A quick guide to saving

Saving in a recession

Savings and investments can be a good way to provide for your financial future.

We have a choice of solutions designed to help make savings and investing simple. We’ve prepared this brief introduction to help you decide which are right for you.

Savings or investments?

With our savings accounts, any growth will be related to the interest rate you earn on your account.

Investing makes your money work harder and the potential rewards are higher. But there is a risk that you may lose some or even all of your money.


Instant–access accounts mean you can get at your savings whenever you want to, while fixed–term accounts may require you to lock your money away for a period of time. Depending on the type of accounts, some may offer tiered rates of interest – so the more you save, the more you'll earn.

If you want to save a regular amount each month, there are also accounts to help you with this.

Tax on savings

Savings interest has tax deducted at 20% before you receive it. If you’re a higher–rate or additional–rate taxpayer, you’ll have further tax to pay. However, some low–income savers may be able to claim all or part of this tax back.

If you’re a UK resident and you don’t pay income tax, you can receive your savings interest without tax deducted by completing an R85 form. You can get this form and a helpsheet from any Barclays branch or the HM Revenue & Customs (HMRC) website. Just complete and return it to us and we’ll arrange to pay your interest without tax being deducted.

If your total income is below a certain level, you may be eligible to take advantage of the 10% savings starting income tax rate, and claim back a proportion of the tax you’ve already paid.

For example, for the 2013/2014 tax year, you can take advantage of the rate if you are :

  • Aged under 65 and earning less then £12,230
  • Aged over 65and earning less then £13,290
  • Aged over 75 and earning less than £13,450

You’ll need an R40 form, available from the HMRC website. This should be completed and returned to your tax office, details of which can be found on the same site.


You don't have to be rich to invest. There are a huge number of options. But the earlier you start, the more opportunity the money has to grow.

Whether you want to save a small amount regularly or have a lump sum to invest, please contact telephone banking or visit a branch, where we’ll be able to help you find the right options for you.


Find out more

Guide to ISAs

Child Trust Fund guide

Why invest?

1 year savings bond

One Year Savings Bond

  • Fixed interest rate
  • Open from £500
  • Guaranteed rate of return