The Subtle Investor

Intermediate

Three ways to pay less tax on savings

Paying less tax on savings

My monthly mortgage cost doubled. But I also got ~5% pay increase from my employer along with securing a savings rate of 4% with my bank. But all this followed a painful inflation rate hitting 11.1% in 2022 and interest rate hike to its highest since the GFC.

All of these significantly increased the amount of taxes I am paying – I needed to actively do something. Here’s what I did.

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UK Mortgage Mayhem: are we becoming a “developing” country?

Mortgage Mayhem UK

UK housing were already extremely unaffordable. And most households were paying a high portion of their salary towards mortgages (also rents). We have one of the highest inflation rates within the developed world, and now even competing to look “better” against developing countries where inflation has fallen back down very quickly. To make the cost-of-living crisis worse, mortgage rates have started to hit the roof. High interest rates are hardly getting passed on to savers. And even if they did, do most of us have anything left over to even save?

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