Bank of HMRC - overpaid tax interest

[BrilloPad]

Any other alternative saving methods that may be paying more than the typical savings account these days?

Don't ever save. Just use your money on deposits for BTLs.

[Hobosapien]

Just received a message from HRMC saying I'd overpaid tax on my self assessment and was due a refund of over £450, including just under a fiver in interest. Goes back to small overpayments since 2010 apparently when looking at the breakdown.

Wasn't sure they could be used as a savings bank this way, thought interest on overpayments was a myth. The take with one hand (interest on late payments) but not give back with the other (interest on overpayments).

Only downside is they need my personal account to pay into, so they'll then be able to take payments in advance, or whatever rules they come up with for raiding accounts for tax they see due in their crystal ball.

I might make some large payments on account to offset the new divi tax.

Reminds me of my dad once 'fleecing' Dixons by paying back too much on a credit account so he was getting paid interest instead of them. Not sure why they didn't just refund the difference but back then I remember them chasing him to take it back.

Any other alternative saving methods that may be paying more than the typical savings account these days?