Tax on savings interest calculator

This is an example plan. Replace it with your own savings.

Your tax band

£500 of interest tax-free, then 40%, or 42% from April 2027.

Other savings and income (optional)£300 a year of other interest ›

Interest from other savings, per yearUses up your allowance first.

Interest already received since 6 April

Paid into ISAs since 6 AprilInclude any ISA below that you opened before today.

What you'll spend

Optional

Taken from these savings each year, £After any pension or salary. Taken out monthly.

Your savings

Rates as at 24 September 2026

£8,000 · Easy-access account

You'd have by 24 Sept 2029£8,665

Interest£999

Tax£334

Rate after tax2.70%

£10,000 · Fixed-rate account, 1 year

Available 24 September 2027

You get back£10,280

Interest£440

Tax£160

Rate after tax2.80%

Then it moves to easy-access account at 4.50%, and earns £632 more after tax by 24 Sept 2029.

£10,000 · Fixed-rate account, 2 years

Opened 24 March 2026, available 24 March 2028

You get back£10,642

Interest£941

Tax£299

Rate after tax3.16%

Then it moves to easy-access account at 4.50%, and earns £496 more after tax by 24 Sept 2029.

£10,000 · Fixed-rate cash ISA, 3 years

Available 24 September 2029

You get back£11,249

Interest£1,249

TaxNone

Rate after tax4.00%

£5,000 · Premium Bonds

You'd have by 24 Sept 2029£5,653

Prizes, on average£653

TaxNone

Rate after tax4.35%

Prizes are random. A typical year wins £150, and 8 years in 10 win £25 to £350. These are estimates.

Add money

What you get back

By 24 September 2029

£47,616

£43,000 put in, plus £4,616 after £1,372 tax. About 3.32% a year.

After spending £33,000, you'd have £14,616 left.

Assumes you stay a higher rate taxpayer. Not financial advice.

Your money over time

Total you have
You can take out
Not yet paid back

Any time£15,446Easy-access account, Premium Bonds, Easy-access account, from 24 Sept 2027, Easy-access account, from 24 Mar 2028£13,000 + £2,446 after tax by 24 Sept 2029
24 September 2027£10,280Fixed-rate account, 1 year£10,000 + £280 interest after tax£12,716 you can take out then
24 March 2028£10,642Fixed-rate account, 2 years£10,000 + £642 interest after tax£18,220 you can take out then
24 September 2029£11,249Fixed-rate cash ISA, 3 years£10,000 + £1,249 interest after tax£14,616 you can take out then

Tax, year by year

Total £1,372

Tax-free
Covered by your allowance
Taxed

2026–27 40% rate

£167 tax

Your other savings use £300 of your £500 allowance, so £418 is taxed at 40%.

2027–28 42% rate

£538 tax

Your other savings use £300 of your £500 allowance, so £1,280 is taxed at 42%.

2028–29 42% rate, assumed

£467 tax

Your other savings use £300 of your £500 allowance, so £1,112 is taxed at 42%.

2029–30 42% rate, assumed

£200 tax

Your other savings use £300 of your £500 allowance, so £477 is taxed at 42%.

Show the workings ›

By tax year	2026–27	2027–28	2028–29	2029–30	Total
Interest from these savings	£727.18	£2,097.31	£1,945.50	£1,218.74	£5,988.73
Tax-free (ISAs, Premium Bonds)	£108.75	£617.50	£633.50	£541.39	£1,901.14
Taxable	£618.43	£1,479.81	£1,312.00	£677.35	£4,087.59
Covered by the allowance	£200.00	£200.00	£200.00	£200.00	£800.00
Taxed	£418.43	£1,279.81	£1,112.00	£477.35	£3,287.59
Tax on these savings	£167.37	£537.52	£467.04	£200.49	£1,372.42
After tax	£559.81	£1,559.79	£1,478.46	£1,018.25	£4,616.31

By holding	Put in	Earned	Tax	After tax	Rate
Easy-access account	£8,000	£998.91	£333.95	£664.96	2.70%
Fixed-rate account, 1 year	£10,000	£440.00	£159.82	£280.18	2.80%
Fixed-rate account, 2 years	£10,000	£941.16	£299.27	£641.89	3.16%
Fixed-rate cash ISA, 3 years	£10,000	£1,248.64	£0.00	£1,248.64	4.00%
Premium Bonds	£5,000	£652.50	£0.00	£652.50	4.35%
Easy-access account, from 24 Sept 2027		£960.74	£328.80	£631.94	2.98%
Easy-access account, from 24 Mar 2028		£746.78	£250.57	£496.20	2.99%
Total	£43,000	£5,988.73	£1,372.42	£4,616.31	3.32%

Rates are yearly, compounded over the exact time held like an AER or a gilt yield. Premium Bonds show the average prize rate. The total rate is the average of the holdings' rates, weighted by amount and time held. Tax on other savings isn't included.

What the calculator assumes ›

Your income tax band stays the same for the whole plan. If you moved to a higher band, the taxed options would leave you with less.
Savings interest is taxed at 20%, 40% or 45% in 2026–27, and 22%, 42% or 47% in 2027–28. Later years are assumed to keep the 2027–28 rates.
Rates are AERs. Easy-access interest is added to the balance each month and fixed-rate interest each year, so interest earns interest. Premium Bond prizes are counted as paid out.
When a fixed account or gilt ends, the money moves as you choose on its card: into easy access (by default), kept as cash, or fixed again. The rate after it ends is your assumption, starting at today's rate.
Fixed accounts you already hold earn interest from the date they were opened. Interest credited before this tax year counts in what you get back, but its tax isn't part of this plan.
A twelfth of your yearly spending comes out each month, and it doesn't rise with prices. Interest and tax assume the money stays put, so they're a little high if you spend from accounts that pay interest.
Gilts are held until they pay back £100. The amount is the cash paid, including the interest built up since the last coupon, and the first coupon is counted after paying that back, as the Accrued Income Scheme does for holdings over £5,000. Dealing costs are left out.
Premium Bond figures use the prize fund rate. A typical year is an estimate from a simulation of NS&I's September 2026 prize table.
From 6 April 2027, under-65s can pay only £12,000 a year into cash ISAs.
The FSCS protects £120,000 per person at each bank. The calculator doesn't know which bank each account is with.
Default rates are as at 24 September 2026. Check the current rate before opening any account. The calculator compares options and doesn't recommend any product or provider.