See below for information about the Personal Savings Allowance scheme, how much you’ll get based on the tax you pay, and possible answers to any other questions you might have.
On 6 April 2016, the government introduced a Personal Savings Allowance (PSA) meaning the vast majority of savers won’t pay tax on their savings interest.
The Personal Savings Allowance is the amount of interest that can be earned tax free and is different depending on what rate of tax you pay. It’s an annual allowance and applies to a tax year (6th April to the 5th April).
Following the introduction of the Personal Savings Allowance on 6 April 2016, we will no longer deduct tax and interest on your savings will be paid gross.
If you exceed your Personal Savings Allowance you'll be responsible for paying any tax you owe on the interest. However HMRC will normally collect the tax by changing your tax code. If you fill in a Self-Assessment tax return, you should carry on doing this as normal.
It depends on your personal circumstances, but ISAs are still attractive because:
For more information on the Personal Savings Allowance (PSA), visit gov.uk/hmrc/savingsallowance
For more information about interest on children's savings accounts, visit gov.uk/savings-for-children
Any reference to tax is based on our understanding of current tax regulations which may change in the future and depends on your individual financial circumstances.
The Co-operative Bank reserves the right to decline or accept any application and/or deposit.
smile, The Co-operative Bank and Britannia are trading names of The Co-operative Bank plc, which is a member of the Financial Services Compensation Scheme (FSCS).
Your eligible deposits with The Co‑operative Bank plc are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: The Co‑operative Bank, Britannia and smile. Any total deposits you hold above the limit between these brands are unlikely to be covered.