Help with some maths please

furndire

If I had put £500 a month in an ISA from April 2010 to Mar 2011, any ideas what interest I would have received - just on a basic ISA?
I know interest rates were low, but I didn't know just what they were so maybe someone can enlighten me.

jennifernil

Rates could have been anything from 0.1% to 4%, so impossible to sy without knowing your rate.

To calculate roughly, if you deposit the £500 regularly then you can calculate the interest as if it were on half the total, so on £3000.

At 0.1% that would be £3. At 4% it would be £120.

However the max you could (under HMRC rules) deposit in 10/11 into a cash ISA was £5100, or £425 per month.

psychic_teabag

There's a regular-savings calculator at
http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

So you can plug in different interest rates to see what it predicts. You'll want to select "just using a regular saver" with no tax (since it's an ISA). For example, it predicts £64.80 interest for a year at 2% - a "basic ISA" could be getting anything from 0.1% to 3.0% so it depends on the actual rate - if you tell us who it was with, someone here might be able to make a guess. The actual product name would be even better.

Funkyfreddy

furndire wrote: »

If I had put £500 a month in an ISA from April 2010 to Mar 2011, any ideas what interest I would have received - just on a basic ISA?

If you had put 12 payments of £500 into an Cash ISA you would have deposted £6,000 - £900 more than your personal allowance in the 2010/11 Tax year to 5 April 2011

I know interest rates were low, but I didn't know just what they were so maybe someone can enlighten me.

There is no "fixed" rate for a basic ISA. Your going to have to provide details of who your money is deposted with, and ideally the specific ISA product - what is shown i your passbook similar documentation.

FF

furndire

I didn't put the money in an ISA, but was curious as to how much it would make - shall be doing that this year. It'll be split between 2 people.
Thanks for the link - that will come in very useful.

jennifernil

What do you mean by "split between 2 people"?

Be aware that an ISA cannot be a joint account. And that you can only make current year contributions to one provider at a time. You cannot have 2 accounts that you deposit into.

furndire

Its going to be for 2 separate people.

Funkyfreddy

furndire wrote: »

I didn't put the money in an ISA, but was curious as to how much it would make - shall be doing that this year.

...in which case you will have over funded your 2011/12 allowance to the tune of £660 come 5 April 2012

As to "how much it would make"...well that would depnd on the interest rate.

furndire wrote: »

It'll be split between 2 people.
Thanks for the link - that will come in very useful.

Split in the sense you would have to have two ISA's - one for each individual.


FF

furndire

Sorry, all I needed was an idea on how to work out the interest - psychicteabag answered what I needed - don't need an inquisition, so will bow out now, and thank you for all your help.