@Edent I don’t know the situation in the UK, but in Sweden you would have to pay taxes on the money earned from interest. So the interest rate needs to be somewhat higher than the inflation to even out.
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@Edent I don’t know the situation in the UK, but in Sweden you would have to pay taxes on the money earned from interest. So the interest rate needs to be somewhat higher than the inflation to even out.
@jcbsv The first £1,000 of interest is tax free.
You can also shelter up to £20,000 of capital per year in an ISA which is also tax free.
Basically, you have to a huge amount of savings in order to pay income tax on your interest.
@Edent
Savings interest rates are pretty pitiful. Our Halifax account was paying 0.25% in recent years. It's now up to 1%. I pretty much figured it's not even worth bothering to account for.
HSBC ISA is saying 2.5% at the moment. Still pretty pathetic.
@robert I don't mean to sound like a victim blamer - but just move your account.
Bank account switching is easy and free.
Transferring to a better savings account is quick and painless.
There are loads of accounts paying significantly more than that.
https://www.moneysavingexpert.com/savings/best-cash-isa/#topeasy
@Edent
Yeah, it's one of those long-standing "I should really do that" tasks. Mind you, we don't really have anything significant in the way of savings, so the monetary difference isn't all that much at the end of the day.