Santander ISA HELP NEEDED

Sarahdol75

I have just closed a Flexible ISA (Issue 2) with Santander, I needed the money to put towards a house. I put in my full allowance last year of £5100.00. The current rate is 3.2% When I closed it I had only earnt £160.00 interest, is this right????? Doesn't sound a lot of interest to have been made in a year.

Lokolo

You would get 3.2% of £5,100 if you put the full amount in and it was for a year.

If you put £0 in for 6 months and £5,100 for 6 month you wouldn't get 3.2% on £5,100 as the money was only in there for 6 months.

rb10

3.2% of £5100 is £163.20.

Lokolo

rb10 wrote: »

3.2% of £5100 is £163.20.

Ha I should have checked the maths first of all I guess!

Sarahdol75

Thankyou for your replies, I am rubbish with maths and just wanted it confirmed.

Gordon_the_Moron

To work out your interest for a year use the following sum

X = the average balance of the account over the year (estimate this if you need to, if its full for 9 months its three quarters of the balance, 6 months half, 3 months a quarter work it out roughly from that)

Y =
1 if you are a non tax payer (just use the ISA calculation though)
0.8 if you pay 20% tax
0.6 if you pay 40% tax
0.5 if you pay 50% tax

Z = Your interest rate

X * 0.0Z (leave the 0 after the decimal point off if your interest is over 10%, it works for debts as well as savings calculations)

If the account is not an ISA use

X * (0.0Z * Y) (leave the 0 after the decimal point off if your interest is over 10%, it works for debts as well as savings calculations)

Rob_192

rb10 wrote: »

3.2% of £5100 is £163.20.

Yep, pitifull isn't it!