Pensioner bonds

joe134

Just had my letter , value £11163?
At 4% pa should it not be £12000 based on simple interest and not compounded ?

badger09

joe134 wrote: »

Just had my letter , value £11163?
At 4% pa should it not be £12000 based on simple interest and not compounded ?

I'm making a few assumptions, but here goes

£10000 invested 1/3/15
@ 28/2/16 interest £400 due, less 20% tax, net £10320

28/2/17 £10320 @ 4% £412.80

28/2/18 10732.80 @ 4% £429.31

maturity value £11162.11

Pretty close:)

joe134

badger09 wrote: »

I'm making a few assumptions, but here goes

£10000 invested 1/3/15
@ 28/2/16 interest £400 due, less 20% tax, net £10320

28/2/17 £10320 @ 4% £412.80

28/2/18 10732.80 @ 4% £429.31

maturity value £11162.11

Pretty close:)

thanks badger, close enough for me,
that explains it . I wasn!!!8217;t sure about the tax on this bond.
Presumed as interest was all paid at maturity, no tax was due until this tax year?
Ns@i Didn,t do r85 for first year, so forgot about r40 to reclaim it!
I Didn,t reclaim my 1 year tax bonds either, even though I knew about it!
Might just fill 2 in.
:beer: