Savings interest rate thread
Discussion
No worries all. Glad people can make use of it. It's only one account per customer be nice if they offered the pots/multi accounts some other's do as I have another chunk of change that is my own savings (the rest is joint for building works) I could lump all in but would have to work out the interest on each amount and would also go over the government guarantee.
For those paying higher rate tax doesn’t this probably net out worse than bonds if you have more than £20k or so (and less than 50k/100k if using partners bond allowance) once tax is factored?
Seems some big numbers mentioned on here but it seemed that for people with larger amounts these accounts need to be a fair bit higher to pay over the tax free alternatives…
Must admit I have read a few times the article on this on Lewis’ website and it still isn’t entirely clear. All it says is that the tax is taken by adjusting your code, but then for anyone earning above 125k they don’t have any allowance to give anyway, so how does that work?
Seems some big numbers mentioned on here but it seemed that for people with larger amounts these accounts need to be a fair bit higher to pay over the tax free alternatives…
Must admit I have read a few times the article on this on Lewis’ website and it still isn’t entirely clear. All it says is that the tax is taken by adjusting your code, but then for anyone earning above 125k they don’t have any allowance to give anyway, so how does that work?
Edited by okgo on Wednesday 12th October 09:33
Edited by okgo on Wednesday 12th October 09:33
okgo said:
For those paying higher rate tax doesn’t this probably net out worse than bonds if you have more than £20k or so (and less than 50k/100k if using partners bond allowance) once tax is factored?
Seems some big numbers mentioned on here but it seemed that for people with larger amounts these accounts need to be a fair bit higher to pay over the tax free alternatives…
Must admit I have read a few times the article on this on Lewis’ website and it still isn’t entirely clear. All it says is that the tax is taken by adjusting your code, but then for anyone earning above 125k they don’t have any allowance to give anyway, so how does that work?
Agreed. I've selected to have interest paid annually. Which will be in the next tax year, I'll have raided the savings to pay a lump off the mortgage prior to renewal. So will hopefully minimise the tax burden by spreading it over different financial years.Seems some big numbers mentioned on here but it seemed that for people with larger amounts these accounts need to be a fair bit higher to pay over the tax free alternatives…
Must admit I have read a few times the article on this on Lewis’ website and it still isn’t entirely clear. All it says is that the tax is taken by adjusting your code, but then for anyone earning above 125k they don’t have any allowance to give anyway, so how does that work?
Edited by okgo on Wednesday 12th October 09:33
Edited by okgo on Wednesday 12th October 09:33
okgo said:
For those paying higher rate tax doesn’t this probably net out worse than bonds if you have more than £20k or so (and less than 50k/100k if using partners bond allowance) once tax is factored?
Seems some big numbers mentioned on here but it seemed that for people with larger amounts these accounts need to be a fair bit higher to pay over the tax free alternatives…
Must admit I have read a few times the article on this on Lewis’ website and it still isn’t entirely clear. All it says is that the tax is taken by adjusting your code, but then for anyone earning above 125k they don’t have any allowance to give anyway, so how does that work?
You can have a negative tax code - starts with a K. The higher the number after the K, the more tax you pay.Seems some big numbers mentioned on here but it seemed that for people with larger amounts these accounts need to be a fair bit higher to pay over the tax free alternatives…
Must admit I have read a few times the article on this on Lewis’ website and it still isn’t entirely clear. All it says is that the tax is taken by adjusting your code, but then for anyone earning above 125k they don’t have any allowance to give anyway, so how does that work?
As you say, now interest rates are going up people will have to be aware of this and ISAs might come back into favour.
Just submitted an application for the Santander account. Email says I’ll expect to hear within 3 working days (not an existing Santander customer). The f
k Off Fund will go in there from Chase.
Also opened the Barclays Rainy Day account (existing Barclays customer) to drop £5k in there for the 5% interest. I was initially put off that I had to switch on Barclays Blue reward at £5 cost/month but then noted in the small print that this is credited back so long as 2 or more direct debits go through that account. It’s my main spending account so no brainer.
As for ISAs, interesting they may be coming back into usefulness - time to start loading them again.
k Off Fund will go in there from Chase. Also opened the Barclays Rainy Day account (existing Barclays customer) to drop £5k in there for the 5% interest. I was initially put off that I had to switch on Barclays Blue reward at £5 cost/month but then noted in the small print that this is credited back so long as 2 or more direct debits go through that account. It’s my main spending account so no brainer.
As for ISAs, interesting they may be coming back into usefulness - time to start loading them again.
OMITN said:
Just submitted an application for the Santander account. Email says I’ll expect to hear within 3 working days (not an existing Santander customer). The fk Off Fund will go in there from Chase.
Hope they are not closing this offer down, due to so much demand, I setup as new customer yesterday, opened straight up - just need to wait for my online details in post so can login etc.k Off Fund will go in there from Chase. Same, my chase is now empty, apart from food shopping account, still want the 1% cashback
Years ago I had an Abbey Mortgage, they seem to think I'm an existing customer and want me to fill in change of details form, 2 proofs of ID, all manually sent in the post with my account numbers..
Try explaining to customer services that you have not got an account , they say I can see you don't have an account , but send us the details of the account.
So its a pass from me, the service is useless, I've just said close the account if you can't treat me as a new customer.
Try explaining to customer services that you have not got an account , they say I can see you don't have an account , but send us the details of the account.
So its a pass from me, the service is useless, I've just said close the account if you can't treat me as a new customer.
Evolved said:
I got the same message. Was approved within 8 hours. Perhaps a lot of applications to process.
Fingers crossed. I did get the impression that it is well subscribed - esp since it was on Martin Lewis’s email as well as PH..! I have to say that the continuing ease of being able to open accounts without the hassle of days gone by makes all of these opportunities much easier to grasp.
Opened it late last night and it was there this morning, cancelled my standing order to Marcus from my Santander current account (123 Lite) and added a new one to the new saver. All done but went into the 123 Lite to check and it logged me out and said my account had been blocked and to ring customer services.
Brilliant, it's a SO between your my own Santander accounts you idiots!!!!!
Brilliant, it's a SO between your my own Santander accounts you idiots!!!!!
RicksAlfas said:
okgo said:
For those paying higher rate tax doesn’t this probably net out worse than bonds if you have more than £20k or so (and less than 50k/100k if using partners bond allowance) once tax is factored?
Seems some big numbers mentioned on here but it seemed that for people with larger amounts these accounts need to be a fair bit higher to pay over the tax free alternatives…
Must admit I have read a few times the article on this on Lewis’ website and it still isn’t entirely clear. All it says is that the tax is taken by adjusting your code, but then for anyone earning above 125k they don’t have any allowance to give anyway, so how does that work?
You can have a negative tax code - starts with a K. The higher the number after the K, the more tax you pay.Seems some big numbers mentioned on here but it seemed that for people with larger amounts these accounts need to be a fair bit higher to pay over the tax free alternatives…
Must admit I have read a few times the article on this on Lewis’ website and it still isn’t entirely clear. All it says is that the tax is taken by adjusting your code, but then for anyone earning above 125k they don’t have any allowance to give anyway, so how does that work?
As you say, now interest rates are going up people will have to be aware of this and ISAs might come back into favour.
Might be worth considering as both Mrs F and I are getting close to the FCSC limit in Coventry BS and need also to move some from tax payable accounts.
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