weener

Hi (again)

I have a few Isa's here in the UK earning a tax free interest at 5%. Is there anything scimilar in Canada and can you have the interest paid to a seperate account on a monthly basis?

CDNReturner

I think the answer is 'NO' to everything.

Madmac

They do a savings account at TD that allows you to pay the interest into another account on a monthly basis. Can't remember what it's called but it's a bit like our old 3-year bond accounts.

Here's the killer though - they pay out simple interest!!!!! Ha ha. Nearly expired when I heard that. The guy was trying his best to be professional as well.

Just get used to the fact that Canadian banking is not even close to what you get back home. You'd be better off investing in unethical shares or sticking it into a pillow case under the bed.

We've kept our Nationwide accounts open and most of our cash is over there earning decent interest along with the rest of the investments.

willmore

Both manulife and ING pay better interest on saving accounts. Google them for details.

There is also a credit union in Manitoba that is paying 4.5% interest on saving accounts and good rates on GIC.

wizzard

If you stick mor ethan $1000 in a President's Choice Interest Plus savings account they pay 4% which isn't bad for a no fee regular savings account.

weener

Thanks for all of your replys, do you pay tax on these accounts......

celine_uk

yes you pay interest :scared:

willmore

Of course, this is canada you know!

weener

How does it work if you kept some saiving in a Savings account in the UK, Could you have the interest paid into a Canadian account.......Or is it best just to leave it and withdraw the money when ya come back to the UK and bring it back with you...

Novocastrian

Huh? If you remove the interest from the savings instrument to another account as soon as it is generated (ie monthly), then how the hell can it compound in the first place?

iaink

If you are serious about saving you really need to get it in a RRSP here (which sucks if you are a temporary resident as you cant do that). At least that way you only pay tax on what you take out.


What are the UK tax implications for leaving money in a UK account and using the interest for income? Do you still have to file a UK tax return...even if you dont end up owing them anything under the taxation treaties?

Madmac

Got mixed up with accounts we have (4 or 6??? in total) so apologies on that. That happens with one that is locked in for two or three years - simple interest on that. Ho hum.

I don't do the money in our house - obvious innit? Thanks for being so understanding and restrained.

Novocastrian

You're welcome.

CDNReturner

Try and save in an account with a proper bank such as First Direct and ensure you fill out the non-resident form then tax won't be deducted at source in the UK. If you don't do this you end up in a double taxation mess like I did as you can only claim having paid tax in the UK already for a certain percentage (and this is some weird calculation) of your world-wide income. You have to claim the interest income earned in the UK on your Canadian tax return.

The interest my savings earn in the UK is paid monthly and I withdraw it from First Direct via a Bank of Montreal ATM here (this covers some of my monthly cash expenditure). The exchange sucks and you pay 1.5% commission I think but I have to balance that out with the better interest rates over there.

I use the e-account with First Direct paying 4.75% and have them divert the interest to my First Direct chequing account. (If you withdraw from the e-account you don't get any interest that calendar month so it saves me from touching that account).

Cathie