Tax Free Interest

Some National Savings products offer interest or gains which are completely free of tax. These are different from investments in building societies and banks, which pay interest to you as if the basic rate tax had been paid.

On the latter investments, higher rates of tax still have to be paid if you are liable for them and the 'grossed-up' value can affect your age allowance.

Neither of those problems arises with National Savings investments. However, because they are free of tax, the rates of interest paid on these investments are lower than for other National Savings investments.

They are all ideal for retired taxpayers, especially those who pay the higher rate of tax or whose income is just above £10,600.

Read - Savings Certificates

or Index Linked Certificates

Savings Certificates

/retirement/pensions/income/advice/savings-certificates.php... see: Savings Certificates