The investment savings account is the option that probably fits most ordinary savers. It is an interesting and popular savings form where you can save in shares, funds and the like. The difference between Bank and a regular share and fund account is that you do not pay taxes on the profits of your Bank in the same way as in the share and fund account.
There, you pay 30 percent tax on the profits every time you sell a holding, but on their Bank, you pay a standard tax which is calculated based on your deposits and the value of the account during the year. You have to pay this standard tax whether your investments have gone up or down in value and you cannot offset the profits against losses in the same way.
The standard tax on Bank is calculated on the basis of the national mortgage rate plus one percent
If you need to calculate tax for the declaration, the government loan rate is used from 30 November the year before and in 2018 it is at 0.51 percent. You should therefore count on 1.51 percent when you calculate the standard tax for your Bank. You will then pay 30 percent of this amount in tax.
This means (despite some increases in taxes) that a Bank is a cheap way to save money, as long as the interest rate is low. The savings form fits really well into investments in equities and funds, especially in the long term. Many people save pension in a Bank, for example with shares and equity funds.
It should be kept in mind that a Bank is best suited for investment forms with a slightly higher return and therefore it is not as good to have fixed income funds or similar there. This is because the return is a little too low and then the tax eats up the profits fairly quickly.
One advantage of a Bank is that you do not have to worry about declaring your sales and profits for individual investments. This is done automatically through the standard tax. Therefore, you can freely buy and sell as you wish without worrying about all the paperwork as a result. This makes the savings form good for those who want a simple and easy-to-manage savings form.
Tax tips and how to calculate
I recently saw an article in Placera (Avanza) that went through tax tips for Bank, which I thought was good and contained a lot of information and good examples. There they wrote about how the tax works and gave some other good tips on what to think about current tax and savings in Bank.
Instead of writing down the same things myself, I just thought of linking to the article so you can read there. It says, for example, about how Bank is taxed, how to calculate the tax and slightly different examples of this. There is information on liquid funds, how it works with an offset in an investment savings account and on the transfer of securities between accounts or from a mutual fund account to an Bank.
If you are using an Bank and want some more information on how it works or if you are thinking about switching to an Bank and want to read on before, then you can check out this article on tax tips at Placera.
We have of course also written a lot about how an investment savings account works if you want to read general information, tips, advantages and disadvantages etc. If you are interested in trading in funds you can also read the Fund School (link to part 1).