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It wasn't Alexland who stated 4 years and 7 months but it's easy to derive that timespan, based on a one-off upfront deposit of up to £1,000 and then a monthly maximum of £200, so it would take 55 months (4 yrs 7 mths) to reach £12K worth of contributions (£1K + 55 x £200 = £12K).alandaniel132 wrote: »
However, returning to your original question, interest earned will shorten the time to reach a balance of £12K, hence my calculation, in the post immediately above yours, of 4 years and 4 months, assuming a typical interest rate of 2.5%....0 -
The rules state only that the bonus must be used towards the purchase. There is no rule stating the closing balance of the ISA must be used. Solicitors vary in their interpretation of the rules, so it would be best to discuss this and agree it up front.
Thank you for responding. I'll do as you say and agree this with the solicitor.0 -
It wasn't Alexland who stated 4 years and 7 months but it's easy to derive that timespan, based on a one-off upfront deposit of up to £1,000 and then a monthly maximum of £200, so it would take 55 months (4 yrs 7 mths) to reach £12K worth of contributions (£1K + 55 x £200 = £12K).
However, returning to your original question, interest earned will shorten the time to reach a balance of £12K, hence my calculation, in the post immediately above yours, of 4 years and 4 months, assuming a typical interest rate of 2.5%....
Yes, correct.
Assuming initial deposited £1,200 maximum
every month £200.
So it need 4 years 5 months to reach £12,000
Calculation: 12,000 - 1,200 = 10,800 / 200 = 54 months = 4 years 5 months.
At the end of 4 years, including interest 2.5%, need 4 years to reach £12,000.
4 years time to get maximum £3000 bonus0 -
No idea why you say 'yes, correct' after I'd answered a question you were asking, when you've then come up with your own versions of the calculation, with multiple wrong answers!alandaniel132 wrote: »Yes, correct.
Assuming initial deposited £1,200 maximum
every month £200.
So it need 4 years 5 months to reach £12,000
Calculation: 12,000 - 1,200 = 10,800 / 200 = 54 months = 4 years 5 months.
At the end of 4 years, including interest 2.5%, need 4 years to reach £12,000.
4 years time to get maximum £3000 bonus0 -
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It wasn't Alexland who stated 4 years and 7 months but it's easy to derive that timespan, based on a one-off upfront deposit of up to £1,000 and then a monthly maximum of £200, so it would take 55 months (4 yrs 7 mths) to reach £12K worth of contributions (£1K + 55 x £200 = £12K).
However, returning to your original question, interest earned will shorten the time to reach a balance of £12K, hence my calculation, in the post immediately above yours, of 4 years and 4 months, assuming a typical interest rate of 2.5%....I could break the maths to prove it possible in less than 4 years if that would help?
Alex
What do you mean?0 -
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alandaniel132 wrote: »please clarify where is the wrong answer!
54 months for the £10,800 plus the first month (in which the £1200 can be paid in) equals 55 months, i.e. 4 years and 7 months in total.alandaniel132 wrote: »Assuming initial deposited £1,200 maximum
every month £200.
So it need 4 years 5 months to reach £12,000
Calculation: 12,000 - 1,200 = 10,800 / 200 = 54 months = 4 years 5 months.
It's true that the overall elapsed time can be shortened a bit if scheduling payments optimally within the first and last months but it does take 55 separate calendar months.
The interest earned in the first four full years will be circa £600, i.e. three months' contributions, so the above timescale can be shortened by three months, giving 4 years and 4 months to reach £12K (needed for the maximum £3K bonus) when interest is included.alandaniel132 wrote: »At the end of 4 years, including interest 2.5%, need 4 years to reach £12,000.
4 years time to get maximum £3000 bonus0 -
54 months for the £10,800 plus the first month (in which the £1200 can be paid in) equals 55 months, i.e. 4 years and 7 months in total.
It's true that the overall elapsed time can be shortened a bit if scheduling payments optimally within the first and last months but it does take 55 separate calendar months.
The interest earned in the first four full years will be circa £600, i.e. three months' contributions, so the above timescale can be shortened by three months, giving 4 years and 4 months to reach £12K (needed for the maximum £3K bonus) when interest is included.
Thanks.
I wrote the wrong, 54 months = 4.5 years = 4 years 6 months.
So in conclusion: We need 4 years 4 months after added in the interest to get the maximum bonus of £3,0000
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