460k for 5 months!

AmityNeon

Veteransaver said:

If your wife isn't going to work in the 2024-2025 tax year,  if you put most of the savings in accounts in her name that won't pay out until 2024-2025, so an annually paying account basically, that would work.
You could work it though to try and max out the £1000 limit for this year.

The monthly interest contributes towards rent, but with careful allocation between monthly/annual interest accounts, tax liability on interest could be reduced to zero.

eskbanker

Andrew68 said:
...great to know we only need one bank account for 6 months (major life event!)...

There is a caveat that you may wish to consider, regarding speed of access to funds:

https://forums.moneysavingexpert.com/discussion/comment/80243356/#Comment_80243356

ColdIron

AmityNeon said:

Veteransaver said:

If your wife isn't going to work in the 2024-2025 tax year,  if you put most of the savings in accounts in her name that won't pay out until 2024-2025, so an annually paying account basically, that would work.
You could work it though to try and max out the £1000 limit for this year.

The monthly interest contributes towards rent, but with careful allocation between monthly/annual interest accounts, tax liability on interest could be reduced to zero.

Or you could just pay rent from the capital, they are easy access accounts after all

xylophone

For utter simplicity (but less interest), you could put the lot into NS &I  Income Bonds in your wife's sole name.

https://www.nsandi.com/products/income-bonds

AmityNeon

ColdIron said:

AmityNeon said:

Veteransaver said:

If your wife isn't going to work in the 2024-2025 tax year,  if you put most of the savings in accounts in her name that won't pay out until 2024-2025, so an annually paying account basically, that would work.
You could work it though to try and max out the £1000 limit for this year.

The monthly interest contributes towards rent, but with careful allocation between monthly/annual interest accounts, tax liability on interest could be reduced to zero.

Or you could just pay rent from the capital, they are easy access accounts after all

True, there's actually no need to be careful unless the wife foresees earnings income in the next tax year. Aside from using any remaining ISA allowances, putting the entire £460K into Ulster Bank's Loyalty Saver under the wife's sole name is the simplest option (barring opening/operational complications) and maximises interest at 5.2% gross (six months), unless notice accounts are considered.

Andrew68

AmityNeon said:

ColdIron said:

AmityNeon said:

Veteransaver said:

If your wife isn't going to work in the 2024-2025 tax year,  if you put most of the savings in accounts in her name that won't pay out until 2024-2025, so an annually paying account basically, that would work.
You could work it though to try and max out the £1000 limit for this year.

The monthly interest contributes towards rent, but with careful allocation between monthly/annual interest accounts, tax liability on interest could be reduced to zero.

Or you could just pay rent from the capital, they are easy access accounts after all

True, there's actually no need to be careful unless the wife foresees earnings income in the next tax year. Aside from using any remaining ISA allowances, putting the entire £460K into Ulster Bank's Loyalty Saver under the wife's sole name is the simplest option (barring opening/operational complications) and maximises interest at 5.2% gross (six months), unless notice accounts are considered.

Folks, you’ve been so incredibly helpful, thank you so much. 

Think I’ll go with the Ulster bank for the whole amount. 

With regard to the £420.80 tax my wife has paid for this tax year, is it correct that; if she doesn’t start a job before the new tax year (which she definitely isn’t and might not bother getting a job at all) will HMRC automatically send her back the tax after 6th April or do we have to contact them and point this out to them ? 

Dazed_and_C0nfused

Andrew68 said:

AmityNeon said:

ColdIron said:

AmityNeon said:

Veteransaver said:

If your wife isn't going to work in the 2024-2025 tax year,  if you put most of the savings in accounts in her name that won't pay out until 2024-2025, so an annually paying account basically, that would work.
You could work it though to try and max out the £1000 limit for this year.

The monthly interest contributes towards rent, but with careful allocation between monthly/annual interest accounts, tax liability on interest could be reduced to zero.

Or you could just pay rent from the capital, they are easy access accounts after all

True, there's actually no need to be careful unless the wife foresees earnings income in the next tax year. Aside from using any remaining ISA allowances, putting the entire £460K into Ulster Bank's Loyalty Saver under the wife's sole name is the simplest option (barring opening/operational complications) and maximises interest at 5.2% gross (six months), unless notice accounts are considered.

Folks, you’ve been so incredibly helpful, thank you so much. 

Think I’ll go with the Ulster bank for the whole amount. 

With regard to the £420.80 tax my wife has paid for this tax year, is it correct that; if she doesn’t start a job before the new tax year (which she definitely isn’t and might not bother getting a job at all) will HMRC automatically send her back the tax after 6th April or do we have to contact them and point this out to them ? 

Assuming she doesn't meet the criteria for Self Assessment for 2023-24 then yes, any overpaid tax will be refunded later this summer.

https://www.gov.uk/tax-overpayments-and-underpayments

Albermarle

Andrew68 said:

AmityNeon said:

ColdIron said:

AmityNeon said:

Veteransaver said:

If your wife isn't going to work in the 2024-2025 tax year,  if you put most of the savings in accounts in her name that won't pay out until 2024-2025, so an annually paying account basically, that would work.
You could work it though to try and max out the £1000 limit for this year.

The monthly interest contributes towards rent, but with careful allocation between monthly/annual interest accounts, tax liability on interest could be reduced to zero.

Or you could just pay rent from the capital, they are easy access accounts after all

True, there's actually no need to be careful unless the wife foresees earnings income in the next tax year. Aside from using any remaining ISA allowances, putting the entire £460K into Ulster Bank's Loyalty Saver under the wife's sole name is the simplest option (barring opening/operational complications) and maximises interest at 5.2% gross (six months), unless notice accounts are considered.

Folks, you’ve been so incredibly helpful, thank you so much. 

Think I’ll go with the Ulster bank for the whole amount. 

With regard to the £420.80 tax my wife has paid for this tax year, is it correct that; if she doesn’t start a job before the new tax year (which she definitely isn’t and might not bother getting a job at all) will HMRC automatically send her back the tax after 6th April or do we have to contact them and point this out to them ? 

We get a lot of posters complaining about banks, savings providers, pension providers and it is clear any institution can have problems from time to time with IT, call centre getting too busy etc.
However some names crop up more than others and I have to say Ulster bank has mixed reviews.
Ulster Bank Savings Account — MoneySavingExpert Forum

Andrew68

Folks, update, monies in the account and earning interest; what I don’t understand is for 5 months we will earn interest but but AER of gross interest ?  Gross is 5.1% and 5.22% AER : I don’t understand what this means and ultimately which interest rate will I get of £421k for 5 months ? 

ColdIron

Gross is the rate that you are paid (after a year). AER is the rate that you will achieve (after a year) if you left the monthly interest (the gross bit) in the account to compound. You will get 5/12ths of either

https://www.moneysavingexpert.com/banking/interest-rates