Calculating Interest 21 August 2011 at 11:08PM edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings 3 replies 737 views

ACID

sorry for the silly question
but have to ask

if a normal cash isa is offering 3% for the year

how much interest would I gain if:


a) I deposited the full £5340 at the beginning of the current tax year


and

b) in monthly increments of £445, totaling £5340 at the end of the year.

Thanks if you can answer.

HappyMJ

About £240. £160 on the lump sum and £80 on the monthly payments.

DragonQ

You can do (a) using a calculator and you can do (b) quite simply using Excel.

(a) = £160.20
(b) = ~£88 (exact number depends on which days of the month you deposit the monthly payments)

YorkshireBoy

a) £5,340 x 0.03 = £160.20

b) £445 x 12 x 0.03 / 12 x 6.5 = £86.77


'b' assumes you make the first instalment on 6th April and the last one on 6th March