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National Savings
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thowes
Posts: 4 Newbie
Hi there,
I am looking to put some money into NS, but in the write up including this web site it states the following, Index Linked Savings offering to pay 1% more than inflation. It uses the higher measure, Retail Prices Index (RPI) inflation, at 5%, meaning it pays 6% overall. Anyone on basic rate tax would have to be earning 8% in a normal savings account to match this.
As I understand it 8% minus 20% ( the notional tax on savings ) = 6.4%
Am I wrong in saying you need above 7.5% to beat the 6% net.
Thowes
I am looking to put some money into NS, but in the write up including this web site it states the following, Index Linked Savings offering to pay 1% more than inflation. It uses the higher measure, Retail Prices Index (RPI) inflation, at 5%, meaning it pays 6% overall. Anyone on basic rate tax would have to be earning 8% in a normal savings account to match this.
As I understand it 8% minus 20% ( the notional tax on savings ) = 6.4%
Am I wrong in saying you need above 7.5% to beat the 6% net.
Thowes
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I'd say you were correct.0
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