Important information
All interest will be paid gross without tax taken off. You may still be required to pay tax if your savings interest is above your Personal Savings Allowance (PSA). It is your responsibility to advise the appropriate tax authorities of any interest recovered.
Please refer to the GOV.UK website for details on the different tax thresholds and what action may be required by you.
We can deduct any tax from the rate of interest where we’re allowed to do so by law.
If you are responsible for tax in a country other than the UK, or in addition to any UK tax responsibility you may have, we may provide details of your account to the tax authorities of these other countries if we’re required to do so by law.
Lets dive deeper
Interest rates can be tricky to understand and are often referred to as APR, EAR, and AER. We’re here to help you understand different types of interest rates, whether you're savings or looking for a mortgage.
APR stands for annual percentage rate. It helps you work out how much it might cost you to borrow money over a year, including interest and other possible fees. APR is a way to show the cost of borrowing and all lenders, like banks, building societies and all other financial services, have to tell their customers what their ‘representative’ APR is.
When a financial service advertises with a representative APR, for a loan for instance. They have to offer that rate to at least 51% of customers who are successful in their loan application. Whilst the other 49% are usually offered a different rate, normally a higher one.
AER stands for Annual Equivalent Rate. It shows what the interest rate would be if interest was paid and added to an account once each year. The contractual rate of interest payable before the deduction of income tax is referred to as the gross rate. ISAs are exempt from income tax because interest is paid tax free.
Quite the opposite to representative APR, personal APR is the actual rate you are offered. Personal APR looks at your credit history, financial situation, how much you want to borrow and over what period of time. Due to your eligibility, your personal APR could be the same as (or sometimes better than) the representative APR, but it could also be higher.
