Confused with Interest on Citibank Flexible Saver account

UNISTUDENT

I am a student - not that probably makes any difference i.e Tax

I have only made a few deposits into my savings account up until now which display correctly. Although on the 31/12/09 I have two new activities in my account:

One saying: "Tax Deducted" with a SUM of money going out my account
One Saying "Interest Taxable" with a SUM of Money going IN to my account.

What do both of these mean?

Sorry the question probably sounds really dumb but I am new to this and don't know where else to ask. Thanks for help

rb10

They paid you interest at the end of December. This was the "Interest taxable" figure. But, as they clearly believe you to be a taxpayer, they have then taken 20% of this ("tax deducted") from your account.

If your total annual income does not exceed £6475, then you should not be paying tax. (When working out your annual income, don't include student loans, grants and bursaries - these are all tax free). If this is the case, then you will need to contact Citibank with your National Insurance number and ask to register for gross interest.

Most organisations require you to fill out a form for this. (Called the R85 - form is here, and helpsheet here).

The tax that you have already paid should be put back into your account after they have received confirmation from you that you do not pay tax.

UNISTUDENT

Excellent thanks for help