Personal Savings Allowance
On 6 April 2016, the Government introduced the Personal Savings Allowance. This allows you to earn interest on your savings and current account balance tax free, up to a certain amount.
- Basic rate tax-payer can earn £1,000 in interest tax free
- Higher rate tax-payer can earn £500 in interest tax free
What this means for you?
- Up to 95% of people won’t pay tax on savings interest. Find out more on the HMRC website
- Tesco Bank won’t deduct tax from the interest you earn
Looking to save
You can compare our range of savings accounts to help you consider which account might be right for you.
How much will your allowance be?
For details on what your Personal Savings Allowance will be in the current tax year, please visit the HMRC website.
If you exceed your Personal Savings Allowance you may still need to pay tax on the interest you earn. HMRC will normally collect this by changing your tax code.
The current tax rules are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
For more information please visit:
Have a question or need help applying? Our friendly, UK-based customer service team is here to help.