We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Premium Bond Calculator On Moneysavingexpert - Is there an error?

HUMBUG
Posts: 467 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
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 349.8K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 453K Spending & Discounts
- 242.7K Work, Benefits & Business
- 619.5K Mortgages, Homes & Bills
- 176.3K Life & Family
- 255.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards