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Interest
BIZZYIZZY
Posts: 163 Forumite
If some one had £20,000 10years ago and put in to say a ISA or high interest account at that time But nothing high risk, what would you expect the return to be now
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Comments
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You need to lookup up the historical interest rates for those years. Don't forget to also deduct tax to work out what you would have now.0
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About £11,634.93
Taking the highest base rate in each year, bear in mind that this is gross.
00: 6%
01: 6%
02: 4%
03: 4%
04: 4.75%
05: 4.5%
06: 5%
07: 5.75%
08: 5.5%
09: 1.5%0 -
I find this link quite handy.If some one had £20,000 10years ago and put in to say a ISA or high interest account at that time But nothing high risk, what would you expect the return to be now
RPI - £25,531
FTSE - £17,027 (I suspect this excludes dividend reinvestment)
SAVINGS - £30,794 (assuming no tax deductions)0 -
I think your figures are a little off... a £9,000 loss in cash over 10 years would be quite bad!JoeCrystal wrote: »About £11,634.93
Taking the highest base rate in each year, bear in mind that this is gross.
00: 6%
01: 6%
02: 4%
03: 4%
04: 4.75%
05: 4.5%
06: 5%
07: 5.75%
08: 5.5%
09: 1.5%I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
BIZZYIZZY only want the interest/return.
So £11,634.93 interest... or adding £20,000 equals £31,634.93 which is not that far off from opinions4u's link.0 -
opinions4u wrote: »I find this link quite handy.
RPI - £25,531
FTSE - £17,027
SAVINGS - £30,794 (assuming no tax deductions)
Oh dear. Quite depressing for equity investment especially as the interest rates assumed are far from the best that were available. Helps put things in perspective and here's hoping for better in the next 10.0 -
Ahhh, I see. My mistake.JoeCrystal wrote: »BIZZYIZZY only want the interest/return.
So £11,634.93 interest... or adding £20,000 equals £31,634.93 which is not that far off from opinions4u's link.
Thanks for the explanation
I am a Chartered Financial Planner
Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.0 -
JoeCrystal wrote: »About £11,634.93
Taking the highest base rate in each year, bear in mind that this is gross.
00: 6%
01: 6%
02: 4%
03: 4%
04: 4.75%
05: 4.5%
06: 5%
07: 5.75%
08: 5.5%
09: 1.5%
20k initial.... and now... only worth half... you sure you did your calcs right?Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0
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