Savings

Tax-free savings

There are obvious advantages to saving your money in an account where you are not paying tax on the interest earned. Tax on savings interest is normally deducted at 20% for basic rate tax payers. If you are a higher rate taxpayer you'll have to pay the extra tax through your tax return and subsequent tax coding. If you live in the UK, there are a number of ways in which you can save without paying tax on any interest earned. We offer two options:

  • Take out a Cash Individual Savings Account (ISA) .
  • Register to have any interest on a savings account paid gross, i.e. without tax deducted.

ISA products available:

  •  e-ISA is a tax-free, online, Cash ISA. From checking your balance to tracking interest returns, you're in complete control 24 hours a day.
  • 30 Day Notice ISA is an ISA offering an attractive rate of interest on your savings. You can make either a cash lump sum investment or regular cash payments into your 30 Day Notice ISA.
  • Fixed Rate Anniversary ISA is a Cash ISA offering a fixed rate of interest over a fixed term, tax-free.
  • ISA Plus is a Cash ISA offering an attractive rate of interest on your savings. You can make either a cash lump sum investment or regular cash payments into ISA Plus.

About ISAs

An ISA provides a tax efficient means of saving but there are limits on the amount you can invest in each tax year.

Where do I start?

There are two main types of ISA, a Cash ISA and a Stocks and Shares ISA.

You can take out one Cash ISA in any tax year, which runs from 6th April to 5th April the following year. Check our ISAs explained section for more details including investment limits.

Interest paid gross

If your annual income is less than your personal tax allowance, you may be able to register to have any interest on your savings paid gross, i.e. without tax deducted. The best place to check whether you are eligible to have interest paid gross is the HM Revenue & Customs web site.

If you are eligible, complete an R85 form and let your savings provider have it. They will do the rest. If you are one of our customers contact us for a form.


Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, credit cards, loans, mortgages and more.

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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).