Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Is Your Savings Interest Really Tax-Free? | NHS Doctors Beware

27 Sept 2025 · 2 min

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1:51

YouTube clip by Ndubuisi 'Andy' Egwim explaining that (contrary to a common claim) savings interest can be taxable and that HMRC may adjust tax codes to collect tax on savings interest. The video also gives a worked example for SIPPs: a basic-rate (20%) taxpayer contributing £48,000 effectively reaches £60,000 after tax-relief is added. Ends with a call-to-action promoting an Investing Readiness Scorecard.

Questions this video answers

That interest generated in a savings account is never taxable.

Contribute £48,000 — with 20% tax relief added this reaches £60,000.

Chapters

Which of the following statements about interest from your savings account is false? A. Your bank or building society automatically reports the interest you earn to C. Said HMRS may automatically increase your tax by changing your tax code to collect the on savings interest. That bit is correct. And then interest generated in a savings account is never taxable. That is wrong. So so that makes it the correct answer. Okay, let's look at SIP Self Invested Personal Pension let's assume that you don't have an NHS pension. What is the maximum amount you can put in your self invested personal pension in a taxi in order to get tax relief if you are a basic rate taxpayer. So if you put money in your sip, they're going to give you tax relief based on your marginal rate. So if you're a 20 taxpayer you are going to get 20 tax relief. So that means that if I want to get to 60k I put in 48, 000. Okay? So if I put in 48000 by the time they add in the tax relief I can get to 60000 pounds. Okay? So that's how to work these things out.
If you like me to drop more of these clips, just let me in Invest and share this video as well with friends who may need to hear this. And if you are ready to stop winging it and guessing, Guesswork is not good for investing. If you want to learn how to become a confident investor to learn how to invest properly, check out our Investing Readiness Scorecard with the links in the description. It will help you determine whether you're really ready to start investing and what you need to do before you even start thinking about investing to reduce the chances of you losing money. And until then, see you soon. Bye bye.