Tax-Free Savings Accounts
When you save money in a savings account, you will usually be paid interest by the bank or building society on the balance of your savings. This will usually be a percentage of the amount you have saved, for example, three percent. However, this interest will be subject to income tax and so you will not receive the full amount. Any investment returns you make on stock market-linked savings are also subject to income tax.
It is possible to invest your money in tax-free savings accounts. These accounts ensure that any investment returns your money earns will be paid to you in full: no tax will be deducted. The main tax-free savings accounts are:
- Individual Savings Accounts / ISAs
- Savings Certificates (NS&I)
- Personal Pension Plans
- Premium Bonds (NS&I)
There are also tax-free saving options available for children.
For further details see:
