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interest rate calculation

mrseyes
mrseyes Posts: 304 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.
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