Nationwide Members bond 5% 18 months up to £10K

masonic

Kim_13 said:

If there was an option to have interest paid away which wasn’t taken up, it’s still counted as accessible. 

Not according to HMRC, when finally pinned down. It must be possible to request access at the point it is credited. If the terms of your account require you to choose up front, then only if you choose pay-away would the interest arise for tax when credited (paid-away). If you elect to lock away for the duration and are bound by this, for that version of the account interest arises at maturity.

2010

Surely no one's going to put money into this bond unless they've already used up all their £20k ISA allowance for the year. 
Any ISA rate of 4% or above is as good as this bond's.
Use all your ISA allowance while it's still available.

easysaver

2010 said:

Surely no one's going to put money into this bond unless they've already used up all their £20k ISA allowance for the year. 
Any ISA rate of 4% or above is as good as this bond's.
Use all your ISA allowance while it's still available.

Your statement assumes everyone is paying tax on savings, which is not the case.

LeafGreen

and lots of people already have used up their £20K ISA allowance

friolento

easysaver said:

2010 said:

Surely no one's going to put money into this bond unless they've already used up all their £20k ISA allowance for the year. 
Any ISA rate of 4% or above is as good as this bond's.
Use all your ISA allowance while it's still available.

Your statement assumes everyone is paying tax on savings, which is not the case.

and that everybody is a BR tax payer, which is also not the case

sammy_zammy

and that ISA rates at 4% or above continue to exist for the imminent future, excluding bonuses which they many have already used all of.

WindfallWendy

masonic said:

Growingold said:

Kim_13 said:

zombie404 said:

So can some one just clarify for my fuzzy brain.

Is the interest paid at 12 months then at 18 month end of term

Or is ALL interest paid after 18 month maturity date

12 months and then at the end of term. 

In practical terms it makes no difference (other than some compounding) as it will all be taxable in the same tax year.  

Reading this on their Member Exclusive Bond page. Just something to be aware of if in future the interest payments straddle 2 different tax years. 
Nationwide has a legal obligation to report interest to HMRC in the tax year that it is paid into your account, which may differ to the tax year in which the interest is deemed to arise and is taxable.

It's good to see a provider that is on the ball with this and pointing it out.

True of all such accounts interest is credited in a different tax year to being accessible.

Holy crapoli, I did not know this.

LHW99

easysaver said:

2010 said:

Surely no one's going to put money into this bond unless they've already used up all their £20k ISA allowance for the year. 
Any ISA rate of 4% or above is as good as this bond's.
Use all your ISA allowance while it's still available.

Your statement assumes everyone is paying tax on savings, which is not the case.

And for the sake of keeping a small amount in this account (joint) means likely qualifying for next year's fairer share (if it happens) as well as the 5%.

Dazed_and_C0nfused

roked said:

BridgetTheCat said:

I’m hoping it’ll still be available when my 5.4% fixed rate isa finishes in September.

Why would you switch your funds from an isa to a non isa product? unless you are projecting to be below your PSA, this would not make sense

What about when the PSA is of no relevance to you?

Best net return is generally the key thing.