MegaSack DRAW - This year's winner is user - rgwb
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I'm after 3 savings accounts which must:
* be FSCS protected & capable of accepting interest on £85k
* instant access
* pay interest monthly or daily
* ideally online / easy to set up quickly
Who do you recommend, what account, what interest rate is available?
Ta
HSBC is pretty decent for an old school bank. 4% up to 50k. Monthly interest and instant access.
Be aware of the tax implications interest outside of ISAs
You can only earn £1000/£500 tax free per year based on your tax band
So your 4% might turn out to be a net 3.2%
Yes utilise any ISA allowance first... Look on the money saving expert website... They update it regularly with the best ISAs and normal savings accounts.
Of the accounts are in three different people's names you could be sneaky... As we're almost at the end of the tax year you could put 20k into each, and then another 20k in each come April 7th? End of year.
That way you could tie up to 120k in ISAs.
Chip instant access cash ISA through the special deal link on Money Saving Expert. About 5% interest. Does all you ask for. Very easy to use. MSE has a ranked list of a bunch of different savings accounts.
NS&I would mean you can use just one account as the limit is much higher. It’s online but i think it can take 2 days to get the money out
Of the accounts are in three different people's names you could be sneaky... As we're almost at the end of the tax year you could put 20k into each, and then another 20k in each come April 7th? End of year.
But that would of course be tax avoidance and effectively gifting someone 40 grand. Probably OK if it's your wife and you've got blended finances, but not for more account holders than that.
Of the accounts are in three different people's names you could be sneaky... As we're almost at the end of the tax year you could put 20k into each, and then another 20k in each come April 7th? End of year.
But that would of course be tax avoidance and effectively gifting someone 40 grand. Probably OK if it's your wife and you've got blended finances, but not for more account holders than that.
I think it would only matter if you died within 7 years of making the gift - as that money would still count as part of the estate for inheritence tax calculations..
If you give cash gifts to your children of more than £3,000 in any one tax year, you’ll need to live for more than seven years after making your gift to avoid it being included
OP didn't say what the accounts were for, I assumed savings accounts for thier children with them wanting 3 seprate accounts..
Of the accounts are in three different people's names you could be sneaky...
I think this might fall into the “tax evasion” side of sneaky.
Of the accounts are in three different people's names you could be sneaky...
I think this might fall into the “tax evasion” side of sneaky.
See my post above - if he's gifting it to children, then there will only be tax implications if they die within 7 years of making the gift, it would be included as part of value of the estate when calculating whether any inheritence tax is due.
I think even then, it's on a sliding scale, so if you only survive a further 3.5 years, then the amount for consideration for inheritence tax would be reletivley less then the total amount gifted.
I think it would only matter if you died within 7 years of making the gift - as that money would still count as part of the estate for inheritence tax calculations..
Ah, if this was indeed intended to be a gift, then you're right, but I assumed it was just a risk mitigation thing to split across providers to fall under the 85k protection cap.
If I put that kind of cash in my daughter's name, I'd not be entirely surprised if I got considerably less that 40k back when requested. 😄 And fair enough if she's money laundering for me.
As we're almost at the end of the tax year you could put 20k into each, and then another 20k in each come April 7th? End of year.
As above re. tax evasion, plus it looks likely the 20K allowance for cash ISAs is going to be reduced in the budget next month. Encourage people to invest in s&s ISAs just as the stock market is looking decidedly unstable - sounds like a brilliant plan!
I use HL for this stuff via a active savings account;
https://www.hl.co.uk/savings/latest-savings-rates-and-products
Current top for easy access are;
The Bank of London Group (4.27%)
OakNorth Bank plc (4.26)
Paragon (4.25)
All pay interest monthly
As we're almost at the end of the tax year you could put 20k into each, and then another 20k in each come April 7th? End of year.
As above re. tax evasion, plus it looks likely the 20K allowance for cash ISAs is going to be reduced in the budget next month. Encourage people to invest in s&s ISAs just as the stock market is looking decidedly unstable - sounds like a brilliant plan!
We don't know what the money is for, or how much money we are talking about -
If it's gifted to 3 children (say to set them up with some savings etc.) its not tax evasion at all.
I don't know where people are getting this idea from...
The only caviat is if the person giving the gift dies within 7 years of giving the gift, then some or all of the money (depending on how long the person giving the gift lives after giving the gift) would be included as part of the calculations of the value of the deceaced estate, for inheritence tax calculation purposes.
It would be handy if the OP elaborated on why they want 3 seperate savings accounts.
As we're almost at the end of the tax year you could put 20k into each, and then another 20k in each come April 7th? End of year.
plus it looks likely the 20K allowance for cash ISAs is going to be reduced in the budget next month. Encourage people to invest in s&s ISAs just as the stock market is looking decidedly unstable - sounds like a brilliant plan!
I can see there might be an announcement regarding ISA rules in the spring budget, but what is your source that announces changes will come into effect a week and a half later (i.e the start of the new tax year)?
Also, S&S ISAs are still ISAs, they are just invested differently to cash ISAs, and so are subject to the same rules.
Got to love the internet
Question
Recommend three banks so that i can keep my money safe
Internet answer
Give away £80 grand. Just look at all the tax you’ll save
Got to love the internet
Question
Recommend three banks so that i can keep my money safe
Internet answer
Give away £80 grand. Just look at all the tax you’ll save
Lol 😆
Tell me you've misunderstood the question without telling me you've misunderstood the question.
We don't actually know what the OP's motives are for wanting 3 different savings accounts, I'm speculating it's to give savings accounts to 3 offspring, seems logical.
Another valid speculation is that they have in excess of £255k in cash and they want to spread it out via several institutions to ensure it all has the full FSCS 85k protection.
But we are non the wiser unless the OP coments to clarify.
Well he does mention the 85k limit saved and seperate banks. So assuming i he has at least £130,001 or 2 banks would do. If the money was held by different individuals one bank would do.
Maths error £170,001
HSBC is pretty decent for an old school bank. 4% up to 50k. Monthly interest and instant access.
See if there's a First Direct equivalent account though, for better CS.
I use Marcus, ISA and normal accounts give about 4.3% i think, easy to set up, and only allows you to transfer funds from your nominated bank account.