Personal Savings Allowance (PSA)

Your Personal Savings Allowance is the total amount of interest you can earn in a tax year without paying tax. If you're a basic rate tax-payer, your Personal Savings Allowance is £1,000. If you're a higher rate tax-payer it is £500. If you earn £150,000 or more you won't have a Personal Savings Allowance.

HMRC will normally collect the tax by changing your tax code. Banks and building societies will give HMRC the information they need to do this. If you fill in a Self-Assessment tax return you should carry on doing this as normal.

From 6 April 2016 we no longer deduct tax from the interest earned on your account. For more information or guidance on whether you are liable to pay tax on the interest earned on your account you can contact HMRC directly. Learn more

You only need to pay tax on any interest you earn above your Personal Savings Allowance. You are responsible for making sure you're paying the correct tax. If you are unsure whether you are required required to pay tax please contact HMRC on their website.

Yes. It affects everyone with a non-ISA savings or current account that pays credit interest.

If you are registered for Online Banking you can view your Certificate of Interest online in the document store. We no longer automatically issue a Certificate of Interest via post, but if you would like one sent, please contact us.

No. You can still save up to your annual ISA subscription limit per tax year. Your Personal Savings Allowance covers the interest you earn on all your non-ISA accounts with all banks and building societies as this is already tax free.