How Much Would £500.00

[trt]

be worth when put in a saving account with 3% interest in 16 years?

[pixie373]

Is it simple or compound interest?

[jno]

£807.55

http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

[Tilly2]

I make it £546.36.

[Tilly2]

Mine's wrong. I forgot the sixteen years bit. Sorry, It must be the heat!

[Fibonacci]

ompound interest and 3% APR
initial amount £500.00
end of year 1 £515.00
end of year 2 £530.45
end of year 3 £546.36
end of year 4 £562.75
end of year 5 £579.64
end of year 6 £597.03
end of year 7 £614.94
end of year 8 £633.39
end of year 9 £652.39
end of year 10 £671.96
end of year 11 £692.12
end of year 12 £712.88
end of year 13 £734.27
end of year 14 £756.29
end of year 15 £778.98
end of year 16 £802.35

[Tilly2]

A blackbird's warning call can be heard for miles around. It's very distinctive.
Cheep,cheep,cheep....................................cheep, cheep, cheep.

[Tilly2]

Gordon Bennett! Sorry.........again.

[tonyav]

LOL, go back to bed, Yilly.

[factor-fiction]

I agree with Fibonacci's figure if interest is added at the end of each year.
http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php


I wonder if jno's model has used monthly interest.

I expect trt only needs an approximate figure though so either answer will do.

If you are a taxpayer the interest will be taxable though. If you pay tax at 20% the net rate falls is 2.4% pa and the value in 16 years will be just under £734.

[trt]

Thanks folks.
would I be able to put it in an ISA instead for my grandson or are children not allowed, he's 2 years old.

[Gizmonster]

I agree with £802.35

1.03^16 x 500 = £802.35.

[factor-fiction]

Have a look at these, trt

http://www.moneysavingexpert.com/savings/junior-isa

[bednobs]

TBH isas aren't giving 3% anyway are they? plus, children are not taxpayers (in general), so there's not much advantage in an isa in my opinion

[factor-fiction]

The MSE link suggested some are paying 3.25% but they are probably introductory offers and I doubt the rate will be maintained whilst base rates are so low