Do I pay tax on interest earned in a Biscuit current account?

Interest earned on a current account counts as taxable income in the UK, but most people won't pay tax on it thanks to the Personal Savings Allowance (PSA) – currently £1,000 a year for basic rate taxpayers and £500 for higher rate taxpayers.

At current Biscuit rates, you'd need a very large balance to exceed the PSA from your current account alone, and interest from linked savings products like the Regular Saver counts towards the same allowance.

For the full rules – including Scottish tax bands, other allowances, and when you need to tell HMRC – see our guide: Your Personal Savings Allowance Explained.