Page PSA image
Page PSA image
Personal Savings Allowance
From 6 April 2016, one of the biggest changes for savers ever was introduced, the Personal Savings Allowance (PSA).

The personal savings allowance affects how much tax you pay on the interest earned on your savings. See the below table for the most up to date allowance.

How your Personal Savings Allowance depends on your taxable income:
Tax brand
Personnal Savings Allowance
Basic rate tax - 20%
Higher rate tax - 40%
Additional rate tax - 45%
No Allowance
Source: HMRC
*Scottish tax rates may differ

Basic rate taxpayers are able to earn up to £1,000 in savings interest per year, tax-free.

Higher rate taxpayers are eligible for a £500 tax-free allowance per year.

Additonal rate taxpayers are not be entitled to a Personal Savings Allowance.

The majority of savers won’t need to do a thing, as they’re not likely to earn more than the Personal Savings Allowance therefore most savers will receive tax free interest.

This is a big change for UK savers and we want our customers to be as well-informed as possible. So this part of our website is dedicated to helping you understand your new Personal Savings Allowance.

Our Customer Services team are currently experiencing very high volumes of applications, calls and correspondences, resulting in service times that are longer than usual. Unfortunately your wait time to get through to us, or to receive a response from us, is taking longer than we would like. If you have already emailed or messaged us, please know we are working through it as quickly and as soon as possible. Please bear with us, and we ask that you do not send repeat emails and secure messages as this may add to the delay.

Our website remains available 24/7 so you can apply, access and manage your account online as usual. Thank you for your continued patience at this time.