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Interest On Savings

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tezzer | 14:31 Tue 22nd Oct 2013 | Business & Finance
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What is the best investment on say 20k sterling over 12months.

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

Regards,
Tezzer.
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1.75 tax free = £350

3% tax free = £600. Tax = £60. Total £540
At a rough guess, 10% of 3% would be 0.3%, leaving 2.7% approximately left ? So I'd plump for the second option.
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).
God these rates are crap arent they ?
That's why I've bought a load of Premium Bonds, Peter.

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