1. Overview

You don’t pay tax on tax-free savings accounts like:

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

There are different rules for tax on foreign savings and children’s accounts.