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newbie question regarding post office savings account
bambi1984
Posts: 44 Forumite
Right im new to this site and savings just opened the post office savings account its 1.9% per month intest would this for example say £10.90 per 1 thousand pounds?? and its 2.9% bonus if i have it in for a year which i probablly will do. I do not want to pay any kind of tax i know ill have about 5 and half thousand. Does this added bonus go on the whole balance i take it ?? and when you get paid intrest is it definatly per month as stated by post office ? and how much intrest would it be on 5000 per year im sorry to sound silly im just new to all this 
Debt free in January 2011 dont owe a penny to anyone after 8 years in the red :beer:
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The account pays 2.9%pa for the first 12 months. So, if you have £5000 in the account for the whole year, you'll earn £145 interest before tax (or £116 for a basic rate taxpayer).
If you opt for interest to be paid monthly, you'd get roughly 1/12 of that per month, so around £12 per month before tax (£9.60 for a basic rate taxpayer).Stompa0 -
thank you ever so much stompa for clearing that up your a star!! also say i leave all the balance in the account for the full year will the 2.9% just go on top of the actual balanceDebt free in January 2011 dont owe a penny to anyone after 8 years in the red :beer:0
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also rompa do u pay interest even if ur not over the allocated alowence is this just on the interest are the actually balance? or interest earnt !! yeah i am also the basic tax payerDebt free in January 2011 dont owe a penny to anyone after 8 years in the red :beer:0
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Actually........ I'd like to know that, too.:)also rompa do u pay interest even if ur not over the allocated alowence is this just on the interest are the actually balance? or interest earnt !! yeah i am also the basic tax payer0 -
you pay tax on the interest earnt (I think)
would you be better off looking at ISAs??Dedicated wife and mother... and now financial controller lolIts a long road, but I will make it there in the end0 -
If you pay tax then the interest is paid to you after the Post Office has deducted the tax.0
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I do not want to pay any kind of tax
Can you name for me anyone that comes on a forum and says "I really want to pay lots and lots of tax"?
You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.0 -
'It's not the question one needs to understand... it's the answer to the question.. Grasshopper'I'm not sure I understand the question!0
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