Interest from a high-interest savings account is usually taxable, but you may not owe tax if it falls within your Personal Savings Allowance: £1,000 for basic-rate taxpayers or £500 for higher-rate taxpayers, while additional-rate taxpayers have no allowance. Some people with lower incomes may also qualify for a starting rate for savings. Interest earned in an ISA is tax-free, subject to the annual ISA allowance. Your bank may report interest to HMRC, which can adjust your tax code or ask you to declare it through Self Assessment; check the latest guidance on GOV.UK if your circumstances are complex.