I want to put $2-300,000 in a savings account. Will I get taxed high from my interest? I heard it was 33% but that’s about a 1/3 of you’re interest.
Categories
Thinking of investing your savings?
While increasing your savings is good, multiplying your money through smart investments feels great - there are lots of opportunities out there and you can be successful if you're arming yourself with the right information.
Where to start?
If you're going to try your luck on the stock market or trading options, first start by learning the basics and delay as much as possible buying real positions. One way of getting hands-on experience with the markets is through online trading - either forex or binary options are good learning grounds and most online brokers offer trial accounts free of charge (if you're wondering what are binary options, 24option.com has very good resources on it, besides offering a free practice account and a wealth of information about binary trading in general). Final warning for the very eager: binary options are exotic financial instruments; real trading involves substantial risk of monetary loss.
4 Comments
For any interest you earn, you will have to pay tax and the amount will depend on your tax situation. It will probably be about 20%, but ask at the bank, or the place you work.
But as you have such a big amount of money, you will probably do much better investing much of it in the stock market, or buying some property. There also, tax is unavoidable. How else can Bush pay for bringing democracy to Iraq, Afghanistan etc?
Savings accounts are taxed the same as income you get from work. Whatever your pay from your job is, add the amount of interest from the savings account to that. That’s your total income.
Also, savings accounts are probably the lowest interest earning types of accounts. If you wan to earn money with that money, call a few financial advisors and get different opinions on what to do with that money. Shop around. Don’t necessarily take the first suggestion. Make them compete for your business.
if you have 2~300k you will be wasting your time to put that much into a savings account. if you are really worried about atxes put all that into a muni so that 1 you cant touch it for a while because you are not really informed about money. and 2 you will recieve a interest rate that is tax free.
All income is taxed, interest under $1500 is listed directly on the first page of the 1040, over $1500 you need schedule B. The rate will depend on your total income bracket. It will be the same as your other income.http://www.irs.gov/