Compound interest savings accounts

[Phil 1124]

Would anyone know if compounded interest in a savings account if locked for 3 years is taken into account by the CMS ?

 

[Roblox]

Hi

So at what point(s) is the interest taxable.

There's some complicated rules around this type of interest if I recall correctly?

 

[Ash]

I'm afraid I don't know. If it's locked for 3 years, is it a tax-free ISA?

 

[Phil 1124]

It would be a high interest rate account not accessible to myself for 3-5 years by wich time CMS will not be applicable to me

 

[Ash]

I would suspect that any interest earned would be assessable as income, even if not accessible, but maybe the only way to know is ask the CMS. You could try asking an accountant first as they may be able to produce a letter saying it's not classed as income or something.