Interest On Multi Year Fixed Term Savings Accounts

norm27

Hello. This might be a stupid question and I apologise if so. 

My question is - are there such things as multi year fixed term savings accounts that add interest only on maturity and not in any intervening years?

Such accounts would help me spread my savings interest across the years and reduce my tax liability in relation to the annual £1000 interest threshold.

I do realise that one has to pay ones dues to the taxman but nevertheless as ageing widower I'd like to maximise my savings for the benefit of my children.

Thankyou.

friolento

Unusual but not impossible to find, I would say. The one I know of which only pays upon maturity is the NS&I Guaranteed Growth Bond. You get better interest elsewhere though.

Have you exhausted your ISA limit for the year?

If you are saving for the benefit of your children, how about gifting them some money now?

Bigwheels1111

Not hard to find at all took me 30 seconds.

https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/

Select Rate order, Full search top right.

Box opens, left side top, click On Maturity, Revise search, bottom left.

Now select how many years at the top, then rate order again.

Pick the one you want.

Look at view further detains on right for more info on the one you pick.

propertyrental

Might this be the difference between fixed term savings accounts and fixed term bonds (not to be confused with investment bonds)?

Veteransaver

Yes quite a few pay at maturity, or you.can opt to.
It's not usually worth doing though as the interest is taxable in the year you get it. So getting 5 years worth of interest means you will likely exceed the tax free savings allowance.
Only real reason to do it would be if you are a high rate taxpayer now and want to save the interest until you are a basic rate taxpayer, Eg you've retired.

norm27

Thankyou for your replies on this, the information is appreciated. I had looked on the internet but clearly not enough.

eskbanker

propertyrental said:

Might this be the difference between fixed term savings accounts and fixed term bonds (not to be confused with investment bonds)?

Seems unlikely - there isn't any difference between fixed term savings accounts and fixed term bonds (not to be confused with investment bonds), both are synonymous terms for the same thing!

Hoenir

With NSI Green Bonds the interest is paid after 3 years.