[clg]

I want to run an idea by you all to see if this would work. I will be taxed at the highest rate in NZ. My wife, will not be working so will be taxed at a much lower rate.

If we open a savings account in her name only, would taxes then be based only on her income, and thus be at a lower rate?

Thanks for any advice,

Chris

[acisman]

I would think that if the account is in your wife's name only and she has an IRD ( income tax ) number, the bank/building society will only stop tax at the 19.5% rate.

She will of course have to apply for an IRD number and until that is available tax on interest will be stopped at the higher rate.

Pam & Dave