Earn tax-free interest up to your Personal Savings Allowance. That’s on all savings accounts except ISAs.

Personal Savings Allowance

It’s 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)


What counts towards your Personal Savings Allowance

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


What you need to do

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)


Checking how much interest you’ve earned

You can check how much interest you've earned with an Interest Certificate. You can request an Interest Certificate for each of your accounts: