Important changes to savings and interest paying bank accounts.

Receive interest without tax being deducted

We updated our account conditions on 6 April 2016 to explain we now pay your interest gross.

On 6 April 2016 , the Government introduced a tax-free Personal Savings Allowance on the interest you earn on your savings and interest paying bank accounts. This means:

  • The first £1,000 of savings interest that basic rate taxpayers earn and the first £500 for higher rate taxpayers is free from income tax.
  • Most people no longer pay tax on their savings interest.
  • It’s your responsibility to pay any tax you may owe directly to HM Revenue & Customs, according to your individual circumstances.

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Flexible ISAs

From 6 April 2016, some of our cash ISAs now benefit from a flexible feature.

  • Following the introduction of flexible ISAs, you’re now able to withdraw and replace funds from some of our cash ISAs without affecting your yearly ISA allowance, providing you replace funds in the same tax year you withdraw them.
  • Your ability to withdraw and replace funds may be limited by the particular account conditions of your ISA, for example, if you have a Help to Buy: ISA.
  • The flexible allowance from the withdrawal of prior year funds cannot be transferred between ISA providers. If you do not replace withdrawals before a transfer, the allowance will be lost.
  • The ISA limit for the year still applies so you can only hold a maximum of £15,240 across your cash ISA, stocks and shares ISA and innovative finance ISA.

Innovative Finance ISAs

The Government introduced a new ISA called innovative finance ISA on 6 April 2016.

  • An innovative finance ISA allows interest and gains from peer to peer loans to qualify for tax advantages.
  • The Halifax doesn’t offer this product however you are able to transfer in from and out to an innovative finance ISA.

Looking for a new account?

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