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Example needed please!
moomi
Posts: 339 Forumite
Trying to explain to husband to put money in Isa then the rest in a high rate savings account but he reckons more interest if all of the lump sum (approx £25,000) in one account. Can someone give me examples of how the figures would add up so I can physically show him please?
Mortgage Balance May 25- £9975. Planning to be paid off by Dec 25🎄
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Comments
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£25,000 in an account earning 6.3% interest is £1575. After tax at 20% this is £1260.
£3,000 into an ISA at 6.3% is £189 - no tax
£22,000 at 6.3% is £1386 - after tax is £1108.80
Total is £1297.80
So basically an extra £37.80 if using the ISA plus high interest account. If you can put £6,000 into an ISA ( using both of your allowances ) difference is greater.0 -
thats exactly what i needed. many many thanks.Mortgage Balance May 25- £9975. Planning to be paid off by Dec 25🎄0
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