month, which might be working out just perfect. Open the account now (if you don’t already have one) so you can fund it over the weekend using your debit card (I think HSBC have a £25k limit of Debit card transactions), you would be in the September Draw. On the other hand if you don’t want to rush then wait until the end of August to buy so you’re in the October draw. putting the money in best easy access savings account for the month. 

Zuzi

For tips on tax see what @Bigwheels1111 wrote above, or someone else with more knowledge might advise.

I think you are only required to take action (self-assessment) from annual interest >10,000 pounds, everything else should be done automatically via your PAYE code. I am a 40% rate payer myself although this year I want to get back to 20% so I am getting my interest paid out monthly, to make sure I correctly track my total taxable income, and I am reducing my net salary by adding to my pension via salary sacrifice. 

If you had money in ISA / premium bonds, you don't have to worry about interest or win from those since they are tax-free.

Albermarle

I think you are only required to take action (self-assessment) from annual interest >10,000 pounds, everything else should be done automatically via your PAYE code

Correct, if you are not filling in a self assessment tax return for other reason, there is no need to fill one in for savings interest, unless it is >£10K pa .

Just be aware that it might be some time after the tax year ends before HMRC will do the calculation and adjust your tax code.