What are the tax benefits of Save portfolios?

The returns on Save portfolios, like the Market Savings APY,* are taxed as long-term capital gains². This makes filing the returns you earn on your Save portfolio very efficient and appealing for customers, especially for more affluent customers. The following graphs show hypothetical tax situations to explain how Save portfolio returns would potentially be taxed². 

Editor's note: Average annual returns reflect the prevailing deposit rates in April 2023 and are based on hypothetical back-tested performance in the Save Moderate (legacy) portfolio from 2006 to April 2023 and are shown net of fees. To get the most up-to-date returns, visit joinsave.com/banking.

Example 1:

Assuming a marginal income tax of 28.40%, which is the average income tax for U.S. tax filers, and a long-term capital gain of 15%, the following scenario lays out the rate of return for regular savings accounts compared to Market Savings after taxes are factored in: 

Example 2:

The benefits after taxes are even better for more affluent customers with a higher tax rate. In this scenario, we're assuming a marginal income tax of 45%, and a long-term capital gain of 20%, the following scenario lays out the rate of return for regular savings accounts compared to Market Savings after taxes are factored in: