OT: Building society savings rates

Is this really true??
I rarely miss an opportunity to have a grumble to my BS about their savings interest rates when I message them but this part of their reply was a new one on me.
"With interest rates we are given a maximum and minimum amount we can provide for certain types of accounts, this isn't determined by us but rather the HMRC "
Anyone else come across this?
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On Fri, 10 Feb 2017 09:44:03 +0000, Bob Minchin wrote:

I've never heard that one before! Unless its something to do with business accounts?
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Mark Allread wrote:

No it is related to a personal, so called loyalty account that pays 0.75% to members with over 15 years standing with nationwide. My main grumble was that they cap it at 50k and I need short term, safe easy access home for house sale money so I don't lose out to inflation. the best they could offer on the balance over 50k was 0.1% !!!
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On Fri, 10 Feb 2017 11:55:04 +0000, Bob Minchin wrote:

Try NS&I - no limit on what you can invest (AIR) and whilst the interest is not stunningly high it is very safe way of saving as there is no 'protection cap' as there is with banks/building societies. It is run and owned by Government hence the lack of protection cap as it is not a bank or BS. Its ideal for a short-stop house sale/purchase scenario. You'll still lose out to inflation (both RPI and house prce) but you will mitigate some of the loss.
Re the HMRC limit I'd go back to Nationwide and ask them for the evidence to back up their claim. That is, if you can be bothered.
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you have zero chance of achieving that
tim

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On Friday, 10 February 2017 11:55:11 UTC, Bob Minchin wrote:

A problem for all of us that aren't poverty stricken chavs. I downsized houses thirteen years ago from a five bedroom house and fifty acres to a twoand a half with 2 acres.. I got solar panels and a heritage car.
I suppose the other thing is buy to let housing. But lots of hassle I fancy.
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After serious thinking Bob Minchin wrote :

I was informed a month ago by the TSB that their interest rate on my savings accounts with fall to 0.05%. Since when I have been looking for an alternative place to lodge a good sum of money. Today (via the MS) I found an account at www.westbrom.co.uk which pays 1.05% on an account with £1,000 to £250,000, with instant withdrawal and online banking. Their Bonus Saver 2.
You transfer to and from your normal bank account, which is essential.
Talking of which, is their any point at all in a pensioner having an ISA account?
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On 10/02/17 19:15, Harry Bloomfield wrote:

Yes, if they pay income tax - particularly if they pay at the higher rate.
--

Jeff

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On Fri, 10 Feb 2017 19:23:14 +0000, Jeff Layman

Not necessarily. You now get a personal savings allowance of £1000 a year tax free (up to £5000 if your income is less than £16,000). At 1% interest you'ld need £100,000 of savings to pay tax on isavings interest.
It's still £500 a year if you're a high rate tax payer, so ISAs are only worth it if you are very wealthy and then I expect you would be able to find much better investments!
https://www.gov.uk/apply-tax-free-interest-on-savings/how-much-tax-you-pay
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On 2/10/2017 7:49 PM, Bill Taylor wrote:

Don't they also save you from the faff of CGT, if you are using trackers?
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On 10/02/2017 19:15, Harry Bloomfield wrote:

Well they seem to have slightly higher interest rates than the non-ISA savings accounts.
--
Max Demian

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On 10/02/2017 20:11, Max Demian wrote:

I'd guess that for most, ISAs are pretty much irrelevant anyway:
https://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance
--
Cheers, Rob

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Max Demian formulated on Friday :

Not in the case of my account - my TSB Cash ISA account is presently paying 0.05%. Exactly the same rate as my eSavings account with them, hence my looking around for something with a better rate.
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On 11/02/2017 08:35, Harry Bloomfield wrote:

I think Santander is 0.5% and Barclays 0.6% (easy/flexible access). But they keep dropping the rates.
--
Max Demian

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On 11/02/17 15:16, Max Demian wrote:

It's always worth noting that *if* you are lucky enough to have >£10k ish to save, premium bonds will return around 1% tax free over reasonable periods. I did the calculations out of interest and once you are in the region of £30k, you can expect regular £25 prizes tending to average to the design yield (little over 1% ATM). £10k will work too, but you may have to ride it for a year to get the average. The full £50k should see average returns over a couple of months.
And you get the extra fun of "maybe £1mil"
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Tim Watts wrote:

This is a bit of a fallacy.
Whilst the average should work out to be the stated figure, you have to take all the high value prizes out of the prize kitty first and then distribute the remainder amongst the the remaining drawn numbers.
I've had £30k in since 2009 and not got near the published figures.
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On 11/02/17 19:18, Bob Minchin wrote:

It's sound calculation (happy to share my Google Sheet with you if you want).
Based on the May 2016 prize distribution, the £25 prizes form 83.89% of the total prize pot so everything hinges on them and they are the most numerous.

You *should* be taking 1-2 £25 prizes per month (May 2016) - an average of £325 per annum. What were you getting last year?
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On Sat, 11 Feb 2017 19:48:15 +0000, Tim Watts wrote:

In 2016 I had £450 on £50k, 0.9%. That's slightly less than Loyalty Saver's 0.95%; LS has now dropped to 0.75%. Loyalty is one-way, it would seem.
--
Peter.
The gods will stay away
  Click to see the full signature.
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I had 30k in and got sfa over 12 months.
--
bert

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On 12/02/17 21:42, bert wrote:

You should have got around £275 in one year (based on 2016).
What did you get?
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