Personal Savings Allowance explained

Your Personal Savings Allowance is the amount your savings account can earn in tax-free interest each tax year (between 6 April and 5 April).

Your Personal Savings Allowance is separate from any ISA allowance you may have. The amount of allowance depends on the type of taxpayer you are:

• basic rate taxpayers (20%) can earn £1,000 in tax-free interest each year
• higher rate taxpayers (40%) can earn £500 in tax-free interest each year
• additional rate taxpayers (45%) don’t get an allowance

Check the taxpayer thresholds on GOV.UK (opens in a new window)

Any interest you earn from your Nationwide current or savings accounts, not including ISAs.

You don't need to do anything to receive the tax-free interest you’ve earned under your PSA – it happens automatically.

If the interest you earn is more than your PSA, you may have to pay any tax due to HMRC.

HMRC will normally collect tax by changing your tax code or through self-assessment.

See HMRC's guidance on savings interest tax (opens in a new window)

We can provide an interest certificate for certain accounts, which shows the interest earned.

If you need an interest or Section 975 (S975) certificate for a previous tax year (2015/16 or earlier will be an S975), you can request it from any Nationwide branch or online on our internet bank.