Bank intrest?

[Nublue 22]

Right all, I opened an account that aliowes me to put £200 a month in,  at 8% Intrest, 12 months later I have a statement, it's showing £103 intrest. £192 me thinks is right, it's a child's account , any help what it should be please or how it's worked out? 

Edited Sunday at 20:48 by Nublue 22
I pads go mad

[Windswept]

There's various calculators online and 103 sounds correct, such as https://www.co-operativebank.co.uk/products/savings/interest-calculator/

 

Edit to add, your £192 is based on the whole £2,400 being in at the start when you are only starting with £200. Your last £200 is only getting one twelfth of 8% interest.

Edited Sunday at 21:00 by Windswept

[Stonepark]

10 minutes ago, Nublue 22 said:

Right all, I opened an account that aliowes me to put £200 a month in,  at 8% Intrest, 12 months later I have a statement, it's showing £103 intrest. £192 me thinks is right, it's a child's account , any help what it should be please or how it's worked out? 

They are paying interest at end of month, taking into account when your input funds clear at start of the month.

If you opened with £200 on 1st of month and made 11 further payments on 1st of month, you would have paid in £2400 and be expecting £102.67 interest.

[Nublue 22]

1 hour ago, Stonepark said:

They are paying interest at end of month, taking into account when your input funds clear at start of the month.

If you opened with £200 on 1st of month and made 11 further payments on 1st of month, you would have paid in £2400 and be expecting £102.67 interest.

I am at a loss with the figures, is not 8% on £200 £16? Thanks for your contribution I am just wondering  how it is worked out. 

[oowee]

10 minutes ago, Nublue 22 said:

I am at a loss with the figures, is not 8% on £200 £16? Thanks for your contribution I am just wondering  how it is worked out. 

8% on first £200 for 12 months, 8% on second £200 for 11 months and so on. Last £200 will only recieve 8% for one month so just over 1£. So on average there is only £1200 in the account with 8% interest so about £100. 

[elgreco]

Yes, 8% of £200 is £16. Then 11/12 of 8% the next month which is £14.66. The next month is 10/12 of 8% which is £13.33. The next month is 9/12 of 8% which is £12 …………..and so on 

[Stonepark]

25 minutes ago, Nublue 22 said:

I am at a loss with the figures, is not 8% on £200 £16? Thanks for your contribution I am just wondering  how it is worked out. 

The compound interest is calculated monthly, based on the annual equivalent rate of 8%.

 

£16 per month per £200 is the simple interest rate.

[TOPGUN749]

10 hours ago, Nublue 22 said:

Right all, I opened an account that aliowes me to put £200 a month in,  at 8% Intrest, 12 months later I have a statement, it's showing £103 intrest. £192 me thinks is right, it's a child's account , any help what it should be please or how it's worked out? 

£103 interest is correct, I had the same Nationwide account recently! The interest is paid for the amount in your account each month, the first month it’s £200, and goes up to £2400 in the twelve month!

[Krico woodcock]

Do you have to pax tax on money earned on intrest? We have to pay 33% DIRT tax on intrest.  Eg we only get €67 for every €100 earned on intrest . Plus intrest rates are very poor.   Best is 3% on deposit account locked in for 2 years..

Edited 8 hours ago by Krico woodcock

[Lloyd90]

2 minutes ago, Krico woodcock said:

Do you have to pax tax on money earned on intrest? We have to pay 33% DIRT tax on intrest.  Eg we only get €67 for every €100 earned on intrest . Plus intrest rates are very poor.   Best is 3% on deposit account locked in for 2 years..

Yes, people should, I think over a certain (but not very big) amount. 
 

Anyone with sense would be taking advantage of an ISA or similar arrangement that is tax free. 

[Krico woodcock]

1 minute ago, Lloyd90 said:

Yes, people should, I think over a certain (but not very big) amount. 
 

Anyone with sense would be taking advantage of an ISA or similar arrangement that is tax free. 

What intrest rates are an ISA

[Lloyd90]

Just now, Krico woodcock said:

What intrest rates are an ISA

You can have a cash ISA, or a stocks and shares ISA. 
 

I have opened my daughter a S&S isa and will choose the funds / stock myself. 
 

Not sure on rates for a cash ISA as usually lower (but lower risk). 

[oowee]

4 minutes ago, Krico woodcock said:

Do you have to pax tax on money earned on intrest? We have to pay 33% DIRT tax on intrest.  Eg we only get €67 for every €100 earned on intrest . Plus intrest rates are very poor.   Best is 3% on deposit account locked in for 2 years..

The first £1000 is free for a basic tax payer dropping to £500 for a higher rate payer and nothing on the additional rate. 

[Krico woodcock]

5 minutes ago, Krico woodcock said:

What intrest rates are an ISA

I don't think tax should be paid on intrest earned. I already pay plenty of tax, on my wages, etc without paying another 33% on my savings.  And if I decide to take a risk and invest  as in  stocks, shares  etc, not bank ,my hard earned savings,  the government will take 44% tax  !

Edited 8 hours ago by Krico woodcock

[Lloyd90]

Just now, Krico woodcock said:

I don't think tax should be paid on intrest earned. I already pay plenty of tax, on my wages, etc without paying another 33% on my savings.  And if I decide to take a risk and invest my hard earned savings,  the government will take 44% tax  !

Unless you’re a multi multi millionaire where you pay a much lower rate than someone earning money on PAYE. 
 

Sunak being a prime example. 

[button]

2 minutes ago, Lloyd90 said:

Unless you’re a multi multi millionaire where you pay a much lower rate than someone earning money on PAYE. 
 

Sunak being a prime example. 

How do you work that out?

