With the change to tax on interest mentioned in your article last week I think that I may exceed the £1,000 Personal Savings Allowance.
I have a state pension and two small company pensions which total approximately £11,000, plus I have NS&I Guaranteed Growth Bonds and other savings on which interest may total over £1,000, causing me to potentially incur tax.
This hasn t been a concern before as some money was in Isas but as rates have dropped I have moved to other savings accounts.
As my income is below the Personal Tax Allowance of £12,570, will the balance of this be offset against my interest, and do I owe any money? – P.T., via email
NS&I altered the tax treatment of Guaranteed Growth Bonds in May 2019
The first multi-year bonds are now maturing for savers
All interest is now paid in the year bonds mature rather than each year
This could leave savers with bigger pots breaching their £1,000 Personal Savings Allowance and mean they face a tax bill
Will this hit you? Get in touch: george.nixon@thisismoney.co.uk
Opening Criteria
Locational. Customers must meet residency criteria which will be discussed at point of application. and/or Must invest £25K (or currency equivalent) or have a salary of at least £50K
Additional Information
How safe is your money?
In the Isle of Man, Jersey and Guernsey, the first £50,000 per person, per bank/building society, is protected. In Jersey and Guernsey, deposits held by charities are also covered but deposits of companies or partnerships are not covered. Deposits held by companies, partnerships and charities are covered in the Isle of Man up to a maximum of £20,000 per bank/building society.
All rate-starved savers can now benefit from Marcus Bank s near-best buy Isa after it launched a full-scale assault on the tax-free savings market.
The Goldman Sachs-backed bank dipped its toe into the tax-free savings world last Tuesday with a 0.4 per cent Isa open only to existing customers.
However, one week later it has put the account, which is just 0.01 percentage point off the top spot, on general sale, in a boost for hopes that Isa rates will improve. It can be opened with £1.
Goldman Sachs-backed Marcus Bank has put its cash Isa on sale to all customers
It said it had closely monitored the demand for the Isa when it launched last week, having phased the launch .