How is tax paid on Savings Pots

Summary: I want to put some capital gains money into a Monzo Pot with 4.60% AER (Baring in mind I have already paid capital gains tax on that money). Do I then have to pay Tax on the interest I will gain. Do I need to fill out a self assesment or does Monzo report my savings to HMRC and tax get reduced from my PAYE?

Sorry if this is a really silly question but remember theres only such thing as silly answers so be nice to me. I am new to savings and this is the first time I have ever had the thought of actually saving so I am hoping I keep it up :clown_face:

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Thank you sir!

You might be already, but I’d recommend speaking to a financial advisor.

If you’re being taxed on savings interest then there are definitely some efficiencies you can explore around ISAs, SIPPs and Gift Aid.

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Thank you. I’ve calculated the annual interest and it won’t be exceeding my personal allowance anytime soon but that is sound advice thank you.

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I suspect that there might be quite a few individuals who get unexpected tax code changes in April because of (comparatively) high interest rates in this tax year.

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