The Top Regular Savers Discussion Thread

pecunianonolet

allegro120 said:

pecunianonolet said:

To clarify, I have not with any word said that people not consider taxes and it makes also perfect sense to discuss the details of it at the appropriate places. 

All I was trying to say was that I felt the conversation can be, at times, one dimensional and some get "picked on" when they share reasons why they not open or not fund regular savers. 

I am a higher rate tax payer. I have just withdrawn the full 5k of my RBS/Natwest regular savers and put them into my ISA with CMC. I just didn't have the funds early in the year so it is time to shift funds into my ISA and have stopped funding many or withdrawn from them. 

You probably know this, but I will mention it anyway - funds with CMC are not protected by FSCS.  The risk is very low, but still worth to bear this in mind.  I have only 4% of my ISA funds in CMC, but it's just me being  overly risk-averse.  I am going to increase it though, now the dust has settled it's the time to transfer 4.1% Tembo out, CMC will get a fair proportion of it. 

I do but good shout to point out again. I deem the risk of being assulted or driven over while out on a walk higher nowadays. 

Theleak250

So the conclusion is if you are a higher rate tax payer the savers are not much worth it??

wmb194

Theleak250 said:

So the conclusion is if you are a higher rate tax payer the savers are not much worth it??

You have to put your cash somewhere. It's up to you to decide whether or not you want the best net return.

Kim_13

With a £500 PSA, roughly £1,000 into Regular Savers per month are tax free (obviously this will need adjusting if you expect to qualify for a Nationwide Fairer Share payment.) If your income is close to the Child Benefit limit or the Additional Rate threshold the same applies, as you would lose more than you gain in interest (and therefore taking a lower interest rate or parking excess funds into a current account paying no interest would be better.)

masonic

Theleak250 said:

So the conclusion is if you are a higher rate tax payer the savers are not much worth it??

They will still be more valuable than an easy access savings account or fix paying a lower rate if all it costs you is higher rate tax. Though there are tax traps in the system that make it better to have 100% of nothing than 60% of something, as pointed out above.

friolento

Theleak250 said:

So the conclusion is if you are a higher rate tax payer the savers are not much worth it??

Any account that pays, after any tax, more interest than another one, is much worth it for me as an HR tax payer.

nomorekids

friolento said:

Theleak250 said:

So the conclusion is if you are a higher rate tax payer the savers are not much worth it??

Any account that pays, after any tax, more interest than another one, is much worth it for me as an HR tax payer.

exactly this, just adjust the spreadsheet to net once the PSA is blown, or rather nearly blown in our case, with this in mind, I'm late to the close and reopen to following tax year "renew" party is there a list of easily renewable regular savers? Looking to renew Santander 5%, Progressive 5.5% and Co op 7% for sure and wish I could for TSB,  I expect TSB is like Halifax and only one per year. 

Speculator

nomorekids said:

friolento said:

Theleak250 said:

So the conclusion is if you are a higher rate tax payer the savers are not much worth it??

Any account that pays, after any tax, more interest than another one, is much worth it for me as an HR tax payer.

exactly this, just adjust the spreadsheet to net once the PSA is blown, or rather nearly blown in our case, with this in mind, I'm late to the close and reopen to following tax year "renew" party is there a list of easily renewable regular savers? Looking to renew Santander 5%, Progressive 5.5% and Co op 7% for sure and wish I could for TSB, Cambridge and Market Harborough but the latter two are fixed no withdrawals and I expect TSB is like Halifax and only one per year. 

There are no restrictions on Halifax/Lloyds regular savers.

I've renewed multiple times.

surreysaver

Theleak250 said:

So the conclusion is if you are a higher rate tax payer the savers are not much worth it??

The higher rate (7% and above) would still be worth it, as the net return would be more than you could get in an easy access flexible ISA. Those less than 7% would be worth it once you've used up your £20k ISA allowance.

Nick_C

Personally, I ensure that my taxable interest from savings is always just below £1k.  I am losing out on some potential income, but it is worth it to avoid the hassle of dealing with HMRC, whose systems and processes (and many of their staff) are not fit for purpose.