Helen1964

Afternoon everyone.

So much for my good intentions to simplify my financial affairs.
Yesterday I opened a couple of savings bonds with NS&I. It was actually very, very easy to do and the interest rate is 6.2% for the 1-year bond.
So even after the French tax it at 30%, there should still be a nice amount of interest in one year's time.
My question is, when should I report this interest to the French tax authorities?
From what I gather, the sum will not need to be declared to HMRC because, under the tax treaty between the UK and France, interest from UK bank accounts is taxable in France, not the UK, if the person concerned is tax-resident in France.
It will,however, need to be reported to the French "fisc".
Normally, I would just wait and do this in the annual tax return.
But I did notice a few articles on the internet - published by people like the accountants Bevins - to the effect that any such interest must be reported to the French tax authorities within 15 days of being paid out.

It's a few years since I had any bank interest worth talking about and, back then, I definitely waited for the annual tax return, to report it.

So my question is:
1. Do I in fact need to declare the interest within 15 days of its being paid out?
and
2. If so, how does one do this? Is there some way of reporting it through our "espace particulier"?

Many thanks in advance for your thoughts and advice.

Listen Very Carefully

I do not have a UK bank account now but in the past I did have offshore savings ie Jersey and IOM,I just reported the interest gained in the normal way with the tax return but that may have changed of course as I only have a french account and a Wise for currency transfers
As always check with your friendly local tax person

bazzer70

Hi Helen - I don’t know the answers but I hope you don’t mind me asking a question about the 6.2% bond…. 3 of my UK banks have told me they are going to close my fixed deposits with them - rather pleased as I can now reinvest at a better rate!
my question is: if I will have say £3x to invest over a 3 week period say, can I add money in dribs and drabs and if not can I buy bonds as and when? Or will the want it done in one single operation?

Helen1964

Hi Bazzer

There are a few caveats to note.

First, you must already have a traditional UK bank account in order to be able to open an NS&I account.
They won’t accept money from - or pay money into - a Wise account, for example. Or from/into an offshore account.

If you’re stuck, a friend opened a Basic Bank Account with HSBC UK the other day. They know she’s resident in France.

The second point to note is that occasionally we have problems receiving the security code, which is sent by phone.
The problem only occurs now and again and always with our iPhones. The phone rings, the automated voice tells us to press the hash key, we do and nothing happens.
Luckily you can store 3 phone numbers with them. So maybe make sure one is a landline number. French numbers work fine. But be sure to spell out the numbers exactly as someone in the UK would need to dial them (complete with the code and omitting the first zero - don’t assume they’ll automatically know to drop the first zero - in my experience, they don’t).

The third point is - do NOT open a joint account. Everything involving the second account holder has to be done by post and setting up the account for them takes MONTHS. Open separate accounts for yourself and your spouse.

I first opened a Direct Saver account. You can pay money into that in dribs and drabs.
I then opened a bond for each of us. Using money from the Direct Saver account.

Good luck!

Helen1964

Forgot to say - the UK bank account that you nominate when you first open the Direct Saver is the one that must be used thereafter to pay money in and take money out.
So make sure there’s no danger of it being closed in the foreseeable future.

bazzer70

Thanks but can I make multiple deposits?

Helen1964

Yes, you can pay the money into the Direct Saver account in dribs and drabs, ie multiple deposits. Whenever you like. And withdraw it whenever you like. In multiple transactions. Like any old-fashioned savings account.

With the bond, obviously, you're locked in for the term of the bond. Right now, they have a 1-year bond which pays 6.2% gross.
And a 3-year bond which pays a bit less.

bazzer70

It’s the 6.2% bond I am interested in - I know with ordinary easy access accounts you can add money any time you want - hopefully I can add to the 6.2% account as and when - which is what I was asking. I realise there are No withdrawals until the term is up. Thanks anyway.

Helen1964

No, you can’t pay more into the bond once you’ve opened it. It’s one initial payment and that’s it. Or at least I think that’s how it works. Now you’ve got me wondering!
Certainly there’s nothing to stop you opening MORE bonds…..

Helen1964

OK I just checked their website. Here’s what it says:

• Can I top-up a Guaranteed Growth Bond I’ve already bought?

  No, once you’ve bought a fixed-term Bond, you can’t add any more money to it.
  
  You can buy more Bonds though if they are still on sale, up to a total value of £1 million per person in the current Issue.
  
  Each Bond you buy is a separate investment with its own maturity date.
  

bazzer70

Thanks again Helen - I’ve read through all the conditions etc but it certainly isn’t clear. As said my dosh will be paid out in 3 stages so am reluctant to leave it in low interest easy access if I don’t have to.

Helen1964

It’s pretty simple really.

Open a Direct Saver account. I was able to do this over the phone- I got my NS&I number and internet access to the account straightaway.
Think I had to send them some ID verification documents by post in the meantime.

Once that account is up and running, you can pay money in or withdraw it whenever you like. It pays interest. (check the website for the exact figure).

Whenever you feel like it, you can then open any number of bonds. If you want a better return.
So if you’re expecting 3 big payouts, for example, just open a bond for each one.

I used to have savings bonds with the Nationwide and they functioned exactly the same way as the NS&I ones, ie you can’t top them up. And you can’t access the money early.

But I repeat: DO NOT OPEN A JOINT DIRECT SAVER ACCOUNT OR JOINT BONDS!

bazzer70

Thanks again - hope they’re not withdrawn before I get the dosh! Have a good weekend!

bazzer70

Just a heads up….
I opened an NS&I bond today -
​​​​​​— they only accept payments by debit card so I spent 20 minutes on phone to Halifax to get this temporarily raised
— after opening it it gives you the opportunity to open more bonds - good news
— just from Daily Mail - who are quite often right - this bond deal is due to be withdrawn soon!
my other 2 banks who are closing my accounts haven’t done so yet so hopefully the NS&I keeps going a bit longer
good luck

Helen1964

Here’s another option for someone wishing to keep savings in sterling. Again, you must already have a UK current account.
The big drawback for me would be that they require you to have a UK mobile.

https://www.investec.com/en_gb/savings-accounts.html