Current account gross interest monthly payments required...

Harveys_2

Hi has anyone worked out the gross interest payments for all the top current accounts?

I'm hoping this will help a lot of people on this forum.

Thank you for reading.

SuperHan

I'm not sure I understand... The gross payments are even easier to work out than before...

Halifax Reward - still £5
TSB - £100 pa per full account (5% x £2k)
Santander - £600 per full account (3% x £20k)
Lloyds Club - £200 per full account (4% x £5k)

Is that what you mean?

colsten

The interest depends entirely on how much you have in the accounts and for how long.

I think there's a table of the max you can make in some accounts in the 5% loophole article. If you want to know how much you can make in regular savers, you can use the MSE Regular Saving calculator.

Harveys_2

Hi superhan / colsten thank you for your reply. Sorry I should have made it clearer.

I was hoping someone had a spreadsheet with monthly gross figures worked out if one had the maximum in the account.

At the moment I skim off the net interest each month by dd to my Tesco accounts and I want to change this to gross interest.

I thought this might help others too.

colsten

SuperHan wrote: »

I'm not sure I understand... The gross payments are even easier to work out than before...

Halifax Reward - still £5
TSB - £100 pa per full account (5% x £2k)
Santander - £600 per full account (3% x £20k)
Lloyds Club - £200 per full account (4% x £5k)

Is that what you mean?

On an account that is always full, you cannot achieve the AER as no compounding can take place. In any case, the gross rate, not the AER, is always used by all the institutions to calculate interest.

YorkshireBoy

Harveys wrote: »

At the moment I skim off the net interest each month by dd to my Tesco accounts and I want to change this to gross interest.

So your question is really "how do I gross up my interest?".

To which the answer is you multiply the net figure by 1.25

Harveys_2

Hi yb not exactly. I wanted to see if someone had a spreadsheet which they could paste here for the benefit of everyone for example...with figures

Current account. Max balance. Monthly gross interest. Monthly net interest.

YorkshireBoy

Harveys wrote: »

Hi yb not exactly. I wanted to see if someone had a spreadsheet which they could paste here for the benefit of everyone for example...with figures

Current account. Max balance. Monthly gross interest. Monthly net interest.

Monthly interest will vary depending on number of days in calendar month (eg Nationwide) or billing period (eg Lloyds).

Net interest is irrelevant from 6th April onwards.

Monthly gross interest (for a maxed out account) is:

Balance x gross p.a. rate / 365 x n

Where n = number of days in statement/billing period month.


When you've done your spreadsheet please post it up.


EDIT: But I think you'll give up before completing it, once you realise that Lloyds, TSB, et al will need 7 calculations depending on whether there's 28, 29, 30, 31, 32, 33, or 34 days in the billing period...and Nationwide will need 4 calculations depending on whether there's 28, 29, 30, or 31 days in the calendar month.

colsten

Harveys wrote: »

Hi yb not exactly. I wanted to see if someone had a spreadsheet which they could paste here for the benefit of everyone for example...with figures

Current account. Max balance. Monthly gross interest. Monthly net interest.

Gross and net will be the same from next Wednesday onwards as banks will not withhold tax any longer (doesn't mean you might not have to pay any tax, however).

As you appear to know what your monthly net interest is, just do as YorkshireBoy suggested if you need the amount without tax deduction. Or work it out with this formula:
((amount * gross interest) / 365 )* number of days in month.

EDIT: YB types faster than I do.....

Harveys_2

Thank you both

diamonds

Need to get my interest tax refund for my TSB in soon

Can this be lodged like now, given I'm not going to earn 1/3 of the tax threshold in a few days does HMRC except such before 6th April?


Sorry for the dumb question but I have never been a non tax payer before...




Ta