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I expect they will tell HMRC too. I'm pretty sure that Chase has a UK banking licence, not sure about Vanguard, but I would expect they would be notifying regardless. I know that other organisations which are not banks report interest to HMRC, such as peer to peer lending platforms.
Regarding the mechanism, I believe that it is your responsibility to tell them, such as via filling in a tax return.
They may get in contact and say, 'this is what we think you have received' (they did this to me one year and their info had errors in it!).
frank9755-
Thanks. Yes, I spoke to HMRC today and they said HMRC should get in contact at the end of the year to send me a bill for tax on savings interest (that they've been notified about). I've never received anything in previous years.
Seems surprising having a system where it's your responsibility to tell them. Could be open to abuse.
chris0
I've got some savings in a Chase account and a Vanguard General Account. The interest is over the personal allowance. What's the mechanics of how the tax gets paid? I think with UK banks they tell HMRC but with these is it reliant on me proactively telling HMRC?