Equity savings account news (16 June 2020)
The construction of the equity savings account is progressing, and we’re putting in a vigorous effort to be able to introduce this account to our customers as soon as possible. At the moment, we’re building an entirely new platform for the equity savings account to ensure the best possible user experience and secure operational reliability. We’ll inform you about the schedule, features and pricing of the equity savings account on this page as things progress.
Good things are worth waiting for, but while waiting for the equity savings account, you can start investing in other ways. Every day is a good day to start long-term accumulation of investment assets. We offer ETF trading free of charge for the rest of the year to those waiting for the equity savings account and later on campaign benefits to those who open an equity savings account.
Learn more about the ETF campaign >
What is an equity savings account all about?
The equity savings account is an account within which you can buy and sell Finnish and foreign listed equities and, for example, equities on First North without any direct tax implications. Dividends and interest amounts within the equity savings account are also exempt from tax and you can reinvest them within the account without paying any tax in between. As holder of the equity savings account, you can therefore utilise the compound interest effect phenomenon as taxes on dividends and capital gains do not eat up capital. You will not pay tax on investment income until you withdraw funds from your equity savings account.
The equity savings account is suitable for long-term investing and saving
The equity savings account is designed for all those interested in investing in equities. In particular, it is suitable for investors with a long-term horizon, who want to update their portfolio content from time to time and re-invest any income and dividends accrued in the equity savings account.
The equity savings account can be opened by a private customer and each private customer can at a time hold only one equity savings account. It is not possible to use an equity savings account to open the account with many banks at the same time but if the customer wishes so, they can transfer the account from a bank to another without any tax implications.
A private person can deposit 50,000 euros into the equity savings account
You can deposit money into the equity savings account at the desired pace and in desired amounts up to 50,000 euros, and you can invest the amount in equities of your choice. The 50,000-euro limit applies to the amount to be transferred to the account. However, the value of your investment may be higher or lower than that.
You can invest only in equities through the equity savings account. This means that you cannot use the equity savings account to buy mutual fund units, ETFs or other listed products. Furthermore, you cannot transfer your previous equity holdings to the account.
Tax will not be payable until you withdraw funds from the equity savings account
If you withdraw funds from the equity savings account, tax on income you may earn will be levied based on the capital gains tax, currently at 30%. This also applies to dividends. Only 85% of the dividends outside of the equity savings account are subject to tax. Any losses are tax-deductible only if the equity savings account is closed, i.e. all assets are sold and are withdrawn from the equity savings account.
