FAQ’s for Qualifying Time Deposits

Your fixed rate bond may meet the criteria for a Qualifying Time Deposit (QTD). Please see below for more information about QTDs and what this means for you.

  1. What is a QTD and why do I receive gross interest?
  2. Why do I receive gross interest on my fixed rate bond if the balance is more than £50k?
  3. How does this affect personal saving products with Anglo Irish Bank?
  4. Are there any upsides to having a QTD?
  5. What if I have a joint account for £50k?
  6. If I have 2 Fixed Rate Bonds for £30k, are they classed as a QTD as they add up to £60k?
  7. How do I pay my tax or ask any further tax related questions?
  8. What action do I need to take for bonds that are already closed?
  9. What happens if I have an existing bond that meets the QTD criteria?

1. What is a QTD and why do I receive gross interest?
In line with HM Revenue and Customs (HMRC) guidelines, if your account meets the QTD criteria you will receive your interest with no tax deducted. The payment of gross interest to a customer as above is classed as a Qualifying Time Deposit (QTD). Please click here or refer to the HMRC website for further information.

Back to Top

2. Why do I receive gross interest on my fixed rate bond if the balance is more than £50k?
Because your deposit qualifies as a QTD and therefore you will receive your interest with no tax deducted - gross interest from us.

Back to Top

3. How does this affect personal saving products with Anglo Irish Bank?
Anglo Irish Bank offers certain products that fall within the QTD criteria. In respect of these products we are required to pay gross interest to our customers. It is then the customer's responsibility to forward this information to the HMRC for tax return purposes. This currently affects our 9 month and 1 year fixed rate bonds. Please note customers who currently do not complete tax self assessments will need to complete an assessment if their deposit falls within the QTD criteria.

Back to Top

4. Are there any upsides to having a QTD?
You will receive the financial benefit of the gross interest, until you are required to pay any tax due to the HMRC.

Back to Top

5. What if I have a joint account for £50k?
Your Fixed Rate Bond is classed as a QTD even if there are 2 account holders; it is the amount that determines if the Fixed Rate Bond qualifies as a QTD.

Back to Top

6. If I have 2 Fixed Rate Bonds for £30k, are they classed as a QTD as they add up to £60k?
No, as they are less than £50,000 each, neither of them qualify as a QTD. You can have as many accounts as you wish, but ONLY accounts with a balance of £50,000 or more and that are a 9 month or 1 year fixed rate bond, are classed as a QTD.

Back to Top

7. How do I pay my tax or ask any further tax related questions?
We cannot offer tax advice. Please visit www.hmrc.gov.uk for more information, or contact your tax advisor or local tax office.

Back to Top

8. What action do I need to take for bonds that are already closed?
Customers whose bonds closed prior to 17th March 2009 will not be affected by the QTD Rules and therefore no additional action is required.

Back to Top

9. What happens if I have an existing bond that meets the QTD criteria?
Customers whose bonds meet the QTD criteria have been notified by letter. Interest on these accounts will be paid gross and you are responsible for declaring the relevant tax information to HMRC.

Back to Top