Interest Rate Rises

[blythburgh]

Now I have pity even for the better off as they are hit hard just like the poorer people.

Not quite. The difference between not being able to afford good seats at the theatre, and having to choose between heating or food is quite significant.

The problem is the better off often have bigger mortgages and because of the frozen tax thresholds more and more previously comfortable financially are being dragged into the higher tax band. But of course the frozen tax threshold at the lower end is really hard on the lower paid.

[Luke_PieStalker]

As a saver, I welcome these interest rises only problem is trying to avoid hitting the £1000 tax free interest allowance on savings now.

[planteria]

and what if you do Luke, declare it on your tax return?
i welcome them too... but inflation is still wiping out our interest.

[Sarah]

Ford Money

In line with Our Best Rate Guarantee we’re increasing the interest rate on our Flexible Saver effective 15th May 2023 as follows:

Current rate New higher rate
3.40% Gross 3.54% Gross

https://www.fordmoney.co.uk/savings-pro ... ible-saver

[sanity clause]

Investec 90-Day Notice Saver 4.25%

https://savings.investec.com/notice-saver

[Luke_PieStalker]

and what if you do Luke, declare it on your tax return?
i welcome them too... but inflation is still wiping out our interest.

I begrudge paying tax on interest, it sticks in my throat. So i have been topping up a cash isa to avoid the tax. Less interest than a good paying bond of course but not 20% less (rate of tax on savings interest above 1k)

[planteria]

S&S ISA for me Luke. i'm not sure how the tax on cash savings is being collected.

[pabenny]

Banks and building societies are required to report interest by end of June following the tax year. I suspect people who do not already complete a tax return will be asked to do so.

[Luke_PieStalker]

Past experience - no tax return needed if you do go over your £1000 limit on savings interest.

The tax office will just amend your tax code to reflect the owed amount.

Lesson learnt - I make sure to only earn £999.99 in interest and ISA the rest.

[planteria]

interesting LPS.. i'll break the 1k barrier this year, and i don't like the tax code amendment idea.