Hi,
Possibly a silly question but if I don't ask I'll never know... How do I work out the net interest rate on a savings account when given the gross figure? Assuming I'm a standard rate payer.
Cheers!
Full Version: Working Out Gross And Net
Deduct 20%.
I.e. 5% gross is 4% net (1 over 5 is 20%).
Or to do it easy times it by 0.8.
I.e. 5% gross is 4% net (1 over 5 is 20%).
Or to do it easy times it by 0.8.
ah thanks, i've been trying that however have now realised that I've been looking at AER and not gross...
No probs.
You should really be looking at the Gross AER "Annual Equivalent Rate" or APR "Annual Percentage Rate" (both mean the same thing, although AER is usually refers to savings, APR to loans).
You should really be looking at the Gross AER "Annual Equivalent Rate" or APR "Annual Percentage Rate" (both mean the same thing, although AER is usually refers to savings, APR to loans).
QUOTE(Jason @ Sep 8 2007, 03:01 PM) 
Deduct 20%.
I.e. 5% gross is 4% net (1 over 5 is 20%).
Or to do it easy times it by 0.8.
I.e. 5% gross is 4% net (1 over 5 is 20%).
Or to do it easy times it by 0.8.
Thanks I've been wondering about that for some time too.
I thought I would add:
If you are a higher rate payer, it's 0.6 of gross.
And if you have a net amount paid to you, and wonder what extra tax to put aside, it is a quarter of that net amount.
If you are not sure how to work out a quarter, then can I interest you in my portfolio of BTL Seafront Investment properties in Vanuatu?
If you are a higher rate payer, it's 0.6 of gross.
And if you have a net amount paid to you, and wonder what extra tax to put aside, it is a quarter of that net amount.
If you are not sure how to work out a quarter, then can I interest you in my portfolio of BTL Seafront Investment properties in Vanuatu?
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