WHAT HAPPENS TO MY INTEREST FROM 6 APRIL 2016?
In March 2015, the government announced that a “Personal Savings Allowance” would be introduced from 6 April 2016. From that same date banks and building societies will no longer deduct tax from payments of interest to their depositors. Therefore, from 6 April 2016 Harrods Bank Limited will not deduct tax from credit interest payments.
The new Personal Savings Allowance will allow most UK taxpayers to earn tax-free interest across all their savings. If you're a basic taxpayer, the first £1,000 of interest will be tax-free. For higher rate taxpayers the allowance is £500. This Personal Savings Allowance will be applied automatically on 6 April 2016, and if you would like more information, including what to do if you earn more than £1,000 of interest in a year, please contact HMRC at www.gov.uk
. Please note that we are unable to provide tax advice.
CAN I GET ACCESS TO MY FIXED RATE DEPOSIT? I’M HAPPY TO PAY A PENALTY OR FOREGO INTEREST.
Once a fixed rate deposit is opened, it is not possible to access the deposit for the duration of the term. In the event of the death of the account holder, upon production of Grant of Probate then early access will be permitted, if requested.
CAN I MAKE MORE THAN ONE DEPOSIT?
120 Day Notice Account – Yes, you can continue to add to the account once opened, for as long as the account remains open for funding.
Fixed Rate Deposits – Customers can only make one initial deposit. However, further Fixed Rate Deposits can be opened, while the products are still available, so customers wishing to make payments at different periods of time can open more than one Fixed Rate Deposit for the same term.
WHEN DOES THE INTEREST GET APPLIED TO MY ACCOUNT?
18 Month, 1 Year, 2 Year, 3 Year and 5 Year Fixed Rate Deposit – Interest is paid annually on 31st December and at maturity.
120 Day Notice Account – Interest is paid quarterly on the last day of the calendar quarter.
WHERE DOES MY INTEREST GET PAID TO?
Fixed Rate Deposits - interest can either be added to your Fixed Rate Deposit or paid to a Call Deposit Account that will be opened to accept your initial deposit for your Fixed Rate Deposit Account
120 Day Notice Account - interest will be added to the account.
WHAT IS A CALL DEPOSIT ACCOUNT AND WHY DO I NEED ONE?
Customers wishing to open a Fixed Rate Deposit Account will automatically have a Call Deposit Account opened for them. This is to receive the initial deposit for the Fixed Rate Deposit, to receive interest if annual interest is requested and also for the maturing Fixed Rate Deposit to be paid in to. It is not possible to make transfers direct to/from the Fixed Rate Deposit which is why the Call Deposit Account is used. The Call Deposit Account is an instant access account, and if you do not wish to leave your maturing funds or interest with Harrods Bank you can transfer the funds from the Call Deposit Account to your nominated account. You will need to provide us with details of your nominated account in advance of any transfer.