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allegro120

flaneurs_lobster said:

Bobblehat said:

Gatehouse ERG and EAA ...

When the Gatehouse ERG account drops to 4.65%/4.75% tomorrow, which is the same rate as the Gatehouse EAA account, can anyone see any possible reason to keep the EAA open as well as the ERG?

May not apply to many but, the ERG has a max deposit of £1M, the EAA is a mere £250k.

You might need both.

I wouldn't recommend going over £85k per institution, but for those with £M+ of spare cash an extra £250k at this rate could be a bonus

Bobblehat

allegro120 said:

Bobblehat said:

Gatehouse ERG and EAA ...

When the Gatehouse ERG account drops to 4.65%/4.75% tomorrow, which is the same rate as the Gatehouse EAA account, can anyone see any possible reason to keep the EAA open as well as the ERG?

I keep both.  No particular reason. Hope you don't mind me reversing this question - can anyone see any possible reason to close the old EAA? 

Reverse the question .... no problem! Glad to receive any considered opinion ...  as every day is a learning day! Just reviewing some dormant accounts (not just Gatehouse) to see if there is any mileage in simplifying!

Born2Save_3

Does anyone know of any recent rate reduction notices on the Cahoot Sunny Day Saver Issue 3 ?

allegro120

Bobblehat said:

allegro120 said:

Bobblehat said:

Gatehouse ERG and EAA ...

When the Gatehouse ERG account drops to 4.65%/4.75% tomorrow, which is the same rate as the Gatehouse EAA account, can anyone see any possible reason to keep the EAA open as well as the ERG?

I keep both.  No particular reason. Hope you don't mind me reversing this question - can anyone see any possible reason to close the old EAA? 

Reverse the question .... no problem! Glad to receive any considered opinion ...  as every day is a learning day! Just reviewing some dormant accounts (not just Gatehouse) to see if there is any mileage in simplifying!

I know what you mean. I have a very large portfolio of dormant accounts and scrolling through them on your app can be annoying. I used to trim them, some are easy to close, some are not.... eventually I gave up, just let them be as long as they don't require any funding.  I don't include them in my spreadsheet, it is already too lengthy without them

Bobblehat

allegro120 said:

I know what you mean. I have a very large portfolio of dormant accounts and scrolling through them on your app can be annoying. I used to trim them, some are easy to close, some are not.... eventually I gave up, just let them be as long as they don't require any funding.  I don't include them in my spreadsheet, it is already too lengthy without them

Do you have any problems with HMRC assuming some of your dormant accounts are earning similar amounts to previous years when they weren't dormant and grabbing excess tax on interest? 

I suspect that it's happening to me when they started issuing 'K' codes on my modest company pensions. I find it's quite difficult to work out if they are taxing me correctly  .... or not!

allegro120

Bobblehat said:

allegro120 said:

I know what you mean. I have a very large portfolio of dormant accounts and scrolling through them on your app can be annoying. I used to trim them, some are easy to close, some are not.... eventually I gave up, just let them be as long as they don't require any funding.  I don't include them in my spreadsheet, it is already too lengthy without them

Do you have any problems with HMRC assuming some of your dormant accounts are earning similar amounts to previous years when they weren't dormant and grabbing excess tax on interest? 

I suspect that it's happening to me when they started issuing 'K' codes on my modest company pensions. I find it's quite difficult to work out if they are taxing me correctly  .... or not!

I'm not sure.  I've never had 'K' codes.

flobbalobbalob

Bobblehat said:

allegro120 said:

I know what you mean. I have a very large portfolio of dormant accounts and scrolling through them on your app can be annoying. I used to trim them, some are easy to close, some are not.... eventually I gave up, just let them be as long as they don't require any funding.  I don't include them in my spreadsheet, it is already too lengthy without them

Do you have any problems with HMRC assuming some of your dormant accounts are earning similar amounts to previous years when they weren't dormant and grabbing excess tax on interest? 

I suspect that it's happening to me when they started issuing 'K' codes on my modest company pensions. I find it's quite difficult to work out if they are taxing me correctly  .... or not!

HMRC estimate this years interest on last years data from the savings accounts. It will correct itself each year in arrears so to speak. As long as your savings interest in total doesn't change by a great amount it doesn't really make much difference which account(s) your money is in as it balances out.

Yorkshire_Pud

Bobblehat said:

allegro120 said:

I know what you mean. I have a very large portfolio of dormant accounts and scrolling through them on your app can be annoying. I used to trim them, some are easy to close, some are not.... eventually I gave up, just let them be as long as they don't require any funding.  I don't include them in my spreadsheet, it is already too lengthy without them

Do you have any problems with HMRC assuming some of your dormant accounts are earning similar amounts to previous years when they weren't dormant and grabbing excess tax on interest? 

I suspect that it's happening to me when they started issuing 'K' codes on my modest company pensions. I find it's quite difficult to work out if they are taxing me correctly  .... or not!

It’s taken me a while to get much sense about how the tax system works with regard to interest. HMRC don’t assume interest earnt on dormant accounts, they get the actual interest amounts on any accounts held at the end of each tax year and make a final tax liability, in my case this week for 2023/24. I owe them because the low interest rates of 2022/23 that gave them the estimated tax amount for 23/24 was not sufficient, this will have to be paid by me as either a lump sum or taken from income over the 2025/26 tax year.

To confuse the issue a few weeks ago I got a new revised tax code with a K for the current tax year which will increase tax paid  for the remaining three months of this year. The reason for the increase which is still only an estimate is again the final tax reckoning for 23/24!

So 2023/24 is done and dusted as a final amount although I haven’t checked the interest myself as I don’t keep a record properly.

I believe that once interest received in 2024/25 is sent by all the banks I have interest bearing accounts with, after April 6th this year I will again get a revision when the ‘results are in’ about this time next year as this years revision is based on 23/24.

Basically you never quite know where you stand since interest started being paid gross. It’s a game of catch up. As interest received  rose rapidly since 2022 and especially during 2024/25 I expect to have to pay more than the temporary revision suggests. All I can do is make a guesstimate of tax due and try and make sure it will be there in January 2026 to pay it as a lump sum or face 12 months from April 2026 of significantly reduced monthly income after tax made worse by the fact that as interest rates are now reducing I will be paying tax in 2026/27 estimated based on the higher interest received in 2024/25! Then maybe due a rebate after final revision based on actual interest received in year 24/25 calculated in January. This last bit may be wrong as my brain is getting stewed.

Simples eh!!? 

Cobbler_tone

jaypers said:

flaneurs_lobster said:

poppystar said:

I’m moving most savings from Chase but still want to put in the monthly amount to get cash back. Is there anything to stop me from putting in that amount each month then withdrawing it during the month less whatever I’m likely to spend? It feels wrong. What are others doing? 

Absolutely nothing wrong, £1500 in, then all but a couple of day's spend straight out every 1st.

I pay £1500 in and take it out again same day. Triggers cashback qualification no problem. 

What money are you using to spend on to get the cash back, assume you must be transferring money back over to spend?
I absolutely love Chase and disappointed that they are now 3.5%. I get my wages paid in and tend to move main savings out to RS's and keep my spending money for the month in the 3.5% account and keep a small amount in the cashback account to do my spending.
The trouble with my Gatehouse account is that it can take half a day to get money if/when I need it, so minimise the back/forth from that account to chase pennies. If there is some left over after the RS's and what I anticipate spending monthly I flick it over to Gatehouse.

Rheumatoid

Cobbler_tone said:

jaypers said:

flaneurs_lobster said:

poppystar said:

I’m moving most savings from Chase but still want to put in the monthly amount to get cash back. Is there anything to stop me from putting in that amount each month then withdrawing it during the month less whatever I’m likely to spend? It feels wrong. What are others doing? 

Absolutely nothing wrong, £1500 in, then all but a couple of day's spend straight out every 1st.

I pay £1500 in and take it out again same day. Triggers cashback qualification no problem. 

What money are you using to spend on to get the cash back, assume you must be transferring money back over to spend?
I absolutely love Chase and disappointed that they are now 3.5%. I get my wages paid in and tend to move main savings out to RS's and keep my spending money for the month in the 3.5% account and keep a small amount in the cashback account to do my spending.
The trouble with my Gatehouse account is that it can take half a day to get money if/when I need it, so minimise the back/forth from that account to chase pennies. If there is some left over after the RS's and what I anticipate spending monthly I flick it over to Gatehouse.

I keep most EA in Gatehouse but a few hundred in Tandem @4.4% for instant transfers into Chase current as and when it is needed. I do most spending on Chase unless I reach the £15 max cashback and then switch to another card with benefits. My spending usually means £1500 goes into chase anyway but I sometimes put in a lump sum and take it back out if I want to be sure.