Do I need to pay tax on my savings?

When it comes to your savings you have an annual tax free allowance or Personal Savings Allowance (PSA) that lets you earn up to £1,000 in interest without having to pay tax on it. However, this can differ depending on what rate of income tax you pay.

Will interest earned from a cash ISA count towards my Personal Savings Allowance?

It's worthwhile noting that cash ISAs are tax free. You won’t have to pay any tax on the interest you earn from money in a cash ISA account and this doesn’t count towards your PSA.

What our Personal Savings Allowance calculator will provide?

Our Personal Savings Allowance calculator will allow you to work out if you have to pay tax on your savings. This is, however, for educational purposes only and aims to provide you with an approximate idea of any tax you might have to pay, based on the information you provide.

How we work out your results

Assumptions

Our calculator applies a savings starting rate of £5,000 for those on a low income.
Our calculator assumes a standard personal allowance of £12,570.
Where income is over the £100,000 limit, the standard personal allowance of £12,570 is reduced by £1 for every £2 earned.
Where income is £125,140 or above, the Personal Savings Allowance is zero.
The result provided assumes that interest is accessible and/or is received within the current tax year.

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Personal Savings Allowance calculator

Interest rates can be subject to change and you might find that with this change, you could reach your Personal Savings Allowance (PSA) quicker than you think.

Our Personal Savings Allowance calculator can help give you an idea if you might be over your PSA. We work this out by taking details like your current income and the amount of money you have in your UK savings accounts.

What is your annual income?

This should be your income before tax and should not include savings interest.

More about taxable income? Income tax is a tax you pay on your income. You pay tax on things like:

Money you earn from employment or profits from self-employment
Rental income or trading income
Retirement income such as pension, drawdown or annuities

Please note: Do not include any interest from saving accounts in this figure.

Tell us about your savings

Enter the balance and interest rate for each of your savings' accounts (remember, please don't include any Cash ISAs you may have).

What is your savings balance? 

Your ‘savings balance’ is how much you have across your UK savings accounts.

Annual interest rate 

Your annual interest rate represents the percentage of interest earned on your savings balance over the course of a year. It determines how much your savings will grow over time.

Joint savings account

If your account is a joint savings account, please only include half of your savings balance value below.

Your savings balances and interest rates

Your results

Based on savings accounts you’ve told us about it amounts to:

Your total savings balance

This is the total sum of all entered savings balances, showing your overall accumulated savings.

Interest received (calculated on 12 months but based on being accessible in this tax year)

This is your potential earnings on total savings balance, this is calculated based on the annual interest rate.

Your Personal Savings Allowance

This is the tax-free interest amount which is decided by your taxpayer banding, allowing tax-free earnings on savings.
Please note: This Personal Savings Allowance (PSA) calculator uses income banding which assume that you have a standard personal allowance of £12,570. This is the amount you can earn without having to pay any income tax.

Amount liable to tax on your savings

This is the amount of savings interest that is liable to tax based on the information you have provided.

What does this mean?

Based on the information provided, it seems you might be subject to tax on your savings interest. You could consider utilising your ISA annual allowance with a cash ISA to keep some of your savings interest tax-free.  

Tax benefits are subject to change and depend on individual circumstances.  

If you're shopping for a new savings account, why not explore our range of notice, easy access and fixed-term accounts.

Explore Aviva Save

Looking for a different savings account?

If you're shopping for a new savings account, why not explore our wide range of notice, easy access and fixed term accounts.

Aviva Save "Aviva save"

Making use of the ISA allowance

If you're looking to give investing a go you can take a look at our ISA, with flexible withdrawals and a range of investments for you to choose from, this might just be exactly what you're looking for.   

If you moved into an ISA your money will be invested, which can mean your money can go down as well as up, and you may get back less than you put in, charges will also apply.

Aviva Stocks & Shares ISA "Aviva stocks and share isa"

Learn more about savings

Keen to start saving? Our educational articles will help you learn more.

Do I need to pay tax on my savings?

Will interest earned from a cash ISA count towards my Personal Savings Allowance?

What our Personal Savings Allowance calculator will provide?