Does a savings account in a commercial bank with an expected annual yield of 8% get taxed?

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Does a savings account in a commercial bank with an expected annual yield of 8% get taxed?

2007-10-22 14:33:07 · 2 answers · asked by cheques play 1 in Business & Finance ➔ Personal Finance

Im sorry the figure is actually 3%.

2007-10-22 14:34:15 · update #1

2 answers

You pay taxes on the interest that you earn.

You can find better rates online:

INGDirect.com
HSBCDirect.com

There are a few others. I have accounts at the above 2. The HSBC account pays a little better interest but the ING account is much easier to use.

2007-10-22 15:17:13 · answer #1 · answered by Wayne Z 7 · 1⤊ 0⤋

All earned income gets taxed.

2007-10-22 22:40:04 · answer #2 · answered by Mr. Prefect 6 · 1⤊ 0⤋