Interest on £100,000?

Legacy_user

What sort of return can i get if i invested £100,000? My only stipulation would be that i would need to spend the interest on a monthly basis.

Al_Mac

With ING at 5.5% it would be £437.90 less basic rate tax.:beer:

If I'm wrong, no doubt I'll be corrected.:D

System

Al_Mac wrote:

With ING at 5.5% it would be £437.90 less basic rate tax

Hang on has ING upped the rate without telling me?

Moorepart

Here you go hope it helps you


http://www.thisismoney.co.uk/tools-and-calculators/calculators/index.html?in_page_id=86
With ING at 5.5% it would be £437.90 less basic rate tax.:beer:


No ING is 5%

dunstonh

Does it have to be deposit based?

Al_Mac

Judi wrote:

Hang on has ING upped the rate without telling me?

Oops:o , ever the optimist:D , ING 5% would be £398 less tax. Again willing to be corrected.

System

dunstonh wrote:

Does it have to be deposit based?

Whats 'deposit based' mean?

grumbler

Judi wrote:

Whats 'deposit based' mean?

I think this means a kind of saving account.
Alternative is an investment when money is used to buy shares, bonds etc ...

YorkshireBoy

Judi wrote:

What sort of return can i get if i invested £100,000? My only stipulation would be that i would need to spend the interest on a monthly basis.

As most people are talking ING, their current "gross" monthly interest rate is 4.89%. For a basic rate tax payer, this equates to 3.912% net.

As ING calculate interest daily and credit monthly, your monthly interest payable ranges from £300.10 for a 28 day month to £332.25 for a 31 day month if it's paid away, ie not compounded (where it would equate to 5% AER gross).

System

I should have said before, i am not a tax payer.

grumbler

Judi wrote:

I should have said before, i am not a tax payer.

With such amount of savings you can become one. In 2005/06 you can get £4895 without paying tax. Starting rate for the next £2090 is just 10% though.