Savings

tosco12

So I have £5000 to put into an savings account that pays 1.52% gross annually what would I get back after 12 months. Thanks

YorkshireBoy

That would depend on your tax situation.


What is it?


Alternatively, if you'd rather not say, get a calculator and type in


5
0
0
0
x
1
.
5
2
%


And that will give you the gross interest, ie before tax.


If you're a higher rate tax payer (unlikely?), then multiply this figure by 0.6.


If you're a basic rate tax payer, multiply it by 0.8

tosco12

Thankyou
very much

innovate

How old are you, tosco12?

If you are 12, you might be able to claim gross interest.

YorkshireBoy

tosco12 wrote: »

Thankyou
very much

What's the answer?

tosco12

Ok Basic rate taxpayer, Im actually going to committ to 2 years and the interest will be 227.50 at the end of 2 yrs

innovate

tosco12 wrote: »

Ok Basic rate taxpayer, Im actually going to committ to 2 years and the interest will be 227.50 at the end of 2 yrs

You got something wrong in your calculations. You cannot make £227.50 from £5,000 in 2 years if the AER is 1.52% and you are a basic rate tax payer. Not even half.

xylophone

Gross interest (compound) on £5000 for two years at 1.52% is only around £153 - if you are a standard rate tax payer this will be reduced to around £122.

Wilkins

tosco12 wrote: »

Ok Basic rate taxpayer, Im actually going to committ to 2 years and the interest will be 227.50 at the end of 2 yrs

That's almost 2.25% AER.

Archi_Bald

Wilkins wrote: »

That's almost 2.25% AER.

Not available at present.

Gromitt

Archi_Bald wrote: »

Not available at present.

Maybe they mean a fixed rate bond? You can get those at 2.35%, but thats still only £190 after BRT.