Deposit account or short-term government bonds: comparing the net yield
Two instruments that look alike but are taxed and work differently. To choose well you must look at the net figure, not the rate in the shop window.
The same gross rate does not pay the same
Interest on a deposit account is taxed at 26%; returns on Italian government bonds (BOT, BTP) at 12.5%. At the same gross rate, then, the government bond pays more after tax.
Here is an example with made-up numbers, just to see the mechanism: a deposit account offers 2.5% gross. After tax that is 1.85% (2.5 × 0.74). A one-year government bond gives the same net return with a gross rate of about 2.11% (2.5 × 0.74 ÷ 0.875). In other words a T-bill can yield about 0.39 points less than the deposit and end up in the same place.
Useful formula: equivalent government bond rate = deposit's gross rate × 0.74 ÷ 0.875, i.e. about 85% of that rate. Real rates change every week: check them when you decide.
What else differs
| Aspect | Deposit account | Short-term BOT/BTP |
|---|---|---|
| Tax | 26% on interest | 12.5% on the return |
| Guarantee | Deposit protection fund, up to €100,000 per bank | The issuing state (sovereign risk) |
| Liquidity | Flexible or locked (penalties or waits) | Sold on the market at a variable price |
| Stamp duty | Depends on the account: read the information sheet | 0.2% a year on the securities account value |
| Costs | Usually none | Purchase and custody fees |
How to choose
- Decide the maturity. If you need the money in three months, a bond maturing in a year carries the risk of selling early at a price that may differ from what you paid.
- Compare net, not gross. Apply the formula and allow for stamp duty and fees.
- Look at guarantee limits. With more than €100,000 at one bank, part of the sum is not covered by the protection fund.
- Keep true liquidity separate. The emergency fund must be available at once: see the guide on the emergency fund.
One limit to remember
Short-term government bonds are not free of price swings: if you sell one before maturity, the price can be higher or lower than what you paid. Held to maturity, the return is the one known at the start (barring issuer risk). If you need the money on a specific date, choose a maturity close to that date.
To run the numbers yourself use the bond yield calculator. For liquidity in retirement, see also the bucket strategy.
Sources
- Money.it, taxation of investments: 26% and 12.5%
- Fisco e Tasse, 2026 Budget Law tax changes
- FITD: deposit guarantee up to €100,000 per depositor
- Agenzia delle Entrate, circular 48/E/2012: stamp duty on accounts and passbooks
Try the tool: Net yield calculator for BTPs and bonds. Gross and net yield to maturity, with 12.5% or 26% tax, stamp duty and fees.
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Book a free callFor information and education only. This is not investment advice or a personal recommendation. Tax and pension rules change over time: always check current requirements with official sources (INPS, Agenzia delle Entrate).