Beware the savings tax trap: 2 million savers face paying tax on their interest

Millions of people will pay tax on their cash savings in 2024/25, up from about 650,000 three years ago. We outline clever ways to shelter your cash from the taxman

Rope noose around pink piggy bank
(Image credit: Getty images)

More than two million savers face paying tax on their interest this tax year, according to data from HMRC obtained through a Freedom of Information (FOI) request.

The taxman estimates 2.07 million savers will be hit with a tax bill, up from 1.9 million in 2023/24.

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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.