[ˈseɪvɪŋz ˈɪntrɪst]
Savings Interest is the reward given for depositing money into a savings account. Income tax is usually paid but tax-free accounts with deposit limits do exist.
Savings Interest is the amount of money that a financial institution pays to the saver for depositing money into a savings account. It is usually given as an annual rate but can be calculated on a daily, monthly or a yearly basis.
There are many different types of savings accounts where you can earn Savings Interest. For example, Cash ISAs allow individuals to earn tax-free interest. For 2023/24, there is a maximum of £20,000 that you can save in ISAs. Another common savings account is an easy access savings account, which will have lower interest rates but money can always be withdrawn.
On non tax-free accounts, Savings Interest is liable for Income Tax when it is above the Personal Savings Allowance.
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