[oowee]

1 minute ago, button said:

How do you work that out?

Because the taxation system has lots of flaws. Set up a business make a loss. Lend the business your own money get paid back with interest. Pay yourself minimum salary (tax free) top up with dividends and get a lower tax rate than PAYE. Get your kids and wife on the payrole for some non existent marketing job. Claim expenses for your home office. Have a team meeting abroad for two weeks so you can have your holiday tax deductible. It's endless. That's why we need labour to get its act together and chop down these self employed tax dodgers. 

[Lloyd90]

5 minutes ago, button said:

How do you work that out?

https://www.bbc.co.uk/news/uk-politics-68253857.amp
 

Works out about 23% tax overall on an income of £2.2m. 
 

Yet I’m paying 40% + on earnings over £52k or thereabout, earning a lot less than 100k. 
 

Think my tax worked out about 33% over total income last year. 
 

 

1 minute ago, oowee said:

Because the taxation system has lots of flaws. Set up a business make a loss. Lend the business your own money get paid back with interest. Pay yourself minimum salary (tax free) top up with dividends and get a lower tax rate than PAYE. Get your kids and wife on the payrole for some non existent marketing job. Claim expenses for your home office. Have a team meeting abroad for two weeks so you can have your holiday tax deductible. It's endless. That's why we need labour to get its act together and chop down these self employed tax dodgers. 

Exactly. 
 

Get a car pickup as a “work vehicle”, write it off the business as a devaluing asset, yet I buy the exact same car on PAYE and can’t claim back the VAT, VAT on fuel, depreciation etc. 

 

Lots of “loopholes” that they intentionally leave open. 
 

I just want an even playing field. 

[sitsinhedges]

14 minutes ago, Lloyd90 said:

https://www.bbc.co.uk/news/uk-politics-68253857.amp
 

Works out about 23% tax overall on an income of £2.2m. 
 

Yet I’m paying 40% + on earnings over £52k or thereabout, earning a lot less than 100k. 
 

Think my tax worked out about 33% over total income last year. 
 

 

Exactly. 
 

Get a car pickup as a “work vehicle”, write it off the business as a devaluing asset, yet I buy the exact same car on PAYE and can’t claim back the VAT, VAT on fuel, depreciation etc. 

 

Lots of “loopholes” that they intentionally leave open. 
 

I just want an even playing field. 

If you want a level playing field then take a risk and start your own business, then you can enjoy these benefits. It's not as good as you think though.

[button]

34 minutes ago, oowee said:

Because the taxation system has lots of flaws. Set up a business make a loss. Lend the business your own money get paid back with interest. Pay yourself minimum salary (tax free) top up with dividends and get a lower tax rate than PAYE. Get your kids and wife on the payrole for some non existent marketing job. Claim expenses for your home office. Have a team meeting abroad for two weeks so you can have your holiday tax deductible. It's endless. That's why we need labour to get its act together and chop down these self employed tax dodgers. 

Ok, so your business is making a loss, how does it pay you back? How does it pay dividends as these can’t be declared if it’s not making profit? 

[Lloyd90]

24 minutes ago, sitsinhedges said:

If you want a level playing field then take a risk and start your own business, then you can enjoy these benefits. It's not as good as you think though.

Yes sure, sounds fair. 
 

I’ll just start the “business” off £6,000,000,000 from my father in law. 

[button]

35 minutes ago, Lloyd90 said:

https://www.bbc.co.uk/news/uk-politics-68253857.amp
 

Works out about 23% tax overall on an income of £2.2m. 
 

Yet I’m paying 40% + on earnings over £52k or thereabout, earning a lot less than 100k. 
 

Think my tax worked out about 33% over total income last year. 
 

 

Exactly. 
 

Get a car pickup as a “work vehicle”, write it off the business as a devaluing asset, yet I buy the exact same car on PAYE and can’t claim back the VAT, VAT on fuel, depreciation etc. 

 

Lots of “loopholes” that they intentionally leave open. 
 

I just want an even playing field. 

Firstly compare apples with apples, he had a mix of income tax and CGT, if you go purely on earned income he paid more

Move to Scotland and you pay more tax

Sounds like sour grapes, try running a business when you have 40 staff depending on you to pay their mortgage, wealth creators should be encouraged as they are the back bone of the economy

Just now, Lloyd90 said:

Yes sure, sounds fair. 
 

I’ll just start the “business” off £6,000,000,000 from my father in law. 

Exactly sour grapes 

[Lloyd90]

8 minutes ago, button said:

Ok, so your business is making a loss, how does it pay you back? How does it pay dividends as these can’t be declared if it’s not making profit? 

That’s the point, these “businesses” are set up for the sole purpose of “making a loss”… same as the billionaires and multi millionaires buying farms and claiming subsidies, just to avoid inheritance tax. 

1 minute ago, button said:

 

Exactly sour grapes 

Sour grapes to expect a billionaire to pay the same % as I do? 

[sitsinhedges]

2 minutes ago, Lloyd90 said:

Yes sure, sounds fair. 
 

I’ll just start the “business” off £6,000,000,000 from my father in law. 

Didnt someone had to start a business to provide you with a job?

[button]

1 minute ago, Lloyd90 said:

That’s the point, these “businesses” are set up for the sole purpose of “making a loss”… same as the billionaires and multi millionaires buying farms and claiming subsidies, just to avoid inheritance tax. 

Sour grapes to expect a billionaire to pay the same % as I do? 

Seriously think about it “making a loss” it is clear you are working on hear say and been told in the local, are you saying it loss making but really makes a profit? Talk me through that one

2 minutes ago, sitsinhedges said:

Didnt someone had to start a business to provide you with a job?

Guessing public sector