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ISA accounts how do you figure out
chicago76
Posts: 5 Forumite
How do you calculate the net rate interest of an ISA account that has an AER of 5.06% and I'm a basic rate tax payer of 20%
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Comments
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You don't pay tax on ISA interest.0
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How do you calculate the net rate interest of an ISA account that has an AER of 5.06% and I'm a basic rate tax payer of 20%
As said, the point of ISAs is that the returns are tax-free, which is why your cash allowance is limited to £3600 (persons born after April 5th, 1960), or £5100 (born on or before 05/04/1960).
From the 6th April, all investors aged 16+ can contribute up to £5100 into a cash ISA.£1 / 50p 2011 holiday flight + hotel expenses = £98.50/£600
HSBC 8% 12mth regular savings = £80 out of a maximum remaining allowance of £2500
"3 months' salary" reserve = £00 / £3600 :eek:0 -
Are you asking what would you have to get on a taxed account to get the same amount of interest?
(5.06/80)*100= 6.325% (I think)
Remember, this interest (if paid into the ISA) still has tax free status.0
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