Find out if your savings interest exceeds the Personal Savings Allowance and calculate any tax due.
Tax Due on Interest
£250
Total Interest
£2,250
PSA
£1,000
Taxable Interest
£1,250
After-Tax Interest
£2,000
Your interest of £2,250 exceeds your £1,000 PSA by £1,250, taxed at 20%.
Since April 2016, most UK savers have benefited from the Personal Savings Allowance (PSA), which allows a certain amount of savings interest to be earned tax-free each year. Basic rate taxpayers can earn up to \u00a31,000 in interest without paying tax, while higher rate taxpayers have a \u00a3500 allowance. Additional rate taxpayers do not receive any PSA.
With savings rates rising in recent years, more people are finding their interest exceeds the PSA. For example, \u00a325,000 in a savings account at 4.5% would earn \u00a31,125 in interest, exceeding the basic rate PSA by \u00a3125. Consider using ISAs to shelter savings from tax, as ISA interest does not count towards your PSA.
Building a savings habit is one of the most effective ways to improve your financial wellbeing. You may also find our Compound Interest Savings Calculator useful for related calculations.
For a broader view of your finances, try the Compound Interest Calculator or the Take-Home Pay Calculator. All of our calculators are free to use and updated for the 2026/27 tax year where applicable.
Compound Interest Savings Calculator
See how your savings grow over time with compound interest and regular monthly c...
Compound Interest Calculator
Calculate compound interest on any amount with flexible compounding frequencies.
Savings Goal Calculator
Work out how much you need to save each month to reach your savings target.
ISA Growth Calculator
Calculate the tax-free growth of your ISA savings over time.
Savings Comparison Calculator
Compare different savings accounts and interest rates side by side to find the b...
Savings vs Investing Calculator
Compare projected returns from savings accounts versus stock market investing ov...
We use cookies to ensure the website works properly and to help us understand how it is used. You can accept all cookies, reject non-essential ones, or manage your preferences. Read our Privacy Policy for full details.