Abbey National plc interest paid / earned


M

Mitchum

Although the amounts are relatively small (for me at least!), I've just
noticed that when I earn interest on my in-credit bank account, but slip
into the red for one or two days a month, I get charged interest, but it is
not netted off the amount I earn, with the result, I end up paying more tax
than I deem is really necessary. Surely it would be better for customers if
Abbey netted off the charged interest against the earned interest. Is Abbey
National working for Gordon Brown?

Other than those banks that operate offset against (which are mainly to do
with mortgages), are there any banks that offset offset bank accounts
 
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J

john boyle

Mitchum said:
Although the amounts are relatively small (for me at least!), I've just
noticed that when I earn interest on my in-credit bank account, but slip
into the red for one or two days a month, I get charged interest, but it is
not netted off the amount I earn, with the result, I end up paying more tax
than I deem is really necessary. Surely it would be better for customers if
Abbey netted off the charged interest against the earned interest. Is Abbey
National working for Gordon Brown?
HM Revenue & customs rules do not allow Debit Interest to be offset
against Credit Interest in the way you describe.
Other than those banks that operate offset against (which are mainly to do
with mortgages), are there any banks that offset offset bank accounts
Offset mortgages dont do it either.

They offset two or more accounts. They set off debit balance on Account
A against the credit balance on Account B on a daily basis and either
charge or pay interest on the net balance. In your original example you
had only one account and you were in credit some of the time and debit
the rest. You cant be credit & debit on the same account at the same
time and so with just one account there is nothing to offset against.
 

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