Rising interest rates: Adjust your exemption order now - advice from a financial expert

Rising interest rates: Adjust your exemption order now - advice from a financial expert

According to a report by www.presseportal.de,

Rising interest rates often unnoticed lead to capital gains that are taxed. Savers should therefore check their exemption orders at the end of the year and adjust them if necessary. Fortunately, the days of zero and low interest rates are over, as rising interest rates allow investors to benefit from higher returns. However, it should be noted that capital gains for single people are only tax-free up to 1,000 euros per year (for married couples taxed together: 2,000 euros). This allowance is claimed through a so-called exemption order.

With an interest rate of two percent, investments of up to 50,000 euros remain tax-free for a single person, with three percent 33,333 euros and with four percent just 25,000 euros, calculates uniVersa insurance. If the interest income is above the saver's allowance, savers can invest their money in a tax-optimized way in a private pension insurance in order to benefit from tax-free growth in value during the savings phase.

In summary, it can be seen that rising interest rates have an impact on the tax burden on capital gains. It is recommended that exemption orders be checked in good time and adjusted if necessary in order to avoid possible tax disadvantages. This is particularly important for savers who have investments that exceed the saver allowance.

Overall, it is important for economists to note that rising interest rates not only impact investment returns, but also bring tax consequences that must be taken into account when managing portfolios. This can have an impact on the investment behavior of consumers and the strategies of financial institutions.