Rhys

Right then for the people who know..

Once you get over a certain limit in savings do you then get taxed on the interest earned? Just because i have got some savings in diff accounts and have clumped some together in one accout. Not this month i have had some tax debited but have not had this before. Im not sure if this company just shows it on your statment and others auto deducted etc?

sabres74

Your interest is taxed automatically at the standard tax rate by law by all financial institutions.

The only way to receive tax free interest is to fill out an Inland Revenue form to enable you to receive the interest tax free. This can only be done if you have no other earnings as the limit is just under £4k. It is useful if your wife does not work and you put the savings in her name to get the interest tax free.

gurnE

The threshold will depend on your personal allowance.

You'll need to fill in an R40.

http://www.direct.gov.uk/MoneyTaxAnd...651&chk=smJbXt

MadMac

All normal banks personal savings accounts are subject to tax.

But as above if you earn less than 4k you can apply to be tax exempt.

ISA's are however not as your limited to how much you can invest. Now depending on who you open an ISA with the amount vary. But typically its 3/4k.

You can save tax free in shares too, but usually these shares will need to be kept for three years. You also have to be quite clever on where you invest it.

Rhys

Hmmm cheers lads!!

Will see if i can stop paying tax even if its only for couple of months while im a student. Its not a lot but every £ helps! I will hopfully be earning come july as i finally finish 4 yrs of uni!! lol

Will fill that tax form in later, at the end of the day worse they can say is no. Its hard to work out if im eligible or not as i work in the summer etc. and i know i earned overf my tax limit in 4 months so dont think i will get it, but will double check.

I dont really want to lock the money away (want house soon!) and its more than 4k unless i could have a few ISA? I have just opened the ICICI bank account as they was a good interest rate which u can access the money easily if need be.

gurnE

No, you are not eligible then.

Rhys

Didnt think so!

Felt better when they taken the money out and not showed it on my statement Bastid government

gurnE

Shut it you sponging student

MadMac

You can open a maxi isa, but you're only allowed to invest your max amount once a year. I believe they have changed the amounts slightly (used to be 3 or 6k) so you can have an account with a limit of either 4 or 7k.

check out www.moneysupermarket.co.uk for more info & a comparison of interest rates.