4% Per Annum

[Ric.ror]

If an account pays 4% per annum on £10,000 how much would that be per month bearing in mind they make payments twice a year

Thanks for the help on the obvious but I have a cold and I’m light headed

[TonyV]

4% = £4 per 100 so *another 100 = £400 PA / by 12 = £33.33 / month less any tax payable.

[-SharonA-]

Good deal!! Who is giving this percentage??

[ubasses]

From one of Ric.ror's previous posts it will probably be peer to peer.

[New Judge]

Making payments twice a year would make a slight difference if the interest was added to the capital.

In the first six months you would earn (£10,000 x 4%)/2 which is £200. Add this to the capital and in the second half of the year you would earn (£10,200 x 4%)/2 which is £204. So £404 in total, or £33.67 per month. If you are a basic rate taxpayer no tax would be payable so long as you do not receive more than £1,000 in total from interest payments. If you pay tax at the higher rate this limit is £500 and if you pay tax at the additional rate all your interest income will be taxed.

[TonyV]

NJ I only showed the calculation for simple interest rather than compound, the differences are minimal.

[Ric.ror]

Thank you all for your answers
Yes it was the P2P group I used but this was a 30 day access account
I had some money in but withdrew after just over the 30 days minimum as I have decided to buy a B2L property but wondered if the returns would be better left where they are
Sorry if I’m not making sense but I had little sleep last night with a silly cough waking me up :-((

[Ric.ror]

Can you believe it since my last post my B2L has fallen through

[fiction-factory]

Yes, New Judge has it, although it does depend on what the headline interest rate is- the AER usually differs very slightly from the headline figure

[Ric.ror]

Thank you all for your answers

[Peter Pedant]

compounding twice at 2% is not the same as 4% once a year

one is £104 and t'other 100+2 + 2.04

and as comeone pointed out to me thirty years ago - it supplied the half a crown 2/6 for agent's clerk
yeah it was that long ago