Help please

Elmly

I'm trying to decide what savings account to open and I don't understand interest rates. What rate should I look at APR? Gross pa? Net pa?
Please help!

markwilkinson

Are you a tax payer? Self employed?

Elmly

Yes I am a tax payer. No not self employed.

Masomnia

Probably best looking at ISAs if you're a tax payer, usually the best place to start. AER is the standard rate for comparison. ISA rates are paid gross, but if you're a tax payer you need to compare that with net rates for non-ISA accounts (ie. the rate you get with tax taken off).

cos_2

If your spouse isn't a taxpayer then you could open one in her/his name, fill in the very simple R85 form from the government or the savings institution and get your interest tax free.

If you haven't a spouse and you're thinking about saving a huge amount of money, I'll get divorced and marry you.

Elmly

Ok another questio... Ifi have a current account that is 2.00% gross pa/Apr will that mean I will get 2% interest on the total amount of money I put in in the year or just what's in there when I get interest added? Hope that's not a stupid question

marathon_man_3

It will be 2% on the average balance over the year up to April.