Calculating Interest

[Joeder]

Hi

Could someone please advice how much interest I would make on €5000 depostited for 2 years at 2.77%? Through Raisin and for example a French bank (or any foreign bank with no witholding tax?

Is there a formula I can use?

I am SO new to all this and genuinely haven#t a clue!!

Thanks

 

[Brendan Burgess]

Roughly speaking

€5,000 @ 2.77% = €138.50 each year.
For two years, it would be a little more than twice that or €277.

If they compound the interest annually, they would pay you interest on the interest, so you would get an extra

€138.50 @2.77% = €3.83

Brendan

 

[Protocol]

Is there a formula I can use?

If you possess a calculator or smartphone, then do this:

(5,000) * (0.0277) = €138.50 per annum

 

[Brendan Burgess]

And if you don't have a calculator or smart phone, you can do it near enough in your head.

2.77% is close enough to 3%

30% of €5,000 is €1,500
3% is 1/10th of that or €150

So 2.77% will be a little bit less

 

[Joeder]

Thank you so much guys xx

 

[messyleo]

But DIRT (33%) would be due on that for most people so after your tax return 175 euro net return after the 2 years