working out interest...

james3333

hi guys,
hope you can help me with this....
iam saving £250 per month at 12.5%
how do i work out the amount i will have at the 1 year maturity point, after tax?
cheers.

oh, also, what would this senario work out as if i were putting the £250 per month into a 5.25% ISA instead of the 12.5% saver.

thanks!!!!

gzed

I don't really reply to your question but I can ask where you get 12.5% interests? Are you sure it is 12.5% yearly?

james3333

yes, 12.5% barclays regular saver.

tom188

gzed wrote:

I don't really reply to your question but I can ask where you get 12.5% interests? Are you sure it is 12.5% yearly?

I suggest you have a look at the dozens of threads on the subject.

tom188

james3333 wrote:

hi guys,
hope you can help me with this....
iam saving £250 per month at 12.5%
how do i work out the amount i will have at the 1 year maturity point, after tax?
cheers.

oh, also, what would this senario work out as if i were putting the £250 per month into a 5.25% ISA instead of the 12.5% saver.

thanks!!!!

use https://www.whatsthecost.com

Regular saver = 179.49 gross, 143.59 basic rate, 107.69 higher rate.
ISA = 73.86 tax free

james3333

thanks tom188
pity the calculator doesnt do tax, but thanks, this helps.
i didnt realise the return on an ISA was so low for £250pm this savings account is nearly double!

tom188

Well the difference is 7.25% gross.

To calculate the net rate:
Basic rate (20%) = Gross Rate (eg 12.5%) * 0.8 = (eg 10%).
Higher rate (40%) = Gross Rate * 0.6 = (eg 7.5%).

Hence net rates are above that of the ISA.