Individual investment account with Sberbank

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Many people don't know, but in banks, in addition to deposits, you can also invest your own money in investment securities. At the same time, it is possible to earn not only interest, but also receive a tax deduction from the state. The instrument for these operations is an individual investment account (IIA).

Determining an Individual Investment Account (IIA)

This concept was introduced at the beginning of 2015 in order to attract the population to invest in securities. Experienced investors quickly mastered this tool and began to receive tax benefits from the same transactions that they had previously performed. The amount of the tax deduction can be up to 52,000 rubles, and this is in addition to the fact that a person earns on the stock exchange on their own or with the help of a broker.

Individual investment account (IIA) is a deposit to a brokerage account or a trust account, through which you can make transactions with securities, receive dividends andtax incentives. All movements on these accounts take place on the Russian stock markets.

Opening and all payments are made in rubles. The maximum contribution per year is set to 400,000 rubles. To receive a tax deduction, the account must have existed for at least 3 years. And if during this period the owner wants to partially or completely withdraw the funds, then this account will be closed and it will be necessary to return the previously received funds from the state. These investments can also be inherited, but the heirs will not receive tax benefits.

The difference between a brokerage account and an IIA is the restrictions that are necessary to be able to receive tax benefits.

Namely:

1. One person can open only one individual investment account.
2. The total amount of investment funds for the year cannot exceed 1 million rubles.
3. Account valid for at least 3 years.

You can open this account only in specialized institutions or banks. These can be brokerage or management companies, whose activities are regulated by law and controlled by the relevant authorities. All of them provide the right to either use the account on their own, or 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) with Sberbank, as it is considered reliable. It is also possible to transfer your investmentaccount 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 to assign the status of IIS to an early opened brokerage account. Dividend profits can be transferred to any bank account.

Who is IIS suitable for

An individual investment account can be opened by any individual who has reached the age of eighteen. However, there is no maximum threshold. Regardless of where a person works and what his work experience is, he will be able to open this account. The main thing is that he be a resident and taxpayer of the Russian Federation.

Conditions for opening IIS in Sberbank

Sberbank is a fairly large organization and also provides the opportunity to open individual investment accounts.

He sets his own specific conditions for these operations.

1. Open an account only for an individual.
2. Only citizens of the Russian Federation can use this service.
3. It is possible to open only one personal Sberbank investment account per person.
4. Calculations on IIS are made only in cash.
5. You can make credit transactions. Debit transactions are not provided.
6. The maximum amount of contributions per year is 400 thousand rubles.
7. Opening an account can be done by existing clients with whom there is an agreement on brokerage services, as well as completely new persons.
8. Minimumthe period of existence of the account is not less than 3 years from the date of signing the agreement. You can deposit funds both immediately and later, the main thing is to make an income before December 31 of the current year. The maximum term of use is 5 years.
9. All user fees are not paid with IIS, so you will have to open an additional debit account.
10. You must first decide on the type of tax deduction, otherwise it will not be possible to change it later. Yes, and it is impossible to combine 2 types of benefits.
11. If the client decides to close the account, he will lose all tax benefits.

Many clients liked the individual investment account (IIA) in Sberbank. There are quite a lot of positive reviews about him.

How to open an IIS in Sberbank

To understand how to open an investment account with Sberbank, you need to contact the bank branch in person, or by calling the hotline first. It is important to know that not all branches provide such services, so it is worth asking this question beforehand.

After consulting and learning the tariffs and conditions, you need to collect a certain package of documents, namely a passport, a certificate of TIN and SNILS. On the appointed day, come to the department and sign the questionnaire and application prepared by the 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 the management of his funds to a management company, which he must first select and pay a commission for its services.

After all the nuances are agreed upon, a notification will come from the bank and only then you can 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 has an Internet bank connected to him. But still, it is important to immediately ask a competent specialist all the necessary questions by phone or in person, then there will be no problems managing this account.

IIS management

As previously mentioned, there are two ways to manage an account: on your own or with the help of a management company.

With the first method, Sberbank provides an opportunity to attend training seminars, receive telephone consultations and have a free subscription to news and reviews of the securities markets. Yes, and managing an individual investment account of Sberbank in your personal account is quite easy.

It is possible to invest in various assets:

• bonds (low yield, minimal risk),
• Mutual investment funds (average return and risk),
• stocks (high return and risk) and many other instruments.

If all rights are transferred to the management company, then it itself decides where and how much to invest money in order to get the maximum profit. And judging by the reviews, the individual investment account (IIA) of Sberbank is mainly used this way, transferring the 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 expiration of 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 transactions for 3 years. In other words, the client will have a tax holiday, where you can also save a lot.

How to get a type 1 tax deduction

In order to be eligible for tax benefits of the first type, it is necessary that a person has the status of a personal income tax payer, that is, he receives income that forms the basis for this tax. At the same time, when the account holder decides to close it after 3 years, he will be obliged to pay personal income tax on the amount received as a result of investment transactions. And if the account is closed before 3 years, then the client will also have to return the amount of the tax deduction received.

In order to receive this deduction, you must apply to the tax office by April 30 with a 3-NDFL declaration indicating the income received for the previous year. At the same time, you must also provide documents confirming this income, a certificate of depositing funds to an investment account, an application asking for a tax refund and details of where to transfer these funds. If the client is working and officiallyreceives his salary, he must also show a certificate of employment, namely 2-NDFL.

It is also possible to submit documents via the Internet and do everything remotely so as not to travel anywhere and not stand in long lines.

This option of tax benefits is suitable for clients who have transferred their account to a 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 kept their funds on deposits.

How to get type 2 tax deduction

It is possible to receive this type of deduction 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 type of activity.

In order to be able to take advantage of the second type of benefits, you must provide a certificate from your brokerage company from the tax office that this particular type of deduction has been chosen and that the client has not previously received other tax benefits. It is this company that is the tax agent, which 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 issue, which means they make more risky operations in order to get the maximum profit. This option is also suitable for people who work unofficially or, in principle, do not carry out labor activities. This may includestudents and pensioners.

Since the deduction is paid after 3 years, there is no need to return any amounts in case of 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. This can also be done after the expiration of a three-year period, since the first type of deduction does not have to be received 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 own advantages and disadvantages. Consider them separately.

IIS advantages:

1. The opportunity to invest for people who do not even understand these issues and have never worked on stock exchanges and have not even heard of the Sberbank investment account. Feedback on increasing financial literacy motivates people and makes it clear that anyone can engage in investments.
2. Profit will be much higher than using a regular bank deposit.
3. A small amount of investment is required, which is very beneficial for first-time clients.
4. 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 conducts seminars and trains. And in the personal account of Sberbank, an investment account is easy to master.
5. Providing reliability, since Sberbank is a fairly large organization and has been on the market for a very long time,therefore more credible than other unknown organizations.

Cons of IIS:

1. There are still risks, since the state does not provide guarantees for this type of activity.
2. It will be difficult to invest during an economic downturn, then it will bring little income.
3. You may get caught by a dishonest management company that does not indicate in the reports all the real income that was received. Here it is important to choose a reliable company in order not to lose income.

The pros and cons of an individual investment account of Sberbank make it possible to assess the risks of investing and protect against unnecessary mistakes. This is important to consider.

Investment account with Sberbank: customer reviews

There are mixed reviews for this product, but mostly positive. Sberbank specialists strongly recommend that inexperienced investors use the services of a professional. Then clients do not need to follow the stock market. Many say that they did not regret, and even acquired financial literacy. Some have received returns of up to 20% with little experience in investing, and this is significantly higher than the profit received if they used a regular bank deposit.

Negative reviews are provoked by ignorance of all the nuances of working with an investment account of Sberbank, therefore, before doing this, you should ask all the exciting questions before signing the contract, which is also necessaryreview carefully. 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 receive the desired income, this is also not to many people's liking.

An individual investment account in Sberbank has collected a lot of reviews, but you should first of all try this tool yourself, relying on the mistakes of others, then there will be a 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, and the economy as a whole will follow. When people stop keeping their money at home under their pillows and begin to understand the world of investing, then their income will not be reduced 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 a double benefit. Firstly, tax incentives from the state, and secondly, a good profit from activities in the stock market. This is still much more than what a client would deposit funds for a simple bank deposit.

Yes, and now there is no need to run to 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 minor drawbacks regarding the maximum amount and term 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.