Tax on savings interest

I am retired and have no any income. The only income I have is interest on my bank savings. I would like to know how much tax allowance I can have on my earned interest ?

Hi Sorbychili You will have your personal allowance £12570 and then there can be the starting rate for savings and Personal Savings Allowance. You can see guidance here:  Tax on savings interest Thank you.

Question re when tax should be paid on interest in below scenario I hold a 2 year fixed deposit starting June 2024 and ending June 2026. The fixed deposit is such that one does not have option to withdraw funds at any time. I have selected that annual interest due is paid directly back in to the fixed deposit account, that is interest cannot be withdrawn. I will therefore only have access to capital plus any interest accrued after 2 years once fixed deposit as matured, ie June 2026. Please advise when tax on interest would have to be paid. Do I pay on interest accrued in June 2025 even though I have no access to the interest and then again for year 2026? Or do i pay tax for full 2 years in June 2026 when I can access all interest? As mentioned fixed deposit is such that funds cannot be withdrawn at any time. Thank you

Hi Joglenscowen Scowen,
As you cannot access it,  all of the interest is declared in the tax year the bond matures.
Thank you. 

Hi, my mum in law who is 84 receives a combined £16144 in uk state and private pensions. Please could you let me know how much she can earn in interest on savings before having to pay any tax on them so I can answer her query for her. Thank you.

Hi JonTyson
If your only income is state pension and interest if this is less than £17570 then you will receive the starter rate of £5000. See link below:
Tax on savings interest
Thank you.