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I just want to know if your interest on your savings account is 6.5%, is that the percentage after tax or before tax?
Anyone remember white dog poo?
you must know the answer to this
so you wouldn't actually get that much each month then
of your savings is, then they'd take 20% off that amount and then it would be added to your account, right?
You bank will calculate the interest on the savings in your account. They may do this daily, monthly or yearly. This amount is then added to your savings. At the end of the financial year the Inland Revenue deducts the appropriate amount of tax from your account. The bank and the Inland Revenue do all the paperwork, you do not need to do anything.
One last question (i'm not trying to be annoying) how will that show on your statement?
send you a statement of your tax deductions every April.
The interest gained on saving is taxed, not the savings themselves.
Unless you have an ISA, a pension scheme or a TESSA, in which case they're not taxed.
how is it taken out? i've never seen any payments going out of my savings account, so i assume it is just taken off and never mentioned? And no - i don't have heli-parents. I'm just a bit slow apparently
how's it taken out
There is usually a deduction in your bank statement (well, there is for me anyway).
Some banks may work out the tax at the point of awarding interest, and so it may be factored in then.
and I'm trying to work out how they get it
from Bradford and Bingleys online account.
and the cash ISAs from Barclays (brach) and Alliance and Leicester (online) are both pretty good if you haven't used your allowance yet.
i need to sort my finances out next week in preparation for being a penniless student.
i realise that wasn't the question. i've just been trying to get all this sorted in my own head for next week, so it was on my mind.
i should be able to get an interest free outdraft and put that all in a savings account right? i think so!
how much do you think you'll make?