ISA /saving account sums

soulman247

1) I have a cash ISA I earn 3% intrest and I have £1000 (1 thousand pounds) in it, how much will i earn in one year?

Please can you leave the sum so I can work it out on other amounts.

2) Also in a normal saving account with 3% intrest How much money will I make on a £1000 (1 thousand pounds) taking away tax

3) How much money will i need in "normal" saving account with 3% intrest to earn £10000 (10 thousand pounds) intrest each year

Eco_Miser

soulman247 wrote: »

1) I have a cash ISA I earn 3% intrest and I have £1000 (1 thousand pounds) in it, how much will i earn in one year?

Please can you leave the sum so I can work it out on other amounts.

£30 (3 * 1000 /100)

soulman247 wrote: »

2) Also in a normal saving account with 3% intrest How much money will I make on a £1000 (1 thousand pounds) taking away tax

Depends on your tax rate. Assuming 20%, then tax is one fifth of the interest £6, so you keep £24.

soulman247 wrote: »

3) How much money will i need in "normal" saving account with 3% intrest to earn £10000 (10 thousand pounds) intrest each year

You need as many £1000s as there are £24s (from previous answer) in £10000; 416⅔. So £416,666.67

xylophone

1) In an ISA the income is tax free. 3% per annum=£30 for each £1000 invested.
2) In a normal account, 20% tax is paid before you receive the income - therefore you receive only £24 per £1000 invested.
3) To achieve £10000 net (after tax) on the normal account you would have to have invested approx
£417000 at the beginning of the year. (417 x30 =£12510. 20% of £12510= £2502. £12510 - £2502 = £10008)

opinions4u

Before we start worrying about financial education in school, they need to teach basic maths.

p00hsticks

soulman247 wrote: »

1) I have a cash ISA I earn 3% intrest and I have £1000 (1 thousand pounds) in it, how much will i earn in one year?

also bear in mind that the answers above assume that you have the entire £1000 in the ISA for the whole of the year - if you put the money in in stages throughout the year you will get proportionally less.