We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Want to become a Forum Ambassador? Visit the Community Noticeboard for details on how to apply
AER rates after tax?
Comments
-
Hi
The simplisest way to work out the interest rate, use an example 6.5% gross
6.5 / 100 x 82.5 =5.3
the net would be 5.3%
There may be a more scientific way, but allowing a difference of 0.1 either way, that get you by x
working to one decimal place you won't be far out. your answer above to two decimal places is 5.36%. it should be 5.20% - a difference of 16 basis points. basic rate tax on savings is 20% not 17.5%. you won't get any points in an exam based on your calcualation above."The Holy Writ of Gloucester Rugby Club demands: first, that the forwards shall win the ball; second, that the forwards shall keep the ball; and third, the backs shall buy the beer." - Doug Ibbotson0 -
I knew the answer wasn't that simple!
I won't ask where the 20% came from but just take it as gospel
Many thanks for all your help!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards