I have two questions.
1. I am 60 female and not working. I have £10.0000 in what was a high interest account with the interest paid monthly at lloyds tsb
Am I due to pay interest on this or are pensioners tax free

2. I am looking to move it to a higher interest account somewhere which pays the interest monthly and is easy access. Which would be best for me?
thank you for looking

Income is not tax free just because you are a pensioner. It depends on your income.

If you are not working and have only the state pension as an income source, you are likely not to need to pay tax, but if you have income from savings, a private pension, share dividends or other sources, you may need to pay tax. The bank will deduct 20% tax automatically unless you tell complete a form declaring that you annual income is below the tax threshold (below).

In 2008-09 a single person could earn up to £6,035. This year (2009-10) the allowance is £6,475. If you are married the allowance is different.

When you reach 65, you may get an age-related personal allowance. This allowance increases when you reach 75.

The government has recently allowed you to top up missed NI going further back than the current last 6 years.

Hi,
Try to think of a service bussiness that you do, like selling baked cupcakes and earn money.
Thank You Feel Free to Ask Questions