Deferring the tax to redemption is worth €155 in this scenario: an accumulating fund withholds nothing along the way, while a term deposit withholds the rate from every interest credit and that slice stops compounding.
Today's purchasing power applies 2% of annual inflation to the net value with tax every year. Inflation is an editable assumption (the ECB target), not a forecast.
| Year | Interest | Balance |
|---|---|---|
| 1 | €79 | €2,279 |
| 2 | €224 | €3,624 |
| 3 | €437 | €5,037 |
| 4 | €722 | €6,522 |
| 5 | €1,084 | €8,084 |
| 6 | €1,525 | €9,725 |
| 7 | €2,051 | €11,451 |
| 8 | €2,665 | €13,265 |
| 9 | €3,371 | €15,171 |
| 10 | €4,175 | €17,175 |
Educational estimate, not financial advice. Returns are not guaranteed.