Nationwide 8% Regular savers for bank account holders

[Gerry557]

Just noticed Nationwide have introduced an 8% Regular savers for it's bank account holders. Max £200 per calender month with limited withdrawals.

Not for everyone but might make me moan a tad less about their savings rates.


https://www.nationwide.co.uk/savings/flex-regular-saver

[BullDog]

Yes, applied yesterday. Have to be careful though, I am right up against the miserable £1000 interest allowance now.

[stevensfo]

Yes, applied yesterday. Have to be careful though, I am right up against the miserable £1000 interest allowance now.

According to the link, the max interest you'll receive over 12 months will be just £104.

Withdrawals made Interest rate AER/gross a year (variable) Balance after 12 months
0 8.00% £2,504.00
4 2.15% £2,392.76

Not sure how it works with the financial year end in April etc, but I imagine that any tax you pay will be pretty low.


Steve

[BullDog]

Yes, applied yesterday. Have to be careful though, I am right up against the miserable £1000 interest allowance now.

According to the link, the max interest you'll receive over 12 months will be just £104.

Withdrawals made Interest rate AER/gross a year (variable) Balance after 12 months
0 8.00% £2,504.00
4 2.15% £2,392.76

Not sure how it works with the financial year end in April etc, but I imagine that any tax you pay will be pretty low.


Steve

Yes, all the same that brings me very close to the pathetic £1000 interest allowance.

[Gerry557]

That miserable allowance gets more miserable the year after.

Still even after tax it might be better than lower ISA rates. I have seen calls for the limit to be upped as just over £16k gets you there with the rise in interest rates. The admin might make it a no no though.

Giving away £100 or so with a eye catching rate is almost the same as the £100 they gave to loyal members except lots didn't qualify cos they didn't have a picture of an African elephant inside a British red telephone box or a middle name that was in Latin.

[swill453]

Yes, all the same that brings me very close to the pathetic £1000 interest allowance.

Unless you're a non-taxpayer, then you get another £5000

Scott.

[mc2fool]

Yes, all the same that brings me very close to the pathetic £1000 interest allowance.

It's (pun intended) interesting how the fairly recently (2016) introduced change of having any allowance at all for savings interest has so soon become "pathetic". 'Twas only 8 years ago that there was no allowance at all and all interest was taxed at your marginal rate and, further, that the banks etc handed over the first 20% of it to the taxman at source (unless you jumped through some paperwork hoops). Remember that!

That miserable allowance gets more miserable the year after.

Is that 'cos you'll become a higher rate taxpayer then, or are you getting it confused with the dividend allowance?

[Lootman]

Yes, all the same that brings me very close to the pathetic £1000 interest allowance.

It's (pun intended) interesting how the fairly recently (2016) introduced change of having any allowance at all for savings interest has so soon become "pathetic". 'Twas only 8 years ago that there was no allowance at all and all interest was taxed at your marginal rate and, further, that the banks etc handed over the first 20% of it to the taxman at source (unless you jumped through some paperwork hoops). Remember that!

That miserable allowance gets more miserable the year after.

Is that 'cos you'll become a higher rate taxpayer then, or are you getting it confused with the dividend allowance?

Yes, as best I recall there are no allowances in the US for interest, dividends or capital gains. You pay tax from the first penny, aside from your personal allowance. I suspect that the UK will end up the same.

For a lousy £100 I am not sure I would want all the faff of switching my current account to another bank. They might as well just offer £100 for switching and leave it at that. This endless jumping around for a bit more interest strikes me as exhausting, especially since the headline teaser rate is only on relatively small amounts.

[Gerry557]

Mcfool, yes I could be misremembering my tax allowances. Is the cash one staying at a grand and the divi one reducing to £500.

So much for tax simplification.

I was reading earlier that they are looking to change/simplify isa's. Mainly to try and get more investment in UK stocks. Talk of additional allowance and possibly scrapping other bits.

Wasn't telling endowment providers that they had to move away from stocks to bonds the start of these sort of problems or I'm I misremembering again.

[mc2fool]

Mcfool, yes I could be misremembering my tax allowances. Is the cash one staying at a grand and the divi one reducing to £500.

That's the current plan, but as they say, past promises are no guarantee of future results.