Help, have I just made a mistake putting money in to my instant access savings? 31 December 2009 at 9:55AM edited 30 November -1 at 12:00AM in How much have you saved? 3 replies 1.3K views

*Vikki*

Will I get taxed on this money? Reason I put this in to this account is because its savings for bills. Rather than to put it in to my ISA. But I don't want to have to pay tax on it? Will I have to?

cake21

Unless you've completed the form to declare that your *total* income including wages / JSA etc is below your tax allowance (the number of which escapes me, but they'll know over on the Saving & Investments forum ), you will get taxed on the interest received. This happens automatically, i.e. you will receive the interest net of basic rate tax. Only way to avoid it is a tax-free wrapper e.g. pension / ISA as far as I know.

Hope that helps a bit

cake21

On the bright side if your instant access savings account is anything like mine there's pretty much no interest coming in anyway

*Vikki*

okay thank you, i'll just keep it in there.