The Best Mini Cash ISA Article Discussion Area

jem16

At the moment there is no better payer.

So you would want to stay put.

COCO

Cheers Jem :T

yinhong

I was just checking the numbers in the table seen in 'The Size of The Savings' section, and I couldn't get the numbers as Martin did.

Could someone else verify what values they got for Poor Savings Account (1)

Interest Rate:0.96%
Untaxed: £88
Basic Rate Tax: £70
Higher Rate Tax: £53

for initial £3000 interest over 3 years?

jem16

If you deposit £3000 for 3 years earning 0.96% interest each year you will have £3087 at the end so £87 if a non-taxpayer.

If you are a basic rate taxpayer the 0.96% becomes 0.768%. 3 years at 0.768% becomes £3070

If a higher rate taxpayer the 0.96% becomes 0.576%. 3 years at 0.576% becomes £3053.

Martin's figures appear correct.

yinhong

Hey Jem. Those are the figures that I arrived at, but they are still slightly off from the published figures in the table.

The error is magnified when you do the same calculations on the Top ISA (4) row.

Interest 6.05%
Untaxed interest: £580

But I can only make it out to be £544.5. £40 might not seem a lot but there's no harm in being more accurate is there

Aegis

Are you guys accounting for compounding when doing this? Not sure how much difference it will make, but if there's a constant calculations to those lower than Martin's, he may have included compounding while you guys go with a gross rate?

yinhong

I didn't account for compounding in the above posts, but if I've done it correctly, for the Top ISA rate, it still only totals to: £567.12.

If Martin did decide to round up, why would he choose £580?

Aegis

Hmm, just did the same calculation with compounding, assuming 1095 days in 3 years, and ended up with a gross interest of £596.39 from s starting figure of £3000 at 6.05% gross growth compounded daily. Will be back in a sec with the monthly compounding value to see if that sorts it

Aegis

£577.37 for 3 years with monthly compounded interest at that rate. Close enough?

yinhong

Why didn't I figure this out myself? God, I've been beating myself up about it all day long about why it didn't add up. Duh!

Thanks Aegis.