Zopa Bank - Fixed rate a/c ending and tax issues

🙄

It’s “zopa paid interest”



I don’t have Z fixed savings, aju. It’s a bit unfair when the interest paid monthly on your statement, I say.

Not sure if it’s worth a complaint if the Ombudsman decides to side with Z. FCA won’t even take a look on their T n C.

Thanks I struggled with this and think its technically not her interest until the account is fully closed and paid up. So by that definition the interest is received in the tax year Zopa pays the WHOLE amount back her and the account is closed since she cannot use the interest and worse it would reduce the interest she received if she could remove and did so - not by much though!. 

To be fair she does not pay tax at present so it was more an academic question but she will be next May when she starts receiving UK NSP. I take some of her tax allowance as her hubby at present to limit mine but I just wanted to know what the tax implication might be. If we take a further fix from Zopa - at present we are biding our time to see what other offers there are (Still not sure about play P2P since the downturn) Whilst the rates of interest available are very low at present they are improving - well normal rate, ISA rates seem to end up with lower rate meaning the bank taking the ISA benefit for themselves.

Terms are not “comparable” to mainstream banks IMHO.

I am about to get what they mean written on the web.



Everything, fixed, know. 🤣🤣🤣

I was going to poke them but thought its only fair i read the current t&c's (No we didn't read them when rates everywhere were lower as she wasn;t going to be paying tax anyway.

So here's the item i should have looked at
That covers it in my view, I'll take a copy of the whole t&C but i guess the moral of this one is read the manual. As an ex s/w developer I should have known better. 

The closing statement from ZOPA covers this. It says ‘This is a statement showing all interest paid on your Fixed Term account. You only need to consider tax on your earnings in the tax year that your Fixed Term account ends. No tax has been deducted by Zopa.’