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A quick guide to saving and investing

How to decide what’s right for you

Savings and investments can be a good way to provide for your financial future. Here’s a brief guide to help you find an option to suit you1.

 

Coronavirus and your savings

We’re here to support you if you find yourself in financial difficulties as a result of coronavirus so if you need access to your money from your fixed-term deposits, we might be able to help. Read our savings FAQs for details.

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.

Savings

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.

Tax on savings

From 6 April 2016, you’ll receive your savings interest without tax deducted.

If you’re a UK taxpayer, you will have a tax-free Personal Savings Allowance (PSA) of £1,000 (or £500 for higher rate taxpayers and £0 for additional-rate taxpayers) on the interest that you earn on your savings.

Any interest you earn above your PSA will be subject to tax. It will be your responsibility to ensure that any tax due on interest payments received is paid to HM Revenue & Customs (HMRC).

Please note your PSA applies to the total interest you earn from all banks/building societies, not just interest from us, with the exception of ISAs, which continue to be free from UK tax for eligible customers.

Please also note that tax liability on interest applies in the tax year it is paid, which may be different to the tax year(s) in which interest has accrued.

If you’ve paid tax on your savings in a previous tax year and you think you shouldn’t have, you’ll need to complete an R40 claim form. Visit HM Revenue & Customs for more information.

Thinking about investing?

Whether you’re confident making your own decisions or you’d like some help, we have a range of investment options to choose from.

Explore investments

Remember, investments can fall as well as rise in value and you could get back less than you invest.

Want to know more?

Read our guide to ISAs, compare ISA accounts and compare savings accounts, learn about Child Trust Funds and discover Smart Investor.

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Master your Moneyverse

…and make money work for you

We’ve all got our own personal relationship with money – the way we spend it, save it, (try to) look after it and use it to help reach our goals and shape our dreams. This is your Moneyverse. It’s as unique as you are and we can help you become its master.