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ISA Interest calculation q.
Jim_Nasium
Posts: 2 Newbie
Hi,
Beginner at all this investing business. I was wondering how the interest on an ISA is calculated. The way that makes sense to me is for example if you have a ISA with a fixed rate of 5%, the interest is 5/12 on the balance each month and the total gets paid at the end of the tax year as as lump sum. Is this case?
Beginner at all this investing business. I was wondering how the interest on an ISA is calculated. The way that makes sense to me is for example if you have a ISA with a fixed rate of 5%, the interest is 5/12 on the balance each month and the total gets paid at the end of the tax year as as lump sum. Is this case?
0
Comments
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As a rough guide yes. However I am not sure that the monthly interest is exactly 5%/12. Probably it is slightly different: (1+5%)^(1/12)-1...
See formula for calculating interest? (posts #18 - #19) ...0 -
Thanks a million0
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Theres an interest calculator tool here - http://www.moneyforums.co.uk/savings_calculator.php0
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