Hey bunqers 🌈,

In Spain, banks show interest on savings in 2 standard ways: the TIN (tipo de interés nominal, or nominal interest rate) and the TAE (tasa anual equivalente, or annual equivalent rate). The TIN is the annual rate you earn on your savings balance. The TAE is what the TIN rate adds up to over a year, if your interest compounds.  

Your TAE will always be shown as a little higher than your TIN. This is because at bunq, we pay out your interest weekly, which keeps your interest growing. That’s why you can see up to 3.16% TAE in ads and up to 3.11% TIN in your app.

Heads up: the rates in this article only apply to Spanish residents.

What's the TIN?

The TIN (tipo de interés nominal, or nominal interest rate) is the annual rate you earn on your Savings Accounts before compounding, up to €100,000. The balance the TIN applies to is the total of your regular Savings Accounts,  Joint Savings Accounts, and Child Savings Accounts. Term Deposits are not included. 

Your balance can earn up to 3 different TIN rates. Which one applies depends on your threshold, which is your highest balance from the previous half-year: 

• 3.11% TIN on money above your threshold

• 1.61% TIN on your first €10,000 up to your threshold

• 1.51% TIN on any savings above €10,000 up to your threshold

If you're new to bunq, your threshold starts at €0, so all your savings earn 3.11% TIN up to €100,000.

The TIN rates are the same bunq’s Massinterest rates. Learn more about Massinterest.

What's the TAE, and why is it higher than the TIN?

The TAE (tasa anual equivalente, or annual equivalent rate) is your total return over a year, including the interest you earn on your interest. It’s higher than your TIN because we pay out your interest every 7 days, and from the next week, that interest earns interest too. This is called compounding.

Your Savings Account has 1 TAE, which combines all your TINs and takes into account how much you save and when you add it. That makes it the best number for comparing your Savings Account with savings accounts at other banks.

Why do ads show a different rate than the bunq app?

Ads show the TAE, and your app shows the TIN. Both numbers displayed across our ads and the app are correct, they just measure different things: 

• The TAE in ads: the highest yearly return you can get, including compounding, which is up to 3.16% 

• The TIN in your app: the rate applied to each part of your balance before compounding, which is  3.11%, 1.61%, or 1.51% depending on your threshold. 

You get 3.16% TAE only when all your money is above your threshold (your highest balance from the previous half-year). If part of your balance is at or below your threshold, your TAE is lower.

What TAE will I get?

Your TAE is up to 3.16%, depending on how much of your balance is above your threshold. You get: 

• 3.16% TAE: if all your money is above your threshold. For example, you're new to bunq, so your threshold is €0, or you've added new money on top of your previous balance.

• 1.54% TAE: Your balance stays at your threshold, so almost all of it earns 1.61% or 1.51% TIN.

• In between: Part of your balance is at or below your threshold, and part is above it.

How do I get the highest TAE?

You get the highest TAE on new money you add above your threshold. Every euro you deposit on top of your previous highest balance earns 3.11% TIN, which comes to 3.16% TAE with weekly payments.

1. Open the bunq app and go to your Savings Account 

2. Tap Add Money 

3. Choose the amount and confirm

Your new money starts earning interest straight away, and your first payment arrives on your next bunq Payday. 

Example TAE calculations. 

These 2 examples show the lowest and highest TAE you can get.

Example 1: 3.16% TAE, when you add new money

The situation: You're new to bunq. You open a Savings Account with €50 on January 1, then deposit €50,000 on July 1.

January to June

You're new, so your threshold is €0 and all your money earns the highest rate.

• Your €50 earns €0.78 at 3.11% TIN

• This is paid as 25 weekly payments of €0.03 (€0.75), plus €0.03 in your first July payment

July to December

Your new threshold is €50.75, your highest balance from January to June. You deposit €50,000.

• The €50.75 up to your threshold earns €0.41 at 1.61% TIN

• The €50,000 deposit, plus the interest added, sits above your threshold, so it earns €789.84 at 3.11% TIN

After 12 months

• Total interest: €791.03

• Final balance: €50,841.03, including €4.33 earned but not yet paid out

Why 3.16% TAE? Almost all your money is above your threshold, so it earns 3.11% TIN. Interest is paid every 7 days and starts earning interest too, so your real yearly return is 3.16% TAE. The TAE takes into account when each deposit was made.

Example 2: 1.54% TAE, when your balance stays the same

The situation: You have €80,000 in your Savings Account all year and don't add any new money. Your threshold is also €80,000.

January to June

• The first €10,000 earns €79.84 at 1.61% TIN

• The next €70,000, up to your threshold, earns €524.16 at 1.51% TIN

• The interest added to your account sits above your threshold, so it earns €4.50 at 3.11% TIN

Total: €608.50. Of this, €588.17 is paid by June 30, and €20.32 arrives in your first July payment 

July to December

Your new threshold is €80,588.17, your highest balance from January to June.

• The first €10,000 earns €81.16 at 1.61% TIN

• The next €70,588.17, up to your threshold, earns €537.32 at 1.51% TIN

• The interest added above your threshold earns €5.01 at 3.11% TIN

After 12 months

• Total interest: €1,231.98

• Final balance: €81,231.98, including €3.42 earned but not yet paid out

Why 1.54% TAE? Almost all your money sits at or below your threshold, so it earns 1.61% or 1.51% TIN. Weekly payments add a little extra, and the small amount of interest above your threshold earns 3.11% TIN. Together, that comes to 1.54% TAE.

All examples use daily interest (365-day year), with payments every 7 days from each example's start date, added to the Savings Account, and no other deposits or withdrawals.