What is an equity savings account?
An equity savings account is an account designed for investing in equities. With an equity savings account, you can trade in the shares of both Finnish and foreign listed companies without having to pay taxes immediately.
Taxes on returns and dividends are deferred on an equity savings account, which means you can reinvest your returns and dividends in full. This enables you to reap the full benefits of compound interest.
- You can only have one equity savings account at a time. In practice, this means you can only open the account with one bank.
- The equity savings account is only intended for trading in shares, so you can’t use it to trade in exchange-traded funds (ETFs), for example. You also can’t transfer shares that you already own to the account.
- You can deposit amounts that suit you best, up to 100,000 euros, at your preferred pace. However, the value of your total holdings may end up being higher than 100,000 euros, as this limit does not account for any increase in value and dividends you may receive.