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Interest to be paid gross

Your interest will be paid gross from 6 April 2016.
Up to and including 5 April 2016 banks and building societies automatically take 20% income tax from the interest you receive on non-ISA savings and current accounts, unless you are registered for gross interest.

From 6 April 2016 banks and building societies will start paying interest to you gross. This means we’ll stop taking 20% in income tax from the interest you receive on non-ISA savings and current accounts.

This will happen automatically and you don’t need to contact us or do anything. In the past, to register for ‘gross’ interest you would have needed to follow our gross registration process, but from 6 April there’s no need to do this.

In the 2015 budget, the government announced that from 6 April 2016 a new tax-free Personal Savings Allowance would be introduced.

The new Personal Savings Allowance means most people will no longer need to pay tax on their interest.

  • The first £1,000 of non-ISA interest per tax year will be tax free for basic rate (20%) taxpayers.
  • The first £500 of non-ISA interest per tax year will be tax free for higher rate (40%) taxpayers.
  • Additional rate (45%) tax payers don’t qualify for the Personal Savings Allowance.

How do I know if I need to pay tax?
If you owe tax on the interest that you receive after 6 April 2016 you’ll settle this directly with HM Revenue & Customs (HMRC). 

For further information on the Personal Savings Allowance and whether you need to pay tax on the interest that you receive take a look at the HMRC website and search for ‘Personal Savings Allowance’.

If you need to complete a self-assessment tax return
Your Account Summary provides all of the interest information you need to complete self-assessment for your Santander personal savings and current accounts, in one place. It will automatically be available in Online Banking from May for the previous tax year. To find your Account Summary:

  • Go to the 'Account Services' tab then
  • Go to e-Documents
  • Search ‘Account Summary’ using the advanced search facility within e-Documents 

You can also get paper copies from your local branch or by telephoning 0800 587 3344.

We’ve changed your terms and conditions to reflect this change
Your General Terms and Conditions explain that prior to 6 April 2016 we would usually pay interest on savings and current accounts after income tax is deducted. To receive interest without tax deducted, you would need to register to receive interest gross.

From 6 April 2016, interest on savings and current accounts is paid without deduction of income tax and that there is no longer a requirement for you to register receive gross interest. How the General Terms and Conditions for Savings and Current Account customers will change is set out here.

These revised terms and conditions can be viewed below and are available in branch.

General Terms and Conditions for Savings and Current Account customers (See Condition 20)

General Terms and Conditions for Santander Shareholder Account customers (Condition 11)

Premium Investments Client Agreement. Please refer to the General Terms and Conditions section (See Condition 1.23)

In addition, your Key Facts Document, where you have one, will have been updated to reflect this change. The revised Key Fact Documents are available online or in branch.

What you need to do
If you feel your account is still right for you, you don’t need to do anything and we’ll assume you accept these changes unless we hear from you before the changes come into effect on 6 April 2016.

You can continue to use your account as you do today, but if you feel your account is no longer right for you or you don’t accept these changes, please call us on 0800 9 123 123 (Monday to Saturday 7am to 11pm and Sunday 8am to 10pm) or visit your local branch. You can talk to us about alternative options or you can choose to close your account immediately without loss of interest or any additional charges before these changes come into effect. Premium Investments customers should contact Client Services on 0800 678 3783 if they have any questions regarding Fast Access Accounts or Special Reserve Accounts. 

Frequently asked questions

  • At this time we have decided not to offer the new additional flexible features on ISAs. Whilst we recognise that these features will benefit some savers, we have decided to keep our ISAs working in the same way they do today, and instead to prioritise other products and services which we feel will provide more value to our customers.


    It is important to us that we develop and offer products that meet the needs of our customers and we will continue to review our products regularly.

  • From 6 April 2016, if your total subscription has been above £0 at any point in the tax year either with a flexible or non-flexible ISA provider, you’ll be treated as having subscribed to that ISA in the tax year, even if your total subscription is now £0. This means you can’t subscribe to another ISA of that type in the tax year without first transferring your original ISA, even if there is nothing left in it.

  • It is still your responsibility to keep track of how much of your ISA allowance you have used.
    You can ask your ISA provider(s) to confirm what your remaining ISA allowance is with them at any time. But remember your ISA provider(s) won’t know about any money you have paid into ISAs elsewhere.

  • No, in line with HM Revenue & Customs regulations, you can only pay into one cash ISA each tax year.


    For cash ISAs with Santander you can only subscribe to one product each tax year. e.g. a fixed rate cash ISA or a variable rate cash ISA


    Some ISA providers offer a cash ISA portfolio. The portfolio is the cash ISA and it allows you to open and subscribe to multiple cash ISA products in the same tax year. e.g. a fixed rate cash ISA product and a variable rate cash ISA product.

  • Can't find what you are looking for? More help can be found at on the Savings FAQs page.

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