Some banks are easing rules over access to cash in fixed rate bonds
TRICIA PHILLIPS
Q A
ONCE money is deposited into a fixed rate bond normally you are not allowed to access your savings until the bond term has ended. Some bonds do allow earlier access, but this usually comes with an early access penalty. However, many high street banks have been allowing customers to access deposits in fixed rate bonds if they need emergency money during the crisis. Contact your bank to see if you can access your money in this circumstance.
Q A
IN the spring budget, the Government increased the tax-free allowance on Junior ISAs (JISAs) from £4,368 to £9,000, making these highly attractive accounts to use when saving for a child’s future. Currently the top JISA rate stands at 3.25% gross from National Savings & Investments, TSB and Santander.
Q A
THIS will depend on the type of account you choose and the amount of interest you earn. If you have an ISA and keep within the £20,000 tax-free limit for the 2020/21 tax year, you won’t have to pay tax on interest. If you open a non-ISA savings account as a basic tax payer you will have to pay on interest earnings over £1,000. For higher rate earners, tax has to be paid on interest earned over £500.
Q A
THERE is still a wide range of options for those wanting to open and manage accounts in other ways. For example, Penrith Building Society pays the top easy access ISA rate of 1.25% on its ISA Issue 2, which can be opened and managed in branch or by post. For those looking to open a non-ISA, National Savings & Investments pays the top rate of 1.15% gross monthly on an easy access account which can be opened and managed by post and by phone.