Interest On Savings

[tezzer]

What is the best investment on say 20k sterling over 12months.

1.75% tax free
or
3% less tax at 10%

Regards,
Tezzer.

[hc4361]

1.75 tax free = £350

3% tax free = £600. Tax = £60. Total £540

[Old_Geezer]

At a rough guess, 10% of 3% would be 0.3%, leaving 2.7% approximately left ? So I'd plump for the second option.

[New Judge]

I don't know whether this is a hypothetical question or something you are trying to determine for real, but you should also bear in mind that income tax in the UK is 20%. There is a 10% starting rate for savings on the first £2,710 of savings income. However it only applies if your total income (savings income and non-savings income) is less than the current personal allowance (£9,440).

[Peter Pedant]

God these rates are crap arent they ?

[hc4361]

That's why I've bought a load of Premium Bonds, Peter.