📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

interest rate calculation

Options
mrseyes
mrseyes Posts: 302 Forumite
Part of the Furniture 100 Posts Combo Breaker
in Savings & investments
Please can someone work this out for me?

1 yr Fixed rate bonds

6.81% gross/AER what is net?

7.01% gross/AER what is net?

I am a basic rate payer.

Thanks in advanced

Comments

  • Baldur
    Baldur Posts: 6,565 Forumite
    mrseyes wrote: »
    Please can someone work this out for me?

    1 yr Fixed rate bonds

    6.81% gross/AER what is net?

    7.01% gross/AER what is net?

    I am a basic rate payer.

    Thanks in advanced
    Just pop your numbers in HERE

    This gives 6.81% = 5.45% Net; 7.01% = 5.61% Net
  • Consumerist
    Consumerist Posts: 6,311 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    mrseyes wrote: »
    Please can someone work this out for me?

    For basic-rate taxpayers, savings interest is taxed at 20%.

    Accordingly, the net rate, for basic-rate taxpayers, is 0.8 x gross rate.

    HTH
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.1K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244.1K Work, Benefits & Business
  • 599.1K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture