MoneySavingsThe number of non-ISA savings accounts forecast to earn over £1,000 in interest has increased by 1,047%16:41, 13 Aug 2026Updated 16:41, 13 Aug 2026Over five million UK savings accounts are now at risk of being hit with a tax bill as savers are being urged to review their finances.Basic-rate taxpayers can earn up to £1,000 in savings interest each tax year before they start to pay tax on the interest earned.New analysis by Yorkshire Building Society reveals the number of non-ISA savings accounts forecast to earn over £1,000 in interest has increased by 1,047% in the last eight years.There were 462,000 accounts that would have earned more than £1,000 in interest and be potentially liable for tax in January 2018. This figure has now risen to 5.3 million.Inflation, a higher interest rate environment and frozen tax-thresholds have contributed to millions more being liable to pay tax on their savings interest.Higher rate taxpayers can earn up to £500 in savings interest before they have to pay tax, while additional rate taxpayers do not receive any allowance. Any interest earned above these limits is taxed at your usual income tax rate.The personal savings allowance was introduced in April 2016 and the majority of easy access accounts paid 1% or less - now the majority pay 3% or more.This means that in 2016 basic-rate-tax payers would have been able to put away £100,000 in a typical savings account. In 2026, savers would only be able to save around £25,000 at rates of 4% without breaching their allowance.If you are at risk of having to pay tax on your savings interest, you could choose to put your money away into an ISA account, where any interest earned is free from tax. You can put up to £20,000 a year into one ISA account or across different accounts.Tina Hughes, Director of Savings at Yorkshire Building Society, said: “People doing the responsible thing — saving for a home, for emergencies or for the future — are now being punished by outdated rules. The Personal Savings Allowance urgently needs reform so it keeps pace with reality and supports savers, rather than catching them out.”Rachel Springall, Finance Expert at Moneyfacts, said: “Savers are earning higher rates of interest, but they are also becoming ever more exposed to tax due to fiscal drag.“The fact that there are millions of accounts becoming liable to tax over the past five years alone just shows how the Personal Savings Allowance has not moved on with the times and is in dire need of review to protect savers.“Choose Daily Mirror as a 'Preferred Source' on Google News for quick access to the news you value.‌TaxInterest ratesSavings