Free tool
Compound interest and savings calculator
What you'll have at the end, how much of it is interest and how much the tax office keeps along the way.
What compound interest is
With compound interest, the interest you're paid is added to your balance and from then on earns interest too. The more often it's paid and the longer you leave it, the more your savings grow. That's why, at the same TIN, a deposit that pays monthly earns slightly more than one that pays at the end of the year, and has a higher TAE.
TIN and TAE on a deposit
On deposits and savings accounts, the TAE includes the interest the bank pays you and any fees you must pay for the product, using interest before tax 1. To compare two deposits, look at the TAE and the term.
Tax: the withholding and what you finally pay
The bank withholds 19% of the interest it pays you and passes it to the tax office as an advance on your income tax (IRPF) 2. On your tax return, interest goes into the savings base, taxed at a rate that rises with the amount:
| Savings base | Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,000 to €50,000 | 21% |
| €50,000 to €200,000 | 23% |
| €200,000 to €300,000 | 27% |
| Over €300,000 | 30% |
What's the difference between TIN and TAE for savings?
The TIN is the rate applied to your balance. The TAE expresses what you earn in a year, allowing for how often interest is paid and any fees, so it's what you compare with.
Does it allow for inflation?
No: the calculator shows euros of each moment. If prices rise, that money will buy less than today.
Why is the withholding 19%?
It's the rate the law sets for interest on accounts and deposits 2. It's an advance: what you finally pay depends on your tax return.
Sources
- Circular 5/2012, de 27 de junio, del Banco de España, sobre transparencia de los servicios bancarios y responsabilidad en la concesión de préstamos. Texto consolidado, BOE. www.boe.es/buscar/act.php?id=BOE-A-2012-9058
- Ley 35/2006, de 28 de noviembre, del Impuesto sobre la Renta de las Personas Físicas, artículos 66, 76 y 101. Texto consolidado, BOE. www.boe.es/buscar/act.php?id=BOE-A-2006-20764
- Real Decreto-ley 16/2011, de 14 de octubre, por el que se crea el Fondo de Garantía de Depósitos de Entidades de Crédito. Texto consolidado, BOE. www.boe.es/buscar/act.php?id=BOE-A-2011-16173
General information, not financial advice. The calculators give estimates: what counts are the terms of your bank's offer. bancos.app is not a bank and isn't linked to any bank.