Savings rates nudging up

[TenYearToGetMyMoneyBack]

For me it is the tax free aspect of premium bonds that is the main appeal, especially now interest rates have gone back to normal levels. I don't know @gerkin 's personal circumstances but they will be £8075 over the £1000 savings tax allowance with the account they just opened. 

[cdd]

Has anyone been able to make the NatWest online ISA transfer form to actually work? I've filled it in and completed it twice now. There is no confirmation from them, despite doing it a week ago.

I phoned them up, and they say they haven't had anything through. They said they would chase it with the ISA team and phone me back - they didn't bother.

This is for the 5.9% 2 year ISA fix. I've got a very limited amount of time left before it's too late to transfer in.

 

[Meat Loaf]

Presumably hundreds of thousands will have been dragged into paying tax on savings interest now that rates have gone up. Have HMRC actually got the capacity/capability to redeem this additional tax?

[TenYearToGetMyMoneyBack]

5 hours ago, cdd said:

Has anyone been able to make the NatWest online ISA transfer form to actually work? I've filled it in and completed it twice now. There is no confirmation from them, despite doing it a week ago.

I phoned them up, and they say they haven't had anything through. They said they would chase it with the ISA team and phone me back - they didn't bother.

This is for the 5.9% 2 year ISA fix. I've got a very limited amount of time left before it's too late to transfer in.

 

I didn't even get that far, always getting different errors depending on whether I entered of didn't enter Skipton's Bank sort Code. I did get a number for the ISA transfer centre but they are only open 9-5 Mon Friday and after 20 minutes on hold gave up as it was the end of my lunchbreak.

3 hours ago, Meat Loaf said:

Presumably hundreds of thousands will have been dragged into paying tax on savings interest now that rates have gone up. Have HMRC actually got the capacity/capability to redeem this additional tax?

With most banking being computerised it shouldn't be too difficult. I recall reading that credit cards wouldn't have been feasible without computers due to the number of calculations required. However, by 1972 a mainframe computer was up to the task.

Having said that it wouldn't surprise me if they returned to the more traditional system where the interest was paid after deduction of basic rate task and you had to claim it back or pay more if you weren't in that category. I wonder how many people have significant savings but don't pay at least basic rate tax The maximum state pension alone will get you within £2000 of having to pay income tax. 

[hurlerontheditch]

Tandem now paying 5% with instant access

[NoHPCinTheUK]

I’ve read the largest 4 banks have seen outflows in the £80 bil region in favour of the small players offering higher rates. 
 

Investec is offering a 1y bond at 6% and I will probably go for it. 

[TenYearToGetMyMoneyBack]

1 hour ago, NoHPCinTheUK said:

I’ve read the largest 4 banks have seen outflows in the £80 bil region in favour of the small players offering higher rates. 
 

Investec is offering a 1y bond at 6% and I will probably go for it. 

You might have read it in the FT

https://www.ft.com/content/c6141a03-d978-491e-9777-a645baac63d5

I have commented before that people are far more likely to put effort into jumping from 4% to 6% than 0.4% to 0.6%.

[Sackboii]

On 8/9/2023 at 7:31 AM, TenYearToGetMyMoneyBack said:

For me it is the tax free aspect of premium bonds that is the main appeal, especially now interest rates have gone back to normal levels. I don't know @gerkin 's personal circumstances but they will be £8075 over the £1000 savings tax allowance with the account they just opened. 

Yes it depends on circumstances. If say you are retired or on a low income generally (below the personal allowance of £12570), you're also entitled to the £5,000 'starting rate for savings' of 0%. This is on top of the £1000 personal savings allowance. Then if the money is in joint names, interest income is half of that each.

Edited August 11, 2023 by Sackboii

[fellow]

On 09/08/2023 at 19:30, Meat Loaf said:

Presumably hundreds of thousands will have been dragged into paying tax on savings interest now that rates have gone up.

I heard JRM mention this on GB News last night so I'm hoping they are planning to increase it.

It looks like other people are calling for this as well:

AJ Bell reiterates call to double savings allowance as further 1 million Brits to be caught by tax on cash savings

https://ifamagazine.com/aj-bell-reiterates-call-to-double-savings-allowance-as-further-1-million-brits-to-be-caught-by-tax-on-cash-savings/

Edited August 11, 2023 by fellow

[TenYearToGetMyMoneyBack]

I just saw this chart on https://www.moneysavingexpert.com/savings/best-cash-isa/

MSE have finally acknowledged that many more people will need to put their cash in an ISA.

