Advice please

Thecar

Further to our other post regarding 100k savings
Please coujd someone help us on the intrest we woukd receive on these figures 
100k fixed 1 yr 4% or split the 100k into 2 amounts 
50k fixed 1 yr 4%
50k fixed 2 yrs 4.5%
Which would be the best option 
We just cant work out the intrest we woukd get both basic tax payers

Nebulous2

You would get £4000 with the first one, £100000x0.04. 

£4250 with the second one, £50000x0.04 and 50000x0.045. 

Those are annual figures, with you needing to find another rate for the one year ones after 12 months, where you would get the £2250 with the two year one the following year if you withdrew the interest. 

Dazed_and_C0nfused

You would get far more interest with this option.

50k fixed 1 yr 4%

50k fixed 2 yrs 4.5%

But that would all depend on what you did with the first 50k in year 2.  If you put it in a 5% account for year 2 then the two 50k accounts would be even better.  If you put it in a 3% account the 100k option would be better.

If you only count the interest for year 1 then option 1 gives you £4,000.

Options 2 gives you £4.250 (6.25% better return). 

eskbanker

Thecar said:

We just cant work out the intrest we woukd get both basic tax payers

The above posts are giving gross figures but of course income tax would come into play to reduce these, given that the money isn't within any tax wrapper such as ISAs - the exact deductions will depend on a range of factors including level of taxable earnings or other income, but once allowances are exhausted then anything in excess of these will be taxed at 20% (if in England).  The tax year(s) in which you receive the interest income from a multi-year account can also make a difference.... 

Dazed_and_C0nfused

20% in Scotland and Wales as well as they don't currently have any say over tax rates for savings (or dividend) income.

So a Scottish resident who pays intermediate tax of 21% on their pension/wages could well only need to pay 20% on any interest (after some at 0%).

Thecar

Many tks for your comments 
Hoedo we work out interest we will get we think ing 50k 1 yr 
50k 2 yr then when the first yr is up put it in for another 1 yr many tks 

EssexHebridean

The calculations for how to work out the interest are in the first reply to you above.