4% interest available

[Frnc]

If you're a basic rate Tax payer, you can earn something like £1000 interest on savings before The Revenue takes a bite...... This is roughly +30k. Most of us aren't likely to have this problem.

Any interest over £1,000 goes against your tax, correct. In my case even if I got that much it would then get added to my other income, of which £7,500 is deducted on the Rent a Room scheme.
So I'd get taxed on my pension, rent over £7,500, and interest over £1,000.

I see you don't get taxed on cash ISAs. So when I get my state pension might be worth switching some of my lump sum 'savings' to those, depending on interest rates. But interest rates will probably drop by then.

Not wishing to pry into your affairs, but any interest over £1000 would be added to your other gross income. Then your 12000* or so personal allowance is deducted. You only pay tax on the extra bit above that £13,000 or so.

* I can't be bothered looking it up

Yes. I add my pension, rent income (of which £7500 is duducted by Rent a Room scheme), and interest, which has so far been way under £1000. Total is well below the £12K or so limit. When I get my state pension, if I still have two lodgers, I'll go over the £12K.

[Frnc]

Coventry offering 4.1%, no minimum, fixed until 30 April 2024.
Paying in
Limited time only