Not all savings products are equal. And if you are looking to earn 1000 euros net over one year, certain investments will require much less initial capital than others.
When it comes to your savings, the devil is in the details. A few tenths of difference in yield, fees or taxes can result in a saving effort of several tens of thousands of euros additional for a strictly identical gain.
In order to generate a net profit of 1000 euros over 1 year, you will have to, for example, invest 40000 euros on life insurance if you opt for an average euro fund, versus only 22222 euros if you select one of the most efficient contracts.
The amount invested to obtain your 1000 euros will also depend on the level of risk that you are prepared to take and the liquidity of the investments for which you opt. In general, the riskier an investment, or the less liquid it is, the higher its potential return will be.
Invest in real estate from €1,000. OUR rankings of the best SCPIs
Bank books: 42,644 euros
Over the past 16 months, the European Central Bank (ECB) has raised its rates 10 consecutive times in an attempt to stem inflation. Bad news for real estate loan rates. But excellent news for certain savings products.
start with bank accounts which are becoming attractive again. These booklets have several advantages: your funds are protected by the FGDR up to 100,000 eurosyou have no risk of capital loss, and your money is accessible at any time.
On the tax side, the interest on super savings accounts is subject to a flat tax of 30%. The rates of these booklets can today reach 2.5% even 3%. And some brands offer boost rates of up to 5.5% over a few months.
At the moment, the Renault Banque Zesto Booklet offers, for example, a boost rate 4.5% for 3 months then 2.9% beyond. To obtain 1000 euros of interest net of taxes with this investment, you will have to invest 43029 euros.
Another example: if you wish to generate 1000 euros of interest over 1 year with the savings account of the online savings platform Cashbee, remunerated 4% for 4 months then 3% beyond that, you will have to invest 42644 euros. In both cases, this is an indicative calculation because the rate of bank accounts is regularly revised to maintain market conditions.
Booklet: comparison of offers on the best bank books
Term accounts: 36,166 euros
The remuneration of term accounts (CAT) is fixed upon subscription. And the latter varies depending on the duration for which you agree to immobilize your funds. The longer your money is locked up, the more attractive the returns served.
This forgotten investment has recently regained all its splendor thanks to the rise in key ECB rates. Just like savings accounts, term accounts have the advantage of being a risk-free investment, because your capital is guaranteed by the FGDR up to 100,000 euros.
CATs also have the advantage of retaining a certain degree of liquidity, since in the event of an emergency, your funds can be released within a few weeks. However, if you withdraw your funds before chance, you will incur a penalty.
Here again, interest is subject to flat tax. Either 12.8% taxes and 17.2% social deductions. BoursoBank’s 1-year CAT is profitable 3%. If you want to pocket 1000 euros net with this investment, you will therefore have to deposit 47619 euros.
However, some players offer even more attractive rates. This is particularly the case with Raisin, which offers a CAT distributed by Klarna Bank. The latter reports 3.95% over 12 months. To earn 1000 euros in interest, you must invest 36,166 euros.
Term account: operation and comparison
The stock savings plan: 14,405 euros
The stock savings plan (PEA) allows you to invest in the financial markets with lower taxes. If you keep your PEA for 5 years, your earnings are tax exempt. However, you remain liable for social security contributions (17.2%).
This investment is significantly more risky than the previous ones: if you invest in an ETF, that is to say an index fund, or in a basket of stocks selected by you, and the price of these assets falls, you can lose all or part of your initial investment.
In return, the potential returns are higher. For example: the CAC40 GR, which corresponds to the flagship index of the Parisian market but taking into account dividends paid to shareholders, increased by 8.4% per year over the period 2011-2021.
Past performance is no indication of future performance, but if you place an order 14449 euros on a BoursoBank PEA of more than 5 years with brokerage fees of 0.5%on a CAC40 GR ETF which yields 8.4% per year, you could pocket 1000 euros.
Better yet: if you invest via an open PEA at Fortuneo, your brokerage fees will be lower (0.2%). In this scenario, a bet 14405 euros could be enough for you to generate a gain of 1000 euros net of tax over 1 year.
Stock market: securities account or PEA, how to make the right choice?
SCPIs: 26,903 euros
Another option: real estate investment companies (SCPI). The principle? You buy shares in a real estate fund. The latter invests in real estate, rents it out, then pays you part of the rent collected.
In recent months, SCPIs have caused a lot of ink to flow. The real estate sector is indeed going through a zone of turbulence following the meteoric rise in interest rates. However, SCPIs remain an interesting option for a long-term investment.
During the first half of 2023, the returns served by SCPIs rise as follows: 4.33% on average, according to estimates from France SCPI. And some SCPIs, like Iroko Zen, could do well, with announced returns 7%.
From a tax perspective, the returns generated by your SCPI are subject to income tax, to which are added social security contributions (17.2%). If you are in the bracket 30%your winnings will therefore be taxed 47.2%. Unless you benefit from the micro-property regime.
In these conditions, you will need to invest 43739 euros to obtain an annual profit of 1000 euros if your SCPI brings you 4.33%And 26903 euros if your SCPI provides a return of 7.04%like Iroko Zen last year.
SCPI: What yield? How to invest? Our advices
Euro funds: 22,222 euros
Euro funds are also recovering with the rise in rates. The average return on this investment is expected around 2.5% in 2023. And the best performing funds could serve up to 4.5% net of fees.
Another strong point of euro funds: the capital invested in these funds is 100% guaranteed. In other words, you are sure not to lose your