Post by keitha on Jul 6, 2024 11:17:43 GMT
Been offered an upgrade to a bank account
If I pay £5 a month they will give mean extra 0.1% interest on savings
Cost £5 a month £60 a year
if £60 is 0.1% ( to break even )
then £600 is 1% and £60,000 is 100% so I would need £60,000 in cash in that 1 account to break even
However as the total interest rate would be 4.7% I would be making 47 * £60 in interest £2820 this is well over the £1000 tax allowance so I being a poor pensioner and only on 20% rate would need an extra £15 to make it worthwhile ie £75,000 invested, and remember that's just to break even.
of course were I a higher rate tax payer the situation would require a much bigger investment that would take me over the protection limit
If I pay £5 a month they will give mean extra 0.1% interest on savings
Cost £5 a month £60 a year
if £60 is 0.1% ( to break even )
then £600 is 1% and £60,000 is 100% so I would need £60,000 in cash in that 1 account to break even
However as the total interest rate would be 4.7% I would be making 47 * £60 in interest £2820 this is well over the £1000 tax allowance so I being a poor pensioner and only on 20% rate would need an extra £15 to make it worthwhile ie £75,000 invested, and remember that's just to break even.
of course were I a higher rate tax payer the situation would require a much bigger investment that would take me over the protection limit
