Many do not know, but in addition to deposits, banks can also invest their own money in investment securities. At the same time, it is possible to earn not only interest, but also to receive a tax deduction from the state. The tool for these operations is an individual investment account (IIA).
Definition of an individual investment account (IIA)
This concept was introduced at the beginning of 2015 in order to attract people to invest in securities. Experienced investors quickly mastered this tool and began to receive tax benefits from the same operations that they had previously done. The amount of tax deduction can be up to 52,000 rubles, and this is in addition to the fact that a person will earn on the exchange independently or with the help of a broker.
An individual investment account (IIA) is a contribution to a brokerage account or trust account, through which you can make transactions with securities, receive dividends and tax benefits. All movements on these accounts occur in the Russian stock markets.
Opening and all calculations are made in rubles. The maximum contribution per year is set to 400,000 rubles. To receive a tax deduction, it is necessary that the account lasts at least 3 years. And if during this period the owner wants to partially or fully collect the funds, then this account will be closed and it will be necessary to return the funds received earlier from the state. These investments can also be inherited, but the heirs will not receive tax benefits.
The difference between a broker account and IIS is in the restrictions that are necessary in order to be able to receive tax benefits.
Namely:
- One person can open only one individual investment account.
- The total amount of investment funds for the year may not exceed 1 million rubles.
- Validity of the account at least 3 years.
You can open this account only in specialized institutions or banks. This may be brokerage or management companies, the activities of which are regulated by law and controlled by the relevant authorities. All of them provide the right to either independently use the account, or to trust a specialist in this field.
Each organization has its own conditions, including a different amount of the down payment, which varies from 10 to 300 thousand rubles. Many people choose to open an individual investment account (IIA) at Sberbank, as it is considered reliable. It is also possible to transfer your investment account from one company to another without losing the right to tax benefits. But it is strictly forbidden to carry out activities in the Forex market, as well as assign the status of IMS to an early open brokerage account. Profits received in the form of dividends can be transferred to any bank accounts.
Who is IIS suitable for?
An individual investment account can be opened by any private person who has reached the age of eighteen. In this case, there is no maximum threshold. Regardless of where the person works and what his seniority is, he will be able to open this account. The main thing is that he is a resident and taxpayer of the Russian Federation.
Conditions for opening an IIS in Sberbank
Sberbank is a fairly large organization and also provides the opportunity to open individual investment accounts.
He exposes his specific conditions for these operations.
- An account is opened only to an individual.
- Only citizens of the Russian Federation can use this service.
- It is possible to open only one personal investment account of Sberbank per person.
- Settlements for IMS are made only in cash.
- You can make incoming transactions. Expense operations are not provided.
- The maximum amount of contributions per year is 400 thousand rubles.
- An account can be opened both by existing clients with whom there is a contract for brokerage services, and completely new persons.
- The minimum life of an account is at least 3 years from the date of signing the contract. You can deposit funds either immediately or later, the main thing is to make a parish by December 31 of the current year. The maximum term of use is 5 years.
- All usage fees are not paid with IIS, so you will have to open an additional debit account.
- You must first determine the type of tax deduction, otherwise it can not be changed later. And it is impossible to combine 2 types of benefits.
- If the client decides to close the account, then he will lose all tax benefits.
Many customers liked Sberbank's Individual Investment Account (IIA). There are quite a lot of positive reviews about him.
How to open IMS in Sberbank
To understand how to open an investment account in Sberbank, you must contact the bank branch in person or by calling the hotline first. It is important to know that not all departments provide such services, so you should first find out this question.
After consulting and finding out the tariffs and conditions, you need to collect a certain package of documents, namely a passport, TIN and SNILS certificate. On the appointed day, come to the department and sign the questionnaire and application, which will be prepared by a specialist.
You can manage your account yourself, then Sberbank provides only brokerage services, namely, a trading platform. And if the client does not understand this issue, then he transfers control of his funds to the management company, which he must first select and pay a commission for its services.
After all the nuances have been agreed upon, a notification will be sent from the bank and only then can you replenish your investment account.
Also, an investment brokerage account of Sberbank can be opened online if a person is already a client of this bank and he has an Internet bank connected. But nevertheless, it is important to ask a competent specialist all the necessary questions immediately by phone or in person, then there will be no problems managing this account.
IIS Management
As previously said, you can manage your account in two ways: on your own or with the help of a management company.
With the first method, Sberbank provides the opportunity to attend training seminars, receive telephone consultations and have a free subscription to news and reviews of securities markets. And managing Sberbank's individual investment account in your account is quite easy.
It is possible to invest in various assets:
- bonds (low yield, minimal risk),
- Mutual funds (average return and risk),
- stocks (high yield and risk) and many other tools.
If all rights are transferred to the management company, then it already decides where and how much to invest money to get the maximum profit. And judging by the reviews, Sberbank's individual investment account (IIA) is mainly used in this way, transferring rights to trust management.
IIS and tax deductions
A person has a choice of which tax benefits to use when using an individual investment account.
The first type of tax deduction provides that after the tax period the client will have the opportunity to receive 13% of the total amount that he invested in the account during the previous year. And if you take the maximum possible amount, which is 400,000 rubles, then the deduction will be 52,000 rubles.
The second type of tax deduction involves getting rid of personal income tax on income received from all investment operations for 3 years. In other words, the client will have a tax break, where you can also save money.
How to get a tax deduction of type 1
In order to be eligible for tax benefits of the first type, it is necessary that a person has the status of a taxpayer for personal income tax, that is, receive income that forms the basis for this tax. Moreover, when the account holder decides to close it after 3 years, he will be required to pay personal income tax on the amount received as a result of investment transactions. And if the account closes before 3 years, then the client will also have to return the received amount of tax deduction.
In order to receive this deduction, it is necessary to apply to the tax with a 3-NDFL declaration stating the income received for the previous year before April 30. At the same time, you must also provide documents confirming this income, a certificate of depositing funds to the investment account, a statement asking you to make a tax refund and details where to transfer these funds. If the client works and officially receives his salary, then he must also show a certificate of employment, namely 2-personal income tax.
It is also possible to submit documents via the Internet and do everything remotely, so as not to go anywhere and not to stand in huge queues.
This option of tax benefits is suitable for customers who have transferred their account to the management company, they have official income and their amount is close to the maximum. Most often, these deductions are used by conservative people who previously deposited their funds.
How to get a tax deduction of type 2
A deduction of this type is possible only after 3 years. If the account holder closes it earlier, then he is obliged to pay personal income tax on the income received from the investment activity.
In order to have the opportunity to take advantage of the benefits of the second type, you must provide a certificate from your tax brokerage company that this particular type of deduction has been chosen and the client has not received other tax benefits before. It is this company that is the tax agent that will not withhold this tax on income from investment operations.
The second type of deduction is more suitable for active investors who decide to independently conduct activities on their investment account and are well versed in this matter, which means they perform more risky operations in order to get maximum profit. This option is also suitable for people who work informally or, in principle, do not work. This includes students and senior citizens.
Since the deduction is paid after 3 years, it is not necessary to return any amounts upon early termination, but only pay for the income that was received as a result of investment operations.
There is no need to make a choice of tax benefits at the time of opening an account. You can do this after a three-year period, since the first type of deduction is not necessary to receive immediately after the end of the first tax period.
Pros and cons of IIS in Sberbank
Like any other banking product, IIS in Sberbank has its advantages and disadvantages. Let's consider them separately.
IIS advantages:
- The opportunity to invest in people who do not even understand these issues and have never worked on the stock exchanges and have not even heard about the investment account of Sberbank. Reviews about increasing people's financial literacy motivate and make it clear that anyone can engage in investments.
- Profit will be much higher than using a regular deposit in a bank.
- A small amount of investment is required, which is very beneficial for novice customers.
- Even if there is no experience, there is an opportunity to get it, because even if the method of independent account management is chosen, Sberbank still provides the necessary assistance and even holds seminars and trains. And in the personal account of Sberbank, an investment account is easy to master.
- Providing reliability, since Sberbank is a rather large organization and has existed on the market for a very long time, therefore it causes more confidence than other unknown organizations.
Cons IIS:
- There are still risks, as the state does not provide guarantees for this type of activity.
- It will be difficult to invest in a period of economic downturn, then it will bring a small income.
- An dishonest management company may be caught that does not indicate in the reports all the real income that has been received. It is important to choose a reliable company, so as not to lose in revenue.
The pros and cons of Sberbank's individual investment account make it possible to assess investment risks and protect against unnecessary mistakes. This is important to consider.
Investment account at Sberbank: customer reviews
There are various reviews regarding this product, but mostly positive. Sberbank experts strongly recommend inexperienced investors to use the services of a professional. Then customers do not need to monitor the stock market. Many say that they did not regret, but even acquired financial literacy. Some earned income up to 20% without having much experience in investing, and this significantly exceeds the profit made if a regular deposit in the bank were used.
Negative reviews are provoked by ignorance of all the nuances of working with the investment account of Sberbank, so before you deal with this matter, you should ask all the exciting questions before signing the agreement, which you must also carefully read. It is also important to be prepared for the fact that if you want to request funds ahead of schedule, you will have to pay a commission and, possibly, not get the desired income, this is also not for everyone.
An individual investment account in Sberbank has gathered a lot of reviews, but it is worth trying this tool yourself first of all, relying on the mistakes of others, then there will be good profit.
IIS is primarily created by the state in order to improve the financial literacy of people. Thanks to this, the investment market will rise, followed by the economy as a whole. When people stop keeping their funds at home under their pillows and begin to understand the world of investing, then their income will not decrease by inflation, and the funds put into circulation will favorably affect the rapid growth of the economy.
When opening an individual investment account, a person in any case will receive double benefits. Firstly, tax incentives from the state, and secondly, good profit from activities in the stock market. This is still much more than the client would have deposited funds on a simple deposit at the bank.
And now there is no need to run around banks and tax authorities, since everything can be done remotely, even apply for tax deductions and not stand in a huge queue.
Yes, there are small drawbacks regarding the maximum amount and period of use, but this issue is also being considered, and perhaps in the near future experienced investors will have more opportunities to get the maximum profit.