Help with Maths please

quill_2

OH ( non tax payer) has opened A&L regular saver 12% and will drip £250 each month from a savings account paying 6.25% (gross and net).

I ( high rate tax payer)am being badgered to do the same. Drip feed from OH's savings so 6.25% (net)to 12% but this would be taxed.

Is it worth doing for me? Leave the £3k in OH's 6.25 % account or go to trouble of doing above?
Thank you in advance.

oldfella

you would be about £10 better off - hardly worth it ?

Mr_Mumble

I make it:

12% * .6 = 7.2% net
7.2% - 6.25% = .95% difference
0.0095 * £1650 = £15.68

(£1650 is, roughly, the average amount of money you'll have in the regular saver over the entire year.)

You'll also lose interest transferring over from OH's account to yours which takes the figure closer to oldfella's £10.

debbie42

As a quick calculation:
you'd get around 12% x 0.6, after tax, i.e. 7.2%
This would be on an average balance of £1500

If it stayed where it was you'd get 6.25%, so the difference is 0.95% of £1500, i.e. £14.25, but this doesn't account for any interest lost during transfer.

<edited: beaten to it!>