Fixed Term Deposits - quick question re. Lowest tax rate ?

[maura]

I noticed this under fixed term deposits state savings certs and bonds.

• A normal deposit account would need to be paying 2.06% to match this rate if you are normally taxed at 41%.
• A normal deposit account would need to be paying 2.20% to match this rate if you are normally taxed at 45%.

What about people normally taxed at 20% ?

 

[Lightning]

T-B-M - Exactly.

What about people normally taxed at 20% ?

Nobody is taxed at 20% on deposit interest. You are taxed at zero or 41% or 45%. There is no other rate band.

20% is a rate in the context of income tax but not in the context of deposit interest tax.

 

[maura]

Thanks for the answers, feel a bit silly now for not figuring that one out.