Fixed Rate Bonds - confused by HMRC advice

masonic

https://forums.moneysavingexpert.com/discussion/comment/81998941#Comment_81998941

One can list them on Moneyfactscompare using the full search and selecting 'on maturity' as the interest option. For example for the 5 year fixes:

https://moneyfactscompare.co.uk/savings-accounts/5-year-fixed-rate-bonds/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate&id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=4&terms=64&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2&flexible-isa-only=2

The ones that state "on maturity (compounded annually)" will probably need further investigation Edit: it looks like these are accounts that pay annually but interest must be compounded, so exclude these. Therefore about 8 providers to explore in more detail… iFAST, Castle Trust Bank, Aldermore, UBL, Habib, LHV, UBI, Danske - in order of competitiveness. E&OE

I am interested as to whether DF Capital is actually among this number, as it doesn't appear to be.

ToastLady

I got muddled figures for HMRC last year, and couldn't figure it out, even though I am pretty fastidious in noting when interest is paid. Turned out that a fixed rate with interest only paid on maturity, reported quarterly profits over 2 tax years, and the account simply did not show this. What was worse was that there was no way of knowing this by looking at account statements, which simply showed the amount deposited.
I accept that this may have been my own fault, not realising when I opened the account regarding the quarterly profit issue. Would have been much easier if the interest had shown up on the account. I am deliberately not naming the bank in question now, as they are now showing the profit gained, but this has been fairly recent, to my knowledge

masonic

https://forums.moneysavingexpert.com/discussion/comment/81998956#Comment_81998956

There is only one sharia bank that tends to report profit quarterly, but I'll not out them here. A fellow forumite has it in writing from them that they report all profit credited on an annual basis, not all at maturity.

ToastLady

https://forums.moneysavingexpert.com/discussion/comment/81998960#Comment_81998960

Thank you for confirming what caught me out last tax year. It is not worth me fighting over the way the way they report things. At least they seem to show in your accounts now, so this seems to be fairly new.
I still think it was and is wrong, to report tax due until maturity.