Year interest is applicable to having updated an account to a new issue number

auser99
auser99 Forumite Posts: 170
100 Posts Name Dropper
Forumite
edited 21 July at 5:07PM in Savings & investments
I opened a fixed account at a 5.2% rate, and within the cooling off period moved it another 3 times to now sit as a 5.92% rate. Therefore, the amount in the account isn't a smooth rounded number like £1,000, but instead say £1,011.30 for example.

The account matures in the 2024/25 year, so the main interest is without doubt payable then, but I just wondered whether that odd £11.30 in my example is the same, or for some reason does it count in 2023/24?


Similar increased rates scenario with an Easy access account that pays monthly seems to be no doubt at all. Simply counts in 2023/24, as per the monthly interest until End of March 2024.

Just trying to stay on track of all of this accurately, as they all build up.

Comments

  • njm123
    njm123 Forumite Posts: 310
    Part of the Furniture 100 Posts Name Dropper
    Forumite
    The interest will count in the year it's paid out or credited to your account.

    So in your example

    11.30 is counted and potentially taxable in 23/24 as that's interest accrued when you were shuffling the money about.
       
    The interest on the 1011.30 @ 5.92% will be counted and potentially taxable in 2024/25.
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