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tagesgeldkonto tax

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So I want to save something on the side and I was thinking about a tagesgeldkonto. Reading around, it seems that it will give me the freedom to access my savings whenever and how ofteh I choose. I'm not particularly concerned about the interest rate since this account will just be a substitute to "saving under the mattress".

 

With my flaky german I was able to understand that no tax is applied for the first 801E (or 1602E in the case of couples) but I was unable to find out how the tax is being deducted if you save more than that. Do I need to declare it in my steuererklaerung or does the bank just take care of it and pays the Finanzamt?

 

Can anyone help me out with that?

Also, you guys know of any other options to keep your savings safe, do tell.

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You describe the tax principle.  The process is the other way.  Tax will be deducted unless you instruct your bank to apply the 801 tax free allowance.   You fill out an instruction form and give it to them.   Otherwise, they just deduct tax and then recover it via your annual tax declaration.  

 

(Many of us have more than one provider, so  our multiple banks or brokers will not know where we stand relative to that 801 and thus whether their individual balance of ours should be taxed or not).

 

This matter of whether savings are "safe" is a whole different topic.   There are various threads on savings.   Savings at bank are depreciating at current interest rates, which some people do not see as "safe" anyway.   You could use better physical solutions like a bank box (but cash is never insured in them).  My response to "holding cash is risky, as well as depreciating" is increasingly not to have it.  Pay down debt and mortgage,  renovate your home, buy physical assets that may hold value or at least be usable (e.g. property), invest in you.   Typical investment forms are never no risk but some are lower risk than others.   

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You can split this 801 in several parts and use it in multiple banks. So the total should be 801 per person 1602 per couple so on..at the present interest  rate, to reach 801 euros you should have really lot of money under the matress.😀

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6 minutes ago, neoanderson2009 said:

You can split this 801 in several parts and use it in multiple banks.

 

I learned something there, did not know that, thanks :)   I can just about manage one form.  Mine is currently actually on my depot  (exactly because it is pointless on my Tagesgeld) and so that of course that has been bouncing all over the place recently.  Sometimes a nice gain puts me above, but it is not before long I am underneath again :blink:.

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21 minutes ago, swimmer said:

You describe the tax principle.  The process is the other way.  Tax will be deducted unless you instruct your bank to apply the 801 tax free allowance.   You fill out an instruction form and give it to them.   Otherwise, they just deduct tax and then recover it via your annual tax declaration.  

 

(Many of us have more than one provider, so  our multiple banks or brokers will not know where we stand relative to that 801 and thus whether their individual balance of ours should be taxed or not).

 

This matter of whether savings are "safe" is a whole different topic.   There are various threads on savings.   Savings at bank are depreciating at current interest rates, which some people do not see as "safe" anyway.   You could use better physical solutions like a bank box (but cash is never insured in them).  My response to "holding cash is risky, as well as depreciating" is increasingly not to have it.  Pay down debt and mortgage,  renovate your home, buy physical assets that may hold value or at least be usable (e.g. property), invest in you.   Typical investment forms are never no risk but some are lower risk than others.   

My long term plan is to buy a flat for myself but until I manage to put aside a hefty amount (50k or so) I need to keep it somewhere and I prefer a bank over hard cash. Don't want someone to break into my house and steal that alongside other material assets.

 

Also, one thing I don't understand. So the bank deducts the tax and I don't actually need to do anything or?

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You are perfectly free to let the bank go on deducting tax at source.  Correct.      If you want your tax free allowance back, you would deal with that in your year end return.

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2 minutes ago, swimmer said:

You are perfectly free to let the bank go on deducting tax at source.  Correct.      If you want your tax free allowance back, you would deal with that in your year end return.

got it, thx.

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1 hour ago, xcxvt said:

Also, you guys know of any other options to keep your savings safe, do tell.

Give it to Chuck Norris 🤗.

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@swimmerAt present tagesgeld konto gives really nothing..may be even negative in real terms.. any suggestions for investments for the duration of 10-15 years just to keep above the inflation?

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11 hours ago, xcxvt said:

My long term plan is to buy a flat for myself but until I manage to put aside a hefty amount (50k or so) I need to keep it somewhere and I prefer a bank over hard cash. Don't want someone to break into my house and steal that alongside other material assets.

 

Also, one thing I don't understand. So the bank deducts the tax and I don't actually need to do anything or?

 

 

Yes and no.

 

 

At the end of the tax year all of the banks that you use which provide interest will issue you a statement which states how much interest you received and how much tax you paid.  You then need to use this on your tax return as it is considered income.

 

As @neoanderson2009 says, you can split the amount between different accounts.  When you do your tax return then the Finanzamt will actually even out these amounts and the total you paid, so they will give you a rebate if you paid too much or tax you more if you paid too little!

 

Although to be honest for most normal people who are just saving a bit, and with today's interest rates it doesn't often make much difference!

 

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1 hour ago, dj_jay_smith said:

 

 

Yes and no.

 

 

At the end of the tax year all of the banks that you use which provide interest will issue you a statement which states how much interest you received and how much tax you paid.  You then need to use this on your tax return as it is considered income.

 

As @neoanderson2009 says, you can split the amount between different accounts.  When you do your tax return then the Finanzamt will actually even out these amounts and the total you paid, so they will give you a rebate if you paid too much or tax you more if you paid too little!

 

Although to be honest for most normal people who are just saving a bit, and with today's interest rates it doesn't often make much difference!

 

Alright, got it.

 

Thank you everyone for your time and answers!

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