How does interest on my bank balance work?

Interest is calculated daily on your bank balance and paid into your account once a month, starting from the day you open your account.

What about pending payments?

If you have an outbound payment that hasn't been processed by the end of the day, you'll keep earning interest on that amount until it clears.

Can the rate change?

Unless we've told you otherwise, the interest rate on your bank account balance is variable, meaning it can go up or down.

If we plan to reduce your rate, we'll give you at least 2 months' notice first. If we're increasing it, we'll apply the change straight away and send a confirmation email afterwards.

Do I have to pay tax on my interest?

Depending on your circumstances, you may need to declare your earnings to HMRC if they exceed your annual Personal Savings Allowance (PSA). Introduced in 2016/17, the PSA gives all taxpayers a tax-free savings allowance – up to £1,000 a year if you're a basic rate taxpayer, or £500 a year for higher earners.

You may need to pay tax on interest earned in the tax year it was applied to your account.