2 questions on the Coventry ISA

Kernel_Sanders

rosalinda88 wrote: »

Never said you pay tax on ISA.
1.6% is for leading 1 year, not Coventry.
1.6 x 5 = 8 not 8.2

Are you alright?

Obviously not, as I can't multiply 1.6 by 5! My apologies, I see that you had actually calculated a compound interest rate to one decimal place.
You did however query whether you could lose tax-free status on an ISA.

masonic

Kernel_Sanders wrote: »

Obviously not, as I can't multiply 1.6 by 5! My apologies, I see that you had actually calculated a compound interest rate to one decimal place.
You did however query whether you could lose tax-free status on an ISA.

It isn't even correct to 1 decimal place as that would be 8.3%. Clearly this poster is engaging in a deliberate wind-up.

Kernel_Sanders

masonic wrote: »

Clearly this poster is engaging in a deliberate wind-up.

I have to disagree; the OP is just confused (as indeed I was!). I really don't understand this

rosalinda88 wrote: »

Surely it can't be 2.4% at maturity (2020)- why wait 5 years for 2.4% when you can easily do 1.6% for 1 year.

If you wait 5 years, then surely you have got the 2.4% for each and every year.

masonic

Kernel_Sanders wrote: »

I have to disagree; the OP is just confused (as indeed I was!). I really don't understand this If you wait 5 years, then surely you have got the 2.4% for each and every year.

OP is treating an interest rate as a compound return figure.

OP later comes out with the "1.6 x 5 = 8 not 8.2", yet in the first post comes up with "This 2.4% will be compounded over the 5 years meaning I will get 12.5% if I leave until maturity?" Clearly that original compound interest calculation is a little more sophisticated than 2.4 x 5.

Troll. Do not feed.

rosalinda88

masonic wrote: »

OP is treating an interest rate as a compound return figure.

OP later comes out with the "1.6 x 5 = 8 not 8.2", yet in the first post comes up with "This 2.4% will be compounded over the 5 years meaning I will get 12.5% if I leave until maturity?" Clearly that original compound interest calculation is a little more sophisticated than 2.4 x 5.

Troll. Do not feed.

12.5% matches the return on end sum after 5 years as in that long post with 10k start, just like the 8.2%.

If anybody is "trolling" it is messages saying "you're wrong, you don't get it, you don't understand" and then posting numbers that match what I've been saying.

You can re-read the thread again if you like. Anyway, this time I really am done with this thread.

Peace.

Archi_Bald

People were trying to help the OP understand, for example, the difference between AER and overall return but it seems the OP is totally determined to stick with their incorrect understanding.