Annual Income Calculator

Compare the bank base rate cuts on your deposit income.

The Bank of England’s decision to cut interest rates is designed to help out those with mortgages but there will be adverse side effects for savers, who have seen dramatic cuts in the rates being offered by banks and building societies. Last year, savings accounts were offering rates of as much as 7% per annum and expert financial researchers, Defaqto, believe that from March 2009 more than 70% of instant access savings accounts will pay less than 1% per annum interest.

To help you compare the dramatic effects of the rate cuts on your deposit income, simply input the amount you have in deposit accounts and the interest that you currently earn. This will calculate your annual income now compared to what it was when the Bank Base Rate was much higher. This calculator assumes that you are a basic rate tax payer (at 20%), but this can be changed to 0% for non tax payers or 40% if you are a higher tax rate payer.

* The previous rate of 5.5% is what Bank Base Rate was in January 2008 and you can change this to a different figure if you choose.