The Personal Savings Allowance (PSA)

The Personal Savings Allowance means you could earn up to £1,000 of interest over a tax year in non-ISA savings accounts before having to pay any tax on it.

The PSA extends to other interest-earning products, such as current accounts.

Interest on ISAs doesn't count towards your PSA, as it is already tax-free.

The amount of your PSA depends on your income-tax rate:


  • If you're a basic rate taxpayer, you can earn up to £1,000 of interest without paying tax.
  • If you're a higher-rate taxpayer, you can earn up to £500 of interest without paying tax.
  • If you're an additional rate taxpayer (45%), you don't get an allowance.

There are Government rules to support the PSA, ensuring banks and building societies do not deduct income tax from interest earned on savings and current accounts.

Do I need to do anything?

You don't need to do anything to receive the tax-free interest you’re entitled to under your PSA — it happens automatically.

If the interest you earn is more than your PSA, tax may become due and will need to be paid to HMRC.

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

How can I find out how much interest I’ve earned?

If you want to see the total interest you've earned on your account, you can request an Interest Certificate. We do not issue these automatically, so you will need to ask for one.

You can make your request in branch, through the Internet Bank or by calling 0800 30 20 11.

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