Savings Interest Reducing Personal Allowance

I haven't earned enough to pay tax for years. I've just started getting a couple of smallish pensions and my estimated income for this year according to HMRC website is around £7000. However my personal allowance has been reduced by the amount of interest I earned last year (£761). I thought one could earn interest up to £6000 (personal Savings Allowance plus Starting Savings Rate) ON TOP OF the personal allowance of £12570? Online it says my tax free amount for the year is now only £11809. Confused.....

Hi Kate G,
In your case, as you are below the tax threshold when you take into account your PAYE income plus the untaxed interest the interest is showing in the code but you will still not pay tax.
If your income increased and you needed to use your personal savings allowance the tax code would be amended to then include this. 
Thank you.