Investing and Financial Markets
Income Taxes
Banks and Financial Institutions

How does the US government tax savings account interest rates?

Top Answer
User Avatar
Wiki User
Answered 2008-10-03 22:32:19

It is taxed as income, just like salary. Pretty bad incentive for people to save. It is way higher than capital gains and dividends.

User Avatar

Your Answer


Still have questions?

Related Questions

What type of interest rate can you expect from a high yield savings account?

Interest rates vary depending on the bank the savings account is in. For a high yield savings account, interest rates can be from 0.95-3.0% annual percentage yield.

What are the interest rates for a savings account from Chase bank?

Chase currently offers an interest rate of .5 on their savings accounts. These are not high rates.

Does Scotiabank online offer competitive interest rates?

With around five different savings plans to choose from Scotia definitely offers competitive interest rates. Some of their plans are as follows: a daily interest savings account, power savings account, money master savings account, and a money master for RSP's account.

What are the typical interest rates on a savings account?

The typical interest rates on a savings account is around one to three percent. You can ask bank of america or us bank. Wells Fargo offers the highest percentage on savings.

Which pays a higher rate of interest a checking account or a savings account?

Generally a savings account pays more interest, but there are some checking accounts that offer rates that are very competitive to savings accounts.

Is there a significant difference on interest rates on savings account interest rates with Bank of America and Suntrust?

Bank of America and Suntrust offer very similar interest rates on savings accounts. For up to date information on savings accounts check

What was the average savings account interest in 2005?

The current savings interest rate in India is 4% per annum. It was only 3.5% in the year 2005. This is one of the highest interest rates in the world in terms of savings account interest rates. Developed countries like USA and Singapore offer interest rates of less than 1% per annum.

How do money market accounts differ from regular savings accounts?

The means of determining interest rate. Money market account interest rates are variable and track the money market. Savings account interest rates are usually fixed.

What are the interest rates on a savings account?

Savings account interest rates can vary depending on where you're banking. These can rand from 2 percent all the way down to .65 percent. This also depends on where you have your account and how long you've had it for or if you open an account up during these interest rate deals.

What exactly is a high interest savings account?

With a high interest savings account, the saver can get a large return on their savings. At current rates, the interest can range between 3-5%. However a large amount of accounts with higher interest may impose a penalty if you withdraw from that account.

Where is the best place to find a high interest savings account?

There are very few banks with high interest savings account. At best you can get an account with abotu 1% to 2% interest. Ally bank offers accounts and CDs with these rates and at times have specials for 5% lock in rates.

What is the average savings account interest rates now?

around 3 - 4 %

What are the best account rates for high interest savings?

High interest savings just aren't as high as they used to be, thanks to the low interest rates being set by the fed. If you are able to find a savings account giving greater than 2%, consider it too good to pass up.

What are the best high interest savings account rates?

The best high interest savings account rates include Nationwide Bank, with a 1.04% rate, Ally Bank with a 1.03% rate, and American Express, with a 1.00% rate as well.

What is the interest rate offered for a CItiBank savings account?

The interest rates offered in a CitiBank saving account varies depending on different things. The interest rates can be 3%+ and on some accounts up to 6%.

What are the interest rates for a ING savings account?

The interest rates for most ING savings accounts vary between 0.5% and 3% The higher rates are for accounts where a limited number of withdrawals are allowed in any one year.

What are the average simple savings account interest rates last 10 years?


What is the current interest rate offered on savings accounts at ridgewood savings bank?

On a personal savings account the interest rate is 0.79. The same goes for a business account. Other accounts may have different rates which are on their website.

When opening a banking account should you research the savings interest rates?

Yes, It would be only responsible to find out which bank has the best interest rates and how those rates would best serve the type of account that you are looking for.

Is a bank savings account interest rate better than a CD?

No, CD rates are higher, but you cannot withdraw the funds as easily as a bank savings account.

Where can one find the highest savings interest rates?

One can find the highest savings interest rates by going to the Savings Accounts website. The website has a list of the top 10 Savings Accounts that have high interest rates.

Which bank offers good savings rates in Dubai?

Check out Emirates NBD bank. They have attractive interest rates on savings account i.e. higher the balance maintained, higher the interest rate you get. Apart from this they also offer free international ATM/debit card with some of their savings account.

Where does one find the best interest rate for a banks saving account?

The best place on the internet to find the best interest rates for a bank savings account would be Money Supermarket. One can check all the savings rates and accounts in the United Kingdom.

Who can help with high interest online savings?

Online savings account interest rates are not fixed, and they change frequently. Online savings accounts can be researched by comparing many different online banks.

What is the definition of savings bank?

A savings bank is a bank that is dedicated to savings accounts. They don't have all the freedoms of a checking account, but pay higher interest rates.