Do I have to pay tax on my interest?

Updated 1 week ago

All UK savings accounts pay you gross interest, which means nothing is taken off for tax.

So, depending on your individual circumstances, you may need to declare your earnings to HRMC if they exceed your annual Personal Savings Allowance (PSA). Introduced in 2016/17, the PSA gives all tax-payers a tax-free savings allowance. If you're a basic rate tax-payer, you can earn up to £1,000 per year tax-free. Higher earners can earn up to £500 per year.

When should I declare my earnings?

For fixed term accounts, you only need to consider paying tax on your earnings in the financial year the fixed term ends.

Can I download a tax statement?

You can download a 'Statement of Account' from your Account Dashboard:

  • If your Fixed Term account has matured, this statement will show you the total interest you earned throughout the term.
  • If your Fixed Term account is still running, then this statement gives you a snapshot of progress to date. This shouldn't be used as a tax statement.

To download a statement, go to your main dashboard and click on your Fixed Term Account(s). There’s a link to generate a statement in the Summary section for each account that you have.

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