Do I pay tax on interest earned in a current account?

Interest earned on a current account is taxable income in the UK, but most people won't pay tax on it thanks to the Personal Savings Allowance (PSA) – £1,000 per year for basic rate taxpayers and £500 for higher rate taxpayers. At current Biscuit rates, you would need a very large balance to exceed the PSA from your current account alone. Interest from linked savings products like the Regular Saver counts towards the same allowance. We recommend checking HMRC guidance for your personal situation.