Skip to content
£ moneyguide
Glossary · Tax

Starting rate for savings

Where a link is marked *, it is a partner link — we receive commission at no extra cost to you. Links without a * earn us nothing. How we make money.

Last reviewed:

Definition: Up to £5,000 of savings interest is taxed at 0% — but the band is reduced by £1 for every £1 of non-savings income above the £12,570 Personal Allowance.

Disappears entirely once non-savings income reaches £17,570. Most useful for people with low earnings, low pensions or in a gap year. Sits alongside the Personal Savings Allowance.

Primary source: gov.uk/apply-tax-free-interest-on-savings

More Tax terms

← All glossary terms