New Easy Savings account

Paul_Croft

I have a joint easy access account with Tesco bank which I am choosing to close. I am wanting to put a large lump sum of money into another bank in my wife’s account name only. The interest is 4% over a year but the amount of interest will be well above the normal guaranteed allowance of £1000. But the circumstances are that my wife has only ever worked part time as a casual worker for 10y years and has always been dependant on my pensionable income. My wife is 59 yrs old and I am 71 yrs old. What I would like to clarify is whether my wife is allowed a personal allowance of £12.570 on top of the £1000 and that if she was to earn say £3000 of interest for the year on the new account, would she be liable for tax on the interest.

eskbanker

If your wife has no employment or pension income of her own then she could earn up to £18,570 of savings interest before paying tax:

https://www.moneysavingexpert.com/savings/tax-free-savings/

If she has some employment income then that the £12,570 personal tax allowance would be applied to that first, before the savings interest, and then there's the potential to use the marriage allowance to your collective benefit....

slacko2

Why not take advantage of a sipp nice return for £2700 (aprox) input if you have a chunk to go into savings