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Is there an online calculator for how much return you would get per month for a sum of money invested at a certain interest rate?

3 replies

ViciousSquirrelSpotter · 25/06/2007 21:15

My mother is selling her house and will have half a million pounds to invest. She will want to live off the interest of this while she is renting, while she looks for a new house.

Am trying to work out what her budget will be for renting, council tax etc., but need to work out what her income would be.

OP posts:
DominiConnor · 25/06/2007 21:21

X * Rate / 100
So if you have 500K and get 4%, it's:

500,000 * 4 /100 = 20K per year.

I am not a qualified IFA (but a CQF), so cannot give detailed advice, but the best option is probably to put most of it in a "savings" account which has restrictions on withdrawal, but leave (say) 20K in quick access account.

Of course she should shop around, since this varies a lot, and almost certainly the worst option is her current bank.

ViciousSquirrelSpotter · 25/06/2007 21:27

Thank you DC

I thought it was that but it seems too easy. Thought there must be more complications to it - for example, that sum must be before tax, no?

OP posts:
DominiConnor · 25/06/2007 22:30

Yep, before tax, but typically you'd expect this to be deducted at source.
The more complex calc is if you leave it in the bank, and let the interest accrue.

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