[fellow]

NS&I offers highest EVER rate of 6.2% for one-year fixed rate Guaranteed Growth Bonds

https://www.thisismoney.co.uk/money/saving/article-12460557/NS-offers-highest-rate-6-2-one-year-fixed-rate-Guaranteed-Growth-Bonds-boosts-income-bonds-too.html?i

 

[Gemma Rose]

49 minutes ago, fellow said:

NS&I offers highest EVER rate of 6.2% for one-year fixed rate Guaranteed Growth Bonds

https://www.thisismoney.co.uk/money/saving/article-12460557/NS-offers-highest-rate-6-2-one-year-fixed-rate-Guaranteed-Growth-Bonds-boosts-income-bonds-too.html?i

 

You beat me to it !.  
Anyone care to explain as NS&I bonds don’t usually make the Best Buy tables. Does this signify anything?

[JustAnotherProle]

I just had an email from my bank informing me that my saving rate has increased again! I thought interest rates were going to decrease according to *cough* a certain poster. on these forums. 😉

[Sackboii]

Just now, JustAnotherProle said:

I just had an email from my bank informing me that my saving rate has increased again! I thought interest rates were going to decrease according to *cough* a certain poster. on these forums. 😉

Yes. Judging by the number of threads where this, that and the other are ROCKETING still, inflation still seems baked in.. 

[henry the king]

1 hour ago, fellow said:

NS&I offers highest EVER rate of 6.2% for one-year fixed rate Guaranteed Growth Bonds

https://www.thisismoney.co.uk/money/saving/article-12460557/NS-offers-highest-rate-6-2-one-year-fixed-rate-Guaranteed-Growth-Bonds-boosts-income-bonds-too.html?i

 

Forces the banks to up their rates too

[Bruce Banner]

NS&I ISA rates are dreadful at the moment.

[Jason]

2 hours ago, Bruce Banner said:

NS&I ISA rates are dreadful at the moment.

6.2% is quite good!

[micawber]

Just now, Jason said:

6.2% is quite good!

Especially if you have unused tax allowance available!

[Bruce Banner]

6 minutes ago, Jason said:

6.2% is quite good!

6.2% is not for an ISA, NS&I ISA rate is 3%.

Edited August 30, 2023 by Bruce Banner

[Sackboii]

3 hours ago, Bruce Banner said:

NS&I ISA rates are dreadful at the moment.

Yes, potential tax-grab.. Coax people to invest more at attractive rates and then cream off the tax..

[fellow]

15 hours ago, Bruce Banner said:

6.2% is not for an ISA, NS&I ISA rate is 3%.

But this is still 4.96% after tax so not bad for 100% safe, especially if you have already used up your ISA allowance.

 

14 hours ago, Sackboii said:

Yes, potential tax-grab.. Coax people to invest more at attractive rates and then cream off the tax..

They pay out a net 4.96% to you so how is this a tax grab? Only if it forces other banks to raise rates to similar levels would this increase tax take.

 

18 hours ago, henry the king said:

Forces the banks to up their rates too

Also takes money out of the banks so they have less available to lend out on mortgages.

 

18 hours ago, Gemma Rose said:

You beat me to it !.  
Anyone care to explain as NS&I bonds don’t usually make the Best Buy tables. Does this signify anything?

The Government need to raise more money and this is a way of doing so outside of the bond markets so it doesn't contribute to higher gilt yields and further losses on the QE?

They are expecting the base rate to go above 6% pretty soon?

They are setting an example to force banks to increase savings rates?

This is a bribe to cash rich boomers before the next election?

[Bruce Banner]

25 minutes ago, fellow said:

But this is still 4.96% after tax so not bad for 100% safe, especially if you have already used up your ISA allowance.

I wasn't arguing, merely stating a fact.

 

[Dreamcasting]

Wonder how long this NS&I 6.2% will be available for. Might put some in myself... will take a day or so to transfer the funds though

[Stewy]

1 hour ago, fellow said:

But this is still 4.96% after tax so not bad for 100% safe, especially if you have already used up your ISA allowance.

 

They pay out a net 4.96% to you so how is this a tax grab? Only if it forces other banks to raise rates to similar levels would this increase tax take.

 

Also takes money out of the banks so they have less available to lend out on mortgages.

 

The Government need to raise more money and this is a way of doing so outside of the bond markets so it doesn't contribute to higher gilt yields and further losses on the QE?

They are expecting the base rate to go above 6% pretty soon?

They are setting an example to force banks to increase savings rates?

This is a bribe to cash rich boomers before the next election?

3.8% to a lot of people. 

[henry the king]

1 hour ago, Dreamcasting said:

Wonder how long this NS&I 6.2% will be available for. Might put some in myself... will take a day or so to transfer the funds though

I can't imagine it will go soon but could be wrong.

It seems like the aim is to drive up bank savings rates. If anything I'd suspect another hike to premium bond rates might be coming.