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Premium Bond Calculator On Moneysavingexpert - Is there an error?
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HUMBUG
Posts: 469 Forumite
The link is below:
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/
When it was comparing winnings to a saving account using 50k at 4.85% at Basic Rate Tax it gives a return value £2140.
But 50,000 x 4.85% = £2425
Therefore 80% of £2425 = £1940
Is my maths flawed?
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/
When it was comparing winnings to a saving account using 50k at 4.85% at Basic Rate Tax it gives a return value £2140.
But 50,000 x 4.85% = £2425
Therefore 80% of £2425 = £1940
Is my maths flawed?
0
Comments
-
You forgot the savings allowance...£1000 for Basic Rate tax payers
https://www.gov.uk/apply-tax-free-interest-on-savings
50,000 x 4.85% = £2425
20% tax payable on £1425 = £285
£2425 - £285 = £2,140
2
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