Students and Tax on Interest

If you are a student then it might not happen that often, but still there may be times where you have some savings and money.

Perhaps if you do a summer job then you will end up saving money and have some hard earnt money that you want to have put away for a rainy day.

However, what you might not know as a student is that you don't have to pay tax on the interest from your savings (assuming you don't earn above the threshold which of course most students don't).

Therefore what you need to do to ensure that you get all the interest and don't pay tax on it is to go and talk to your bank and say that you are a student and should not be paying interest.

They will often ask you to fill in a form or get something from UCAS or your university perhaps (if relevant) to prove that you are a student.

As a result of this you should find that you don't have any tax deductions when interest is credited to your account - if it's still there then talk to your bank again as it has not been taken off.

And so as a result you can save more money as you can avoid tax.

For a range of other hints and tips for students with regard saving and making the most of their money, read the relevant section of our money management hints and tips here at mysalary!

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