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

28th June 2025

PRESS RELEASE

FOR IMMEDIATE RELEASE
27th Jun 2025



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

https://www.moneyfactsgroup.co.uk/