Linkage:
A&L Savings Account
Full Version: Alliance & Leicester 6.15% Savings Account
After reading around, I thought the best savings accounts on the market were currently Icesave and Icici but I stumbled across a savings account from Alliance & Leicester offering a whopping 6.15%. It is from their international arm but there seems to be no restrictions on who can open an account. Has anyone else opened one of these? I haven't missed something obvious have I?
Linkage:
A&L Savings Account
Linkage:
A&L Savings Account
Thanks for this, bear monger
I've just looked it up- seems it was only issued on the 29th May(here's the press release,) so maybe it hasnt hit the general awareness level yet
I have read the terms and conditions etc. , and I can't see a catch in it either.... Maybe someone more fiancially astute than me will spot a problem.. but maybe not....
I've just looked it up- seems it was only issued on the 29th May(here's the press release,) so maybe it hasnt hit the general awareness level yet
I have read the terms and conditions etc. , and I can't see a catch in it either.... Maybe someone more fiancially astute than me will spot a problem.. but maybe not....
Looks very funky.
Firstly, this should be in the Cash ISA And Savings Accounts forum - Can a mod move it ?
Seems a bit odd that not even a signature is needed to open it.
Secondly. it looks very funky and I am sure by default no tax will get deducted. But apparently there was a recent clampdown by the inland revenue on offshore acounts so you may get a great big tax from to fill in.
I am not convinced they will accept applications from UK residents.
Guys please let us know how you get on.
Firstly, this should be in the Cash ISA And Savings Accounts forum - Can a mod move it ?
Seems a bit odd that not even a signature is needed to open it.
Secondly. it looks very funky and I am sure by default no tax will get deducted. But apparently there was a recent clampdown by the inland revenue on offshore acounts so you may get a great big tax from to fill in.
I am not convinced they will accept applications from UK residents.
Guys please let us know how you get on.
Wot about Alliance & Leicester Premier Direct Current account at 6.50% ?
http://www.alliance-leicester.co.uk/curren..._-mortgagesaver
http://www.alliance-leicester.co.uk/curren..._-mortgagesaver
QUOTE(penbat1 @ Jun 3 2007, 02:57 PM) [snapback]656385[/snapback]
Wot about Alliance & Leicester Premier Direct Current account at 6.50% ?
http://www.alliance-leicester.co.uk/curren..._-mortgagesaver
http://www.alliance-leicester.co.uk/curren..._-mortgagesaver
The A&L premier account is really an interest earning current account rather than a savings account per se. - have to put in £500 a month and the high rate only applies to the first £2500.. after that you get 0.10% AER (variable) on balances over £2,500.
With regard to Alliance and Leicester offshore- i just filled in the form and it seems to be fine for a Uk resident... I'll let you know if i run into problems. Whilst they don't require a paper signature they do require you to send in proof of identity by post.. eg current Uk passport and utility bill
QUOTE(devonblues @ Jun 3 2007, 03:10 PM) [snapback]656390[/snapback]
The A&L premier account is really an interest earning current account rather than a savings account per se. - have to put in £500 a month and the high rate only applies to the first £2500.. after that you get 0.10% AER (variable) on balances over £2,500.
With regard to Alliance and Leicester offshore- i just filled in the form and it seems to be fine for a Uk resident... I'll let you know if i run into problems. Whilst they don't require a paper signature they do require you to send in proof of identity by post.. eg current Uk passport and utility bill
With regard to Alliance and Leicester offshore- i just filled in the form and it seems to be fine for a Uk resident... I'll let you know if i run into problems. Whilst they don't require a paper signature they do require you to send in proof of identity by post.. eg current Uk passport and utility bill
Let us know how you get on devonblues - if it is as kosher as it appears, I think that this will become the new best savings account to beat Icici and Icesave.
Just a thought - now that the credit crunch is starting, it looks like cash is king once again and the banks are starting to compete for savings business with a bit more enthusiasm than they used to.
QUOTE(Bear Monger @ Jun 3 2007, 05:15 PM) [snapback]656466[/snapback]
Let us know how you get on devonblues - if it is as kosher as it appears, I think that this will become the new best savings account to beat Icici and Icesave.
Just a thought - now that the credit crunch is starting, it looks like cash is king once again and the banks are starting to compete for savings business with a bit more enthusiasm than they used to.
Just a thought - now that the credit crunch is starting, it looks like cash is king once again and the banks are starting to compete for savings business with a bit more enthusiasm than they used to.
It rather depends on how much tax is liable. In the terms and conditions http://www.alil.co.im/offshore-sterling-ac...aver-Terms.aspx it says:
12. Where we are permitted by law to pay interest gross, without deduction of tax, we will do so. However, if law or regulations come into force which require us to deduct tax or any other externally imposed levy before paying interest to you, we reserve the right to make such deductions. It is your responsibility to declare any interest earned to the relevant tax authorities.
13. Customers who are residents of European Union (EU) member states are subject to legislation pursuant to the European Union Savings Tax Directive. This means that under Isle of Man law and regulation, a retention tax will be applied to interest payments in respect of the accounts of EU resident customers, unless those customers:
Opt for Exchange of Information, in which case their personal and account details will be disclosed to the Isle of Man Government, who will pass those details to the tax authorities of the EU member state in which they are resident;
or
Declare to us that they are resident but non-domiciled in their EU country of residence, and provide us with such evidence of that status as we may require;
or
Declare to us that they are exempt from tax, and provide us with such evidence and explanation of that status as we may require.
If retention tax is applied to the interest paid on your account, we will advise you of the amount of tax deducted. The current rate of retention tax is 15% for interest payments made up to and including 30 June 2008 after which the rate will rise to 20% for interest payments made up to and including 30 June 2011 after which the rate will rise to 35%."
Can anyone make sense of this ? This default "retention tax" sounds fine until 2011 then it becomes prohibitive.
Also there is reference to Isle of Man compensation limits if A & L went bust of up to 75% of £15,000.
If you are a UK tax payer and elect for the first option:
Opt for Exchange of Information, in which case their personal and account details will be disclosed to the Isle of Man Government, who will pass those details to the tax authorities of the EU member state in which they are resident;
then you will get interest paid gross with no retention tax. De facto you manage your own tax affairs (and can defer tax payment accordingly) as the authorities will know that you have an account and can check on your tax return.
The retention tax will apply if you do not elect for exchange of information and do not provide adequate proof of non residential status (second indent) or tax exemption (third option). This is what it says in the brochure:
Opt for Exchange of Information, in which case their personal and account details will be disclosed to the Isle of Man Government, who will pass those details to the tax authorities of the EU member state in which they are resident;
then you will get interest paid gross with no retention tax. De facto you manage your own tax affairs (and can defer tax payment accordingly) as the authorities will know that you have an account and can check on your tax return.
The retention tax will apply if you do not elect for exchange of information and do not provide adequate proof of non residential status (second indent) or tax exemption (third option). This is what it says in the brochure:
QUOTE
One of the main benefits to saving offshore is that, subject to your circumstances, interest on your savings
can be paid without deduction of tax. Many people prefer to receive their interest gross because it allows
them to manage their own tax affairs. Benefits may be gained for example from the deferral of payment
of any tax due on interest. All customers should note that it is their responsibility to declare interest earned
to the relevant tax authority.
For customers who are resident outside the European Union (EU), interest will automatically be paid gross.
However, customers who are residents of an EU member state should note that their interest payments
are subject to Isle of Man rules made in response to the European Union Savings Tax Directive (EUSD).
EU resident customers who specifically authorise us to exchange their information with the Isle of Man
Government can continue to receive their interest gross. EU resident customers who do not provide us
with such authorisation will generally find that their interest payments are subject to a retention tax,
currently 15%. There are a limited number of exceptions to this rule, subject to documentary evidence
being provided to us. Details are given on our application form..
can be paid without deduction of tax. Many people prefer to receive their interest gross because it allows
them to manage their own tax affairs. Benefits may be gained for example from the deferral of payment
of any tax due on interest. All customers should note that it is their responsibility to declare interest earned
to the relevant tax authority.
For customers who are resident outside the European Union (EU), interest will automatically be paid gross.
However, customers who are residents of an EU member state should note that their interest payments
are subject to Isle of Man rules made in response to the European Union Savings Tax Directive (EUSD).
EU resident customers who specifically authorise us to exchange their information with the Isle of Man
Government can continue to receive their interest gross. EU resident customers who do not provide us
with such authorisation will generally find that their interest payments are subject to a retention tax,
currently 15%. There are a limited number of exceptions to this rule, subject to documentary evidence
being provided to us. Details are given on our application form..
QUOTE(devonblues @ Jun 4 2007, 08:35 AM) [snapback]656816[/snapback]
If you are a UK tax payer and elect for the first option:
Opt for Exchange of Information, in which case their personal and account details will be disclosed to the Isle of Man Government, who will pass those details to the tax authorities of the EU member state in which they are resident;
then you will get interest paid gross with no retention tax. De facto you manage your own tax affairs (and can defer tax payment accordingly) as the authorities will know that you have an account and can check on your tax return.
The retention tax will apply if you do not elect for exchange of information and do not provide adequate proof of non residential status (second indent) or tax exemption (third option). This is what it says in the brochure:
Opt for Exchange of Information, in which case their personal and account details will be disclosed to the Isle of Man Government, who will pass those details to the tax authorities of the EU member state in which they are resident;
then you will get interest paid gross with no retention tax. De facto you manage your own tax affairs (and can defer tax payment accordingly) as the authorities will know that you have an account and can check on your tax return.
The retention tax will apply if you do not elect for exchange of information and do not provide adequate proof of non residential status (second indent) or tax exemption (third option). This is what it says in the brochure:
But it sounds like it is less hassle to just pay retention tax up to 2011 but thereafter inform the authorities.
QUOTE(penbat1 @ Jun 5 2007, 09:50 AM) [snapback]657773[/snapback]
But it sounds like it is less hassle to just pay retention tax up to 2011 but thereafter inform the authorities.
Probably less likely to allow you to open an account... its all about them trying to prevent tax avoidance. I cannot see that if you are a Uk resident and put in a UK address that they will be very happy with you not electing for your information to be shared. I have no problems with ticking the box on information sharing- I'll be able to defer tax by a year anyway. I'll have to pay it sometime, but paying it a year later is helpful with inflation etc. (I've just sold my house, so have a capital sum to invest which I didn't have before, so my payment on account is currently zero...will not have to pay tax on this lot till jan 2009...)
QUOTE(devonblues @ Jun 5 2007, 12:16 PM) [snapback]657933[/snapback]
Probably less likely to allow you to open an account... its all about them trying to prevent tax avoidance. I cannot see that if you are a Uk resident and put in a UK address that they will be very happy with you not electing for your information to be shared. I have no problems with ticking the box on information sharing- I'll be able to defer tax by a year anyway. I'll have to pay it sometime, but paying it a year later is helpful with inflation etc. (I've just sold my house, so have a capital sum to invest which I didn't have before, so my payment on account is currently zero...will not have to pay tax on this lot till jan 2009...)
Just opened an a/c and am now being asked for provide proof of ID. My source/nominated account is an A&L a/c!!
Good god, what is the world coming too?
I emailed them asking if I needed to re-prove who I was?!?! I guess we all know the answer to that.
Makes one want to chuck
Frank.
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