Interest Paid Gross

National Savings offer one of the few safe investments which still pay interest 'gross'. Building societies, local authorities and banks all now pay interest as if you had already paid basic rate income tax on it.

If you do not pay tax, it is advisable to have some money invested in National Savings where the interest is paid gross.

For example, a married man of sixty-six gets the age allowance of £9 ,069 . If his retirement pension is £69 .90 and his company pension is £18.66, his annual income is £8,068. That means that he can have £967 free of tax.

So he could invest enough capital in National Savings which pay interest gross to give him £967 and put the rest in a building society or in a tax free National Savings product.


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or Deposit Bonds

Income Bonds

/retirement/pensions/income/advice/income-bonds.php... see: Income Bonds