By the end of the year, interest in tax-optimizing investments and government reimbursements is generally increasing. If all of these are taken advantage of, we can get back hundreds of thousands from the state or get our money invested tax-free sooner. There are many such schemes, such as NYESZ, voluntary pension funds, and pension schemes made attractive by tax breaks, which can save up to 280,000 USD in taxes.
As regards investments, time deposits are still the most popular among the population, although in recent years more and more people have become acquainted with government securities and various treasury bills. The reason for this may be the simplicity of the construction, since interest is usually fixed and guaranteed in advance, and in the past it was enough to know how to earn the highest interest and if we break the deposit before the agreed deadline, most of the time.
Banks have spelled this out, and for years there have been deposits
It is where the interest rate is linked to some kind of reference rate (such as the central bank base rate or inflation), or is credited in more installments during the term or as we have progressed. during the term, we get higher interest rates. Thanks to the transaction tax and record low interest rates, it is now worth the money to migrate every few months with a savings of $ 5 million. The best way to do this is to choose the best deposit at your own bank or to transfer your money to another bank with a 1-year deposit. Pay attention to the transfer costs, the account management fee and always deduct the 16% interest tax and the 6% eho (health contribution) introduced from the gross interest on deposits. In government securities, the eho is not paid, only the interest tax.
The Long Term Investment Account
Is still not widely known, although it can save a lot. The point of the scheme is that we can be exempt from tax on our deposit (or even government securities or other investments) if we do not touch our savings for 3-5 years. All you have to do is open a special TBSZ account where you want to put your money (and which bank offers it, unfortunately not everywhere).
With a 3-year savings, you only have to pay 10% of the total 16% interest tax, but if you leave it in this account for 60 months, you may be exempt from full tax.
This is good for the state as it strengthens long-term savings (which is very much lacking and perhaps deliberately exempt TBS savings from the 6% owe), and it is beneficial for banks as they do not have to constantly advertise and act on for a portion of the new source and for the customer, it is good not to break the deposit before maturity. Otherwise there is no drawback to the design because even if we need the money before the end of 3-5 years, we can take it out anyway and pay only the “normal tax”. Partial withdrawal is only possible after the 3rd year.
Why is this good now at the end of the year?
When calculating 3-5 years, they look at calendar years, but with a collection year followed by tax years.
That is, if we open TBSZ this year, this is the collecting year, and we can deposit money into the account every time until the end of December. Next year will start the first tax year and we will be able to withdraw money as early as 2017, but the end of year 5 will be at the end of 2019. So the total savings time can be 5 years and 2 days (if you open the account at the end of December), but if you are thinking about a longer term and want to take advantage of the tax advantage, it is worth opening the TBSZ in January and almost 6 years we can enjoy tax exemption.
We can open TBSZ every year, the general rule is that a person in a financial institution can only open one account per year. That is, we can open new accounts with several financial institutions at the same time each year, but if we open a bank account in January, for example, and then close it in May, we will not be able to open a new account with that bank that year.
It is a good tactic for shorter term deposits as well, if you do not deposit all your money in a single deposit, but make more from the same deposits at the same time (even at the same bank), so if you do not need all the money, other deposits may continue to earn interest. We can do the same for TBSZ account deposits, just a bit more macerated due to the 1 year / 1 account limit.
It’s already mobile
Perhaps TBSZ was not so widespread because before 2014, we had to leave our money for 3-5 years at the financial institution where the account was opened. Many people were not happy with this, because if we did not fix the money for a fixed period of 3 or 5 years (because we can choose to have shorter term deposits), we may have received much lower interest rates than other banks. Starting last year, we can migrate our TBSZ account, which in practice works by giving the bank a certificate of when we opened the TBSZ account, how much we put on it, and how much money was accumulated on the account when it was moved, will have to accept it and act accordingly on any deduction.
Why choose a deposit?
First we have to decide in what currency we will deposit the money, because we can do it not only in HUF. Euro interest rates go up to 1.52%, with Shoprom Bank providing the highest interest rate. For foreign currency savers, interest rates may not be so important, but exchange rate gains, which can earn multiple times the annual interest rate in a month, although anyone who wants to speculate and withdraw money at a weaker forint may not be the best form of savings.
Forint deposits are easier because of the obvious interest rates and banks do not impose any extra conditions for higher interest rates on 3-5 year plans (shorter maturities, special rates still often require you to bring fresh money to your bank, buy with your credit card or we can even transfer our income or buy mutual funds along with the deposit) and the account management fee is waived at most banks.
At present, 13 banks offer deposits for 3-5 years, but not only interest, but also whether we can open a TBSZ account with the bank (surprisingly, this is not possible everywhere). If not, we can still hold our money for 3-5 years (if the bank has such a deposit), but we will have to pay eho and interest tax.You do not have to fix your money for 3-5 years, and most banks can deposit shorter term deposits in TBSZ accounts. There are also deposits that are really convenient with a deposit term of 3 or 5 years plus the remainder of the collection year (ie 5 years + 2 months up to 6 years – 2 days), such as at Rosebank, Weshare Bank and FFB- with her.
When choosing the right deposit
You need to think about whether or not you expect an increase in interest during the deposit period. If not, or if we consider it likely that interest rates will be reduced, we will opt for a fixed rate facility and will know in advance exactly how much we will receive. If, on the other hand, we expect an increase in interest, it is worth choosing a deposit with a variable interest rate – meaning that the interest rate on the deposit is tied to some reference rate (usually the central bank base rate), and if it goes up, our deposit interest rate will increase. , so we can do better than the fixed rate.
One of the best choices for a 3-year term deposit is the Grandsave Bank Long Term Deposit, which is priced at the central bank base rate (always + 1%), the full interest rate is paid at the end of the term, and even if the deposit is broken.