what do I do?

FBaby

Sorry for asking a question that must have been asked many times here. It's my first time on this part of the forum! For the first time in my life I am able to save some money every month. Many years ago I opened an instant saving account with my bank and I transfer the savings into it each month. I'm now just over £4k and it has just hit me that I might be liable to be taxed on it unless I do something about it. Is this correct?

opinions4u

FBaby wrote: »

For the first time in my life I am able to save some money every month. Many years ago I opened an instant saving account with my bank and I transfer the savings into it each month.

What rate of interest are getting? You might be better off opening a new account with a higher rate and sticking your savings in there. Make yourself familiar with bonus rates and what happens when a bonus expires.

I'm now just over £4k and it has just hit me that I might be liable to be taxed on it unless I do something about it. Is this correct?

Unless you have signed a declaration (form R85) saying you don't pay tax basic rate tax will be deducted. If you pay more than 20% tax you need to declare this to HMRC.

The easiest way to pay no tax on your savings is to put the first £5,640 per tax year in to a cash ISA.

Take a look at the links at the top of the screen.