Non-interest bearing accounts

HSBC don't pay interest on their ordinary account.

But why would you turn your nose up at a massive 0.1% elsewhere?

Yes, a fair question. The money that will go into such an account is in trust and, given that interest is minimal, the hassle of annual tax returns will be eliminated. Having said that, the account does need to be OK for trustees.

The remainder of the trust monies are invested in non-income producing products.

Rob

So, the trustees are empowered to lose money on behalf of the trust - as it certainly will, however low inflation is, if invested in a non-interest bearing account? And, what, precisely, are "non-income producing products"?

I'd tread very carefully if I were you. Find out the precise aims and objectives of the trust, before deciding that you can't be bothered to send in tax returns because they're "too much hassle"!

Only a small bit. Why involve annual accounts for about a fiver?

And, what, precisely, are "non-income

Life insurance bonds

Not my trust.

So why are you asking the questions, and what, precisely is a "life insurance bond"?

A single premium investment into a life office's funds.

Hey, why are you asking me these questions? I posted in the hopes of receiving replies from people who know.

It is a good idea if the cost of doing the tax return is more than the interest received.

Well yes. But they don't want to bother with a tax return unless there's a considerably forceful argument in favour of it.

Most banks will give you a non-interest bearing account if you ask them. There are quite a few people who's deity forbids them from receiving interest and banks are geared up to cater to them.

Absent specific requirements to the contrary, trustees are under a duty to invest in safe investments but ones that are expected to produce a return on the investment. To deliberately choose accounts with no interest, I think one would need specific wording in the trust deed.

There are some statutory trusts that are, or at least soon will, be limited to specific savings account investments only. I'm thinking particularly of service charge funds for flats. IR/HMRC did, at one time, try to tax these as trusts with a power to accumulate, but seem to

have given up on that, presumably because there was virtually nil compliance on people submitting trust income returns for these.

Nationwide does not pay interest on its current account

First Direct also doesn't pay interest on its current accounts (which isn't a great surprise given that it's part of HSBC).

As another poster has said, you could also look at Sharia accounts - I know Lloyds offers those. Watch out though, some Sharia accounts don't pay 'interest' according to the Sharia definition, but they do provide an 'investment return' - which for your purposes is going to cause just as much trouble as interest.

I assume that the reason you want a bank account in the first place is that the money needs to be easily accessible - is that the case? If not, would it be worth finding a life assurance bond with high initial allocation rates, choosing a cash fund, and then leaving it there for five years/until you could withdraw it without penalty?

Isn't that just the most wonderful religious contortion?

I love it.

In message , Smith writes

They did last year, on my Flexaccount.

Check the following link!

In message , Smith writes

So I see. I received about £18 last year.

I downloaded a large PDF file this week which I need to digest. I assume it is a result of the European Bank ordering a different approach to disputed transactions.

They say that the customer account should be credited with the disputed amount unless and until it can be proved that the customer was negligent, but financial commentators were very sceptical whether it would happen in this manner...

I don't see the relevance to disputed transactions as financial institutions are free whether to pay interest or not

Nationwide don't pay on their current account anymore.

They did send out a letter.