You don’t pay tax on tax-free savings accounts like:
- Individual Savings Accounts (ISAs)
- some National Savings and Investments products, eg savings certificates or Premium Bonds
For most other savings accounts, Income Tax at 20% is deducted by your bank or building society before it’s paid to you.
Depending on your income, you may:
- get your interest paid tax-free
- be able to claim tax back
- need to pay more tax