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Legal & money

Who knew

(30 Posts)
ninathenana Fri 28-Jan-22 14:25:19

Moved some money from one account to another yesterday and wanted to set up a savings account with a bank I've been a customer with for 10 years. Apparently I can't open a savings account as I'm not a tax payer, who knew ?
So now have to move it again to our joint account as DH is a tax payer and set up savings from there.

Beechnut Fri 28-Jan-22 14:36:09

Is this something new ninathenana ?

Humduh Fri 28-Jan-22 15:08:24

I find bank rules very odd sometimes

Wheniwasyourage Fri 28-Jan-22 15:12:38

Sounds very strange. Is it a big bank? Building society?

Germanshepherdsmum Fri 28-Jan-22 15:16:37

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

mumofmadboys Fri 28-Jan-22 15:18:16

That sounds very odd!

paddyann54 Fri 28-Jan-22 15:22:36

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.

Callistemon21 Fri 28-Jan-22 16:22:25


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.

Chewbacca Fri 28-Jan-22 16:28:31

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.

mokryna Fri 28-Jan-22 16:29:02

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.

ninathenana Fri 28-Jan-22 17:33:24

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

kittylester Fri 28-Jan-22 17:40:17

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!!

Blossoming Mon 04-Apr-22 19:02:57

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.

Blossoming Mon 04-Apr-22 19:04:07

Sorry, ninathenana for mangling your name !

M0nica Mon 04-Apr-22 19:50:23

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.

Blossoming Mon 04-Apr-22 20:02:37

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

M0nica Mon 04-Apr-22 20:07:58

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.

Fennel Mon 04-Apr-22 20:11:55

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.

M0nica Mon 04-Apr-22 20:16:39

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

MawtheMerrier Mon 04-Apr-22 20:17:25

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 confused

SueDonim Mon 04-Apr-22 22:00:59

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.

Doodledog Mon 04-Apr-22 22:18:05


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 confused

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?

Katie59 Tue 05-Apr-22 08:59:40

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.

M0nica Tue 05-Apr-22 09:07:38

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

Pepper59 Tue 05-Apr-22 09:58:27

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