Interest on Nationwide fixed rate bond joint account

Cornish_mum

Nationwide have attributed all interest allocated in 23/24 on a 2 year fixed rate bond (held in joint names with my husband) to my list of interest liable for tax.

I only became aware of this recently; when they informed me this week by email that they had updated 23/24 interest and tax paid statements because of a previous error.

The interest was added to the account in October 2023 but only became accessible in October 2024. 

The money to fund the bond was paid from our joint current account and my husband was the lead applicant. I was expecting 50% of the interest to be allocated to my husband and 50% to myself. This was the principal reason we selected a joint product. On maturity all funds were transferred into an ISA in my husband’s name.

Does anyone have experience of this, they could share or ideas of how to resolve?

Cornish_mum

Just to add they also seem to allocated my husband’s fairer share payment for our flex account to my list of taxable interest! This is very strange as he is lead applicant on the account (it was his main account for many years before he added me as second account holder). 

Notepad_Phil

Have you checked to see what your husband's list shows? It's been a while since I've received interest from them, but possibly what you are seeing is just the total amount of interest that the account has generated, not how much your share of that is. And with regard to the fairer share payment, I thought that joint owners of a current account would both get a payment, or are you saying that you've received both payments and your husband's list shows none?

Dazed_and_C0nfused

I'm a bit confused, are you referring to information you have received from Nationwide.  Or information you have received from HMRC about the taxable interest for a particular tax year?

Sarahspangles

I have also had the email from Nationwide, but deleted it as we don’t have any joint products apart from the current account. If the interest incorrectly reported takes you into (or further into) being taxed on interest you may need to write to HMRC.

We both got the £100 Fairer Shares as we have a joint account and both have separate savings products. So having products in joint names seems to have paid off.

Cornish_mum

Dazed_and_C0nfused said:

I'm a bit confused, are you referring to information you have received from Nationwide.  Or information you have received from HMRC about the taxable interest for a particular tax year?

Thanks. The interest information has been provided by nationwide which they have already reported to HMRC (I confirmed this with Nationwide by phone).

The difference takes me well into PSA but not over the £10,000 reporting limit. 

When I called Nationwide the advisor was very unclear about it all and what should be done. 

I’d be interested if anyone has experience, as this is the first time I have joint products generating interest.