Reserve Accumulation Account
A Fairbairn Private Bank accumulation account
provides the full banking facilities of our Reserve Account
service, except deposit interest is calculated and accrued on a
daily basis. Because interest is only paid when you close your
account, effectively you decide when tax is assessable on your
deposit interest. For example, you may wish to delay the receipt of
interest until after retirement or a change of residency, when your
tax rate may be lower.
By deferring your interest, your annual tax
return process becomes simpler. You may not have to calculate the
interest received through the tax year or apply for a confirmation
certificate of interest received until the year of account
closure.
Fairbairn Private Bank can also offer a high
interest accumulation account for clients with over £50,000 (or
currency equivalent) to invest.
Your tax position will depend on your personal
circumstances and you should always seek guidance from a
professional tax adviser. It is the responsibility of the depositor
to declare any interest received to their relevant tax
authority.