Who knew

Strangley enough,i had a savings account and when my card expired they told me they don`t give new ones out so i have to go into my current account to access my savings,bluddy stipid idea imo.

You can earn up to £1000 a year interest on savings tax free (more if you're on a low income) .
I move my accounts regularly to take advantage of offers and have never been asked my tax status as I don't have the huge amount needed to generate £1000 interest!!

I've got a savings account but it was started years ago when I was a tax payer. When I took out a lifetime mortgage recently I had the money paid into my current account and then transferred it to the savings account. No mention was made of money laundering.

The relevant thing is that only savings accounts accrue interest.
Which is taxed. So perhaps if the person doesn't have a tax history it becomes complicated both for the bank and HMRC ?

Direct debits aren't charged for but companies usually charge extra to spread your payments over 12 months: £40 a year, £3.50 a month.

M0nica

MawtheMerrier Some people move money into savings accounts to pay bills from rather than pay over the odds for monthly direct debits.

My direct debits cost me nothing - who charges for them these days? (Other than for business accounts)

Nina, are you sure the bank haven't made a mistake? Ive never heard of this.

MawtheMerrier Some people move money into savings accounts to pay bills from rather than pay over the odds for monthly direct debits.

Opening a new bank account theses days is a pain in the backside because of the new regulations also the bank itself has a lot of admin to maintain the account so they may not be keen on a new account for small sums.

MawtheMerrier

I find it confusing but am full of admiration for anybody whose income is below the tax threshold and can still pay into a savings account

Doesn’t that depend on what went before though? Someone who has earned a salary for years, and built up some savings may retire onto a pension below the tax threshold but still have a bank account. Why wouldn’t they?

My mum lives on the State Pension and some Pension Credit. She squirrels away a bit each month into a rainy day account so she has something to fall back on. She lives very modesty, although not without pleasures, and has always been excellent with money.

I find it confusing but am full of admiration for anybody whose income is below the tax threshold and can still pay into a savings account

Yes, in the UK banks have to give all details of interest earned to the tax authorities. That is why most of us do not need to do tax returns every year, because all our income comes from a known source, whether income or interest and every financial institution has to send all the information to HMRC

I don't know if it's the same here, but in France if you have a savings account at your bank they are legally obliged to inform the tax authorities of any interest accrued on that account.
This interest is then added to your earned income.

The OP doesn't mention whether she was doing it online or in the branch. But online I would expect them to say that the documents are needed and need to be taken to a branch.

Yes Monica If you don’t have a tax account other documents are acceptable but it may be necessary to produce them in person.

Lots of older and young people have incomes below the tax paying boundary and nearly all of them have bank accounts.

Personally I would question it, all the way up to board level if necessary. I think someone in the bank didn't have a clue. I find it very depressing how many staff in financial institutions fail to know or understand what the law is or how to apply it.

Sorry, ninathenana for mangling your name !

Might it be connected to ID verification ninayhenana? I’ve had a verified Government Gateway ID for years, and it makes things like opening a bank account and passport/drivers licence renewal much easier. Anyone who files a tax return will have a Gateway ID. Mr. B didn’t, he retired early due to ill health, and he had to take lots of paperwork into his bank when he wanted to open a savings account. He’s had a current account with them (RBS) for years. It is to prevent money laundering, as a previous poster said.

Hi nina.

DH and I have had various accounts with LloydsTSB for 40 or so years including one that received his payments from the NHS over that period. When he tried to pay in his NHS Pension lump sum he had to have an appointment withe the branch manager so they could check whether he was money laundering!!

This was with HSBC DD was trying to do it online for me. She likes doing admin. She tried an instant access and another type and both were refused.
We put DH's redundancy/retirement lump sum in my name as I don't pay tax. I have never earned enough. This was 14 yrs ag9

I don’t know where to live but I was forced to close my 50 year building society account because I live in France. However, HSBC offered and I accepted to open a new monthly savings one.

This sounds really strange. I've had a current account, but no savings account, with my bank for decades and they're constantly emailing me with invitations to open a savings account with them. I pay no income tax either.

Germanshepherdsmum

Is there more to it? You have savings but you say you don’t pay tax. Is your income below the tax threshold?

You could be below the tax threshold but have taken out an ISA because it gives a better rate of interest than other accounts or because having taxable savings could bring your income over the threshold.

I've got two accounts with my bank I've had them both for over 50 years ,I wanted to open a new account last week and had cash I wanted to pay in to it I was told I'd have to make an appointment for an hour to "watch a video on how to run an account" I declined .
Surely as I've been running two accounts for half a century I understand how to run an account!! I came home and opened it online at the same bank and it took less than 5 minutes .It makes no sense at all that the staff IN the bank dont appear to know the workings of it.