Savings Interest by Amount
How much interest savings from £1,000 to £200,000 earn, and whether it is taxed. Pick an amount for the full table.
| Savings | Interest a year at 3% | At 4% | At 5% |
|---|---|---|---|
| £1,000 | £30 | £40 | £50 |
| £2,000 | £60 | £80 | £100 |
| £5,000 | £150 | £200 | £250 |
| £10,000 | £300 | £400 | £500 |
| £15,000 | £450 | £600 | £750 |
| £20,000 | £600 | £800 | £1,000 |
| £25,000 | £750 | £1,000 | £1,250 |
| £30,000 | £900 | £1,200 | £1,500 |
| £40,000 | £1,200 | £1,600 | £2,000 |
| £50,000 | £1,500 | £2,000 | £2,500 |
| £75,000 | £2,250 | £3,000 | £3,750 |
| £100,000 | £3,000 | £4,000 | £5,000 |
| £150,000 | £4,500 | £6,000 | £7,500 |
| £200,000 | £6,000 | £8,000 | £10,000 |
How savings interest is taxed
Most people can earn some interest tax-free through the Personal Savings Allowance, which is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers have none. Some people with lower incomes also get a starting rate for savings of up to £5,000. Interest in an ISA never counts.
Making savings work harder
Compare the rate you are paid with inflation and with other accounts. Fixed-rate bonds often pay more than easy-access accounts, but you cannot take the money out early. Keep an emergency fund somewhere you can reach quickly.
Interest above your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate) is taxed. Check with the savings interest tax calculator.
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.