Bank account

[joepubli]

The interest rate for an individual account is say 2.5%. However the interest rate for a corporate or a Trust is much lower - around 1%pct.

Is it possible for an individual to open an individual account as a nominee for the Trust and benefit from the higher rates. If so, what needs to be done to make sure that the income is attributable to the Trust and not the individual.

I have never understood the reason for the interest rates for individuals and organisations being so different.

[pawncob]

Read the Ts & Cs for individual accounts. You have to declare that it is NOT for a trust.

[joepubli]

So if the Trust lends the money to a beneficiary at zero rate and the beneficary puts it on deposit? Obviouly the beneficiary would pay tax on the interest received.
Does this have any implications for the Trust or the beneficiary assuming the money lent is capital.

[pawncob]

Depends on the type of trust and the terms thereof.
If the trust is able to advance capital to the beneficiary, what he then does with it is his business.