over 60 and don't work how much tax do I have to pay on a savings account?

pw23

I'm a little confused on how much tax free interest an individual that is retired, can earn in a savings account,

The HMRC website states

Starting rate for savings

You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings.

https://www.gov.uk/apply-tax-free-interest-on-savings

I will probably earn £2000 per year in interest, but I'm debating whether to put 20 K in the cash ISA to prevent me being charged tax on the remaining 55K, as in the easy access savings account, but the rates are a little lower 

In the summer, I do plan to put the 75K savings into a one-three year fixed savings account

I do recall reading anyone can earn up to £1000 tax-free interest, and if that's the case, surely I would be liable to declare annual interest earned on the several year fixed savings account?

Dazed_and_C0nfused

Do you expect to have any pension income or earnings at all in the current tax year?

pw23

No none, im a housewife 

Dazed_and_C0nfused

pw23 said:

No none, im a housewife 

Then you can earn either £17,310 or £18,570 in taxable interest before any tax would be payable on it.

£17,310 is relevant if you have applied for Marriage Allowance and have a reduced Personal Allowance.

£18,570 is if you haven't applied for Marriage Allowance.

£11,310 or £12,570 Personal Allowance
Plus
£5,000 savings starter rate band (0% rate)
Plus 
£1,000 savings nil rate band (also 0%)

macman

So you are retired but below state pension age, and no private pension? If you have no income at all then the interest on your savings is not going to take you above the 23/24 personal allowance of £12,570.

pw23

Thank you.

Albermarle

Tax-free savings: check if you're eligible - Money Saving Expert

TBC15

You should consider putting £2880 into a SIPP every year and drawing it down. HMRC will give you an additional £720 pa free.