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Savings warning for higher rate taxpayers

27/06/2025

Warning for higher rate taxpayers with more than £14,500 saved

Warning for higher rate taxpayers with more than £14,500 saved

Adam French, Consumer Expert at Moneyfactscompare.co.uk, said:

“The latest statistics from HMRC show how important it is for savers to be aware of their tax liability. Especially many of those who have fallen into paying the higher-rate tax of 40%, who’s Personal Savings Allowance (PSA) has been halved from £1,000 to £500 as a result.

“With the Moneyfacts Average Savings Rate currently at 3.53% AER, higher rate taxpayers with more than around £14,500 saved could expect to earn more than £500 in interest this tax year and could therefore find themselves footing an unexpected tax bill.

“However, plenty of savers can avoid this tax bill by making use their yearly ISA allowances, with cash ISAs keeping the savings of millions of people free from tax.  They shouldn’t expect a raw deal either with some of the top paying easy access cash ISA’s paying as much as 5% AER interest once introductory bonuses are taken into account, for example.”

About the Moneyfacts Average Savings Rate and methodology.

Adam French, Consumer Expert at Moneyfactscompare.co.uk, said:

“The latest statistics from HMRC show how important it is for savers to be aware of their tax liability. Especially many of those who have fallen into paying the higher-rate tax of 40%, who’s Personal Savings Allowance (PSA) has been halved from £1,000 to £500 as a result.

“With the Moneyfacts Average Savings Rate currently at 3.53% AER, higher rate taxpayers with more than around £14,500 saved could expect to earn more than £500 in interest this tax year and could therefore find themselves footing an unexpected tax bill.

“However, plenty of savers can avoid this tax bill by making use their yearly ISA allowances, with cash ISAs keeping the savings of millions of people free from tax.  They shouldn’t expect a raw deal either with some of the top paying easy access cash ISA’s paying as much as 5% AER interest once introductory bonuses are taken into account, for example.”

About the Moneyfacts Average Savings Rate and methodology.

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Press & PR Executive