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Interest Question

Can someone please tell me the formula to work out interest from savings?

Lets say for example 5k @ 7% fixed for 1 year- Normal tax payer

Plus what is the calculation to work out the same as above buy over 6 months?

Many Thanks

Comments

  • whu
    whu Posts: 23,461 Forumite
    10,000 Posts Combo Breaker
    just take 20% of 7 =1.4 - therefore your net interest is 5.6%- which will give you 5.6% x £5k=£280 at the end of the year
    for 6 months just divide by 2 - hope that helps
    Keep the Faith:cool:
  • planemad
    planemad Posts: 569 Forumite
    Part of the Furniture Combo Breaker
    Many Thanks
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