As the government loan interest rate rises, the tax on ISK (investment savings account) also becomes higher. Next year, it is expected to land at 1.179 percent, an increase of 34 percent, according to the National Debt Office’s forecast for the government loan interest rate that governs the standard tax.
But despite higher taxes, Shoka Åhrman, savings economist at the pension company SPP, does not believe that this will mean that ISK savings will become less popular.
— In kronor, there won’t be that much of a difference. If you look generally, it is still a good option in terms of tax.
“Popular movement”
Saving in an investment savings account has been described as a popular movement. 3.7 million Swedes have an average of 1.5 ISK accounts, according to the Tax Agency.
That it has become so popular is due to the fact that it is a simple and advantageous way of saving, Shoka Åhrman believes.
— When ISK was introduced in 2012, the tax level was very low, which has made ISK an incredibly advantageous way to save.
Requires higher yield
The average saver has SEK 450,000 in their ISK, according to Aktiespararna. For it, next year’s increase means a tax of SEK 5,300. An increase of just over SEK 1,300 compared to the year before.
For those who have 100,000 in their ISK account, the tax is almost SEK 1,200, approximately SEK 300 more than last year.
And with higher taxes, the yield needs to be higher in order not to be eaten up by the tax.
— What is required is that you become more aware today of the yield you have in order for it to be profitable. A minimum return is estimated to be 4 percent, which is a marginal increase from previous years, says Åhrman.
Good over time
Aktiespararna’s CEO Joacim Olsson also thinks that saving in ISK is still a good option.
— Basically, you should continue to save on ISK as long as the tax does not rise too much. It is a form of savings that is good over time. But bond funds are not as good an option to have on ISK, where you probably won’t get enough returns.