Introduced on 6 April 2016, the Personal Savings Allowance (PSA) allows most UK savers to earn tax-free* interest on their savings, up to certain limits each tax year (which runs 6 April to 5 April).
|Savings interest rate||How much can I save before I have to pay tax on my interest earned?|
|Basic rate taxpayer||Higher rate taxpayer
*Tax-free is the rate payable where interest is exempt from UK income tax. Your savings balance will be eligible for this tax benefit for so long as it is held in a valid cash ISA account.