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Q: Is interest on savings accounts subject to tax?

No. Gross interest is the rate payable to you. We will not take tax off the interest you earn. It is your responsibility to declare any interest you earn over your personal savings allowance directly to HMRC.

Basic rate taxpayers can earn up to £1,000 interest on savings tax free.

Higher rate taxpayers can earn up to £500 interest on savings tax free.

Additional rate taxpayers will pay tax on all savings interest earned.

Cash Individual Savings Accounts (ISAs) pay interest tax-free provided all terms and conditions of the account are met.