Help and guides for savers
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FAQs for Savers
How is interest paid on Personal Accounts
Interest on Personal Accounts is paid at the gross rate with no tax deducted.
How is interest paid on Business Accounts
Interest will be paid at the gross rate. The receipt of interest gross by a company will not prevent that interest from being liable to corporation tax. For information regarding tax or how to make a self-assessment tax return, please contact HMRC.
How does the Personal Savings Allowance affect me?
On 6th April 2016, HM Revenue & Customs (HMRC) made changes to the way savers earn interest and pay tax. They introduced a new Personal Savings Allowance. Here you can find answers to the questions you might have about the Personal Savings Allowance.
The introduction of the new Personal Savings Allowance means that from 6th April 2016 most people no longer pay tax on their savings income. Basic rate tax payers have a £1,000 tax-free allowance while higher rate tax payers are able to earn £500 tax free.
From this date, The Cambridge stopped deducting tax from the interest you pay on your savings. If your total taxable income is less than the current £17,000 allowance you will pay no tax at all on your savings income.
If you have previously completed a form to receive interest tax-free (an R85/R105) you will no longer need to do so from April 2016. Interest that relates to periods before April 2016 but paid afterwards will not have tax deducted.
What should I do if I earn savings income over my Personal Saving Allowance?
If you have any savings income over your Personal Savings Allowance you will have to pay some tax on this. HMRC will normally collect the tax by changing your tax code. If you already fill in a self-assessment tax return you should carry on doing this and include any income from savings on your return.
Does the Personal Savings Allowance affect my ISA?
The Personal Savings Allowance does not affect ISAs. Interest from Individual Savings Accounts (ISAs) is paid tax-free so does not count towards your Personal Savings Allowance.
What happens when savings interest rates increase?
When the interest rate on your savings account increases we will places notices in our branches, on our website and in two newspapers within three working days of the change, or we'll let you know within 30 days of the change by email, letter or another form of personal notice.
What happens when savings interest rates decrease?
The interest rate for your savings account might decrease for a number of reasons, you might have a fixed term product that is coming to an end, your rate may be variable and therefore can change at any time or it may be linked to changes in the Bank of England Base Rate.
When the interest rate on your savings account decreases we will tell you about the change, in writing, within 14 days of the change taking place.
Take a look at our Terms and Conditions for Savers for a more detailed explanation.
If you'd like to speak to one of the team about your savings accounts live chat with us, or call on 0345 601 4021.
Does the Personal Savings Allowance affect children's savings accounts?
Children under the age of 18 get tax-free income. If money given by a parent produces interest of more than £100 a year, the interest will be treated as the income of the parent and count towards the parent's Personal Savings Allowance. If the interest is above the parent's Personal Savings Allowance they will have to pay tax on the interest.
This rule does not apply to money given by others, including grandparents. For more information take a look at www.hmrc.gov.uk/childincome or phone the HMRC helpline on 0300 200 3312
What is the interest on my Savings Account?
You can view the interest on your savings account at any time online once you've registered for our online services.
Alternatively take a look at this pdf to find out the interest rate for your variable savings account where the product is no longer available.
If you're looking for the interest rate for a savings account that is currently available take a look at our savings products here.
Base Rate change: I’ve got a savings account with a fixed interest rate, will this change?
If you have an account with a fixed interest rate, this will not change for the duration of your fixed rate term.
Base Rate change: I’ve got a savings account with a variable interest rate, will this change?
If you have a variable rate savings account, it’s likely that the interest rate will change. We are currently reviewing the interest rates on all of our saving accounts.
If your savings account has a base rate tracker feature your interest rate will increase in line with the Bank of England base rate.