Tsb plus account 5%

Bartle

Many thanks, Achi Bald. Tell me, do you know who to do the calculation to work out the yearly interest? Sorry, but I've never been very good at percentages... Thank you again.

Gram_Parsons

Well, very roughly: ten percent of 2K is £200. Half that again is £100 but as Archi says it's not quite 5% and then you've got to take off basic rate tax which is another £20 of the roughly £100.

Prof_FrinkProf

smudge2006 wrote: »

I got round this by applying for a normal classic account (without plus) then upgrading to plus when open.

This worked! Thanks :j:j:j

polymaff

Bartle wrote: »

Many thanks, Achi Bald. Tell me, do you know who to do the calculation to work out the yearly interest? Sorry, but I've never been very good at percentages... Thank you again.

Think in terms of hundreds of pounds. If you've got £100 at 4.89% that earns £4.89 per annum. If you've got £20oo pounds, that's 20 times £4.89 per annum.

Unfortunately there's the uneven length of months - both due to the calendar and the disruptive effect of weekends - plus tax to consider.

Without basic arithmentic, though, you're a blindfolded lamb in a slaughterhouse

stevec59

I too was wondering about the interest, I've not had my accounts (4 of them) that long and noticed @ £6.44 interest.
I just launched calculator and did £2000 + 4.89% = 2097.8, so that means £97.80 PA interest after tax, if I then divide that by 12, I get £8.15, why is there such a difference? Does that mean that some months, because they are longer than others, we should get a lot more that @ £6.44?


Sorry if I'm being thick :-)

Ed-1

stevec59 wrote: »

I too was wondering about the interest, I've not had my accounts (4 of them) that long and noticed @ £6.44 interest.
I just launched calculator and did £2000 + 4.89% = 2097.8, so that means £97.80 PA interest after tax, if I then divide that by 12, I get £8.15, why is there such a difference? Does that mean that some months, because they are longer than others, we should get a lot more that @ £6.44?


Sorry if I'm being thick :-)

4.89% is the gross rate so that is before tax, not after. The net rate is 3.912%. To work out the monthly interest you need to do [(2000x0.03912)/365] x the number of days in the monthly billing period (i.e. 2nd working day to 1st working day of next month).

AlwaysLearnin

The difference is the 20% tax.

Interest is calculated daily, so the amount will vary a little each month too, depending on how many days since the last interest payment.

Edit: Ed beat me to it!

takke

I was in the branch on Sunday to sort out joint Classic Plus accounts, and the branch manager I was speaking to said that he thought the rules would change this week or next week so customers would only be allowed to open one account (this may mean one + one joint as the existing rules say you can only have two Classic Plus accounts, but in reality you can have two joint as well.) No idea if this is true but I thought I'd give a heads up in case anyone wants to set up their allocation of accounts before a surprise change to the rules!

polymaff

stevec59 wrote: »

I too was wondering about the interest, I've not had my accounts (4 of them) that long and noticed @ £6.44 interest.
I just launched calculator and did £2000 + 4.89% = 2097.8, so that means £97.80 PA interest after tax, if I then divide that by 12, I get £8.15, why is there such a difference? Does that mean that some months, because they are longer than others, we should get a lot more that @ £6.44?


Sorry if I'm being thick :-)

£6.44 is 30 days of net interest

Bartle

Hmm, £6.44 to £6.86 a month isn't much of a return for the £2K...

Can anyone plaese recommend a better investment for £4,000? Thank you very much!