DIRT

ajmull

If you close a deposit account before 1st January, will you pay DIRT at the old rate or the new rate??

Anyone

Dirt is paid when the interest its received, so it depends on when its credited to your account. Any interest received after 2014 will be subject to DIRT at the new rate.

ajmull

Thank you Anyone. So, if I close the account and receive interest in 2013 I will pay DIRT at the old rate? Nothing to stop me opening a new account in 2014?

Anyone

It depends on the type of account you have, generally most financial organisations pay interest annually. Its up to them when they pay it, so you might close the account in 2013, but you might not get the interest until 2014.

JTMan

Interest is paid:
(1) On maturity or
(2) On a fixed frequency normally annually or
(3) On account closure.

What is the deposit product name that you have your money in?

ajmull

Fungus, RABO Direct Savings Account (on demand).

Pablo Sanchez

ajmull wrote: »

Fungus, RABO Direct Savings Account (on demand).

I have done it myself just recently, you can close it with a letter to them, they follow up 'security call' and the money is in your account in 1/2 days. You will pay DIRT at 33% if done before the new year.

JTMan

ajmull wrote: »

Fungus, RABO Direct Savings Account (on demand).

Don't waste your time closing it. There is no point for tax reasons.

You will be paid interest on 31 December 2013 at a 33% tax rate.