A credit union is a financial co-operative. They were traditionally owned and run by members who have a common interest, such as where they live or work; but these days, some have broader membership rules.

Individual savings accounts (also known as ISAs) are a form of savings that have tax advantages. Income tax and capital gains tax can be saved if you invest in ISAs, but they are still counted in your estate for inheritance tax purposes. 

The personal savings allowance is a nil-rate band of tax which applies to taxable savings income. It is £1,000 for most basic-rate taxpayers. The savings income that falls within the personal savings allowance is taxed at 0%.

The starting rate for savings is a 0% rate of tax which can apply for up to £5,000 of savings income. It only applies if your non-savings and non-dividend income is below a certain threshold.

If you get paid interest on your savings, you need to understand whether you need to pay tax on it. On this page, we explain how interest is taxed and how that tax is then collected by HMRC.

If you have joint savings (or shares), make sure you understand how the income is split between you for tax purposes.