We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
More tax free savings anyone?
david78
Posts: 1,654 Forumite
Am I missing something. I have been trying to decide whether National Savings Index linked certificates (over 3 or 5 years) are a good way of topping up my tax-free savings. (After I have used my ISA allowances)
On the face of it, they seem like an excellent medium-term product for higher rate tax payers. But I can't get the interest rates, indexation and equivalent AER values given on the NS&I website to tie up with my own calculations.
I do my calculations for the 3 year bond and get an AER of about 4.5% (all tax free). I have assumed 2.5% inflation. This is not too bad a rate considering I would need to find 7.5% to match it in a taxed account.
Does anyone know where I can find some more information or fancy telling me how to work out the rates properly?
On the face of it, they seem like an excellent medium-term product for higher rate tax payers. But I can't get the interest rates, indexation and equivalent AER values given on the NS&I website to tie up with my own calculations.
I do my calculations for the 3 year bond and get an AER of about 4.5% (all tax free). I have assumed 2.5% inflation. This is not too bad a rate considering I would need to find 7.5% to match it in a taxed account.
Does anyone know where I can find some more information or fancy telling me how to work out the rates properly?
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards