We are facing new instruments that the tax reform has brought to promote the long-term savings of small savers.

For this, there are two types of products, individual long-term savings accounts and individual long-term insurance with the following characteristics:

  • On the one hand, the investment per contribution is limited to 5,000 euros per year.
  • Plans can only be made effective for the total in the form of capital.
  • For there to be an exemption from positive returns, a permanence of at least five years from the first contribution is necessary, but if any provision is made before the five-year period, the benefit is lost.

At the moment the interest rates are low, which means that with an investment of 5,000 euros per year and at an annual interest rate of 2% it could reach 100 euros of interest, and when 25,000 euros have been deposited after five years, 1,540.6 euros of interest accumulated in those five years would be reached if the rates continue in the same line, so the real tax benefit in that five years would be 292.7 euros.

This low tax benefit and their non-availability do not make them particularly attractive, at least at current rates.