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What is the Personal Savings Allowance (PSA)?

What is the Personal Savings Allowance (PSA)?

Your PSA is separate from your ISA Allowance.  The amount of allowance will depend on the type of Tax Payer you are. The interest you earn from an ISA will not impact your Personal Savings Allowance. 

  • Basic Rate Tax Payers at 20% can earn £1000 in savings interest per year with no tax.
  • Higher Rate Tax Payers at 40% can earn £500 in savings interest per year with no tax.
  • Additional - Rate Tax Payers at 45% do not get any allowance.

How many ISAs can I pay into?

You can now open and fund multiple ISAs of the same type, in the same tax year, with different providers. If you have opened a cash ISA with another provider/s you can still open a cash ISA with us.  You are responsible for ensuring you do not exceed the current yearly subscription limit of £20,000 across all ISA. The current tax year runs from 6th April to 5th April. 

You can also combine multiple ISAs into one new ISA by completing an ISA transfer.