The number of individuals who have more than a £5,000 tax liability on savings income has almost tripled from 52,700 in the 2022/23 financial year to 137,000 in the 2025/26 financial year, Paragon Bank has found.

The data, retrieved by the bank via a freedom of information request, revealed that this figure is predicted to rise to 144,000 in the current financial year.

According to CACI data, there are 1.1 million instant access adult non-ISA savings accounts holding balances of £100,000 or more, with a combined value of over £260.7bn.

The bank added that these balances are "likely to be generating hundreds, if not thousands" of pounds in tax, as they sit outside a tax-free wrapper.

Paragon said the data highlights how tax is becoming a growing issue for savers with larger balances, particularly at a time when people with large balances are looking to make the most of competitive rates.

Head of savings at Paragon Bank, Andrew Wright, stated: "These figures show that tax on savings is no longer an issue affecting just a small number of people. As balances have grown and rates have remained relatively high, far more savers are now finding themselves with substantial tax bills on their interest.

"With CACI data showing 1.1 million non-ISA savings accounts hold more than £100,000, it is clear there are a lot of people with larger balances who may need to think carefully about how their money is structured. Reviewing your savings regularly, checking the rate you are earning, and making use of tax-efficient options where appropriate can help ensure more of your return stays in your pocket."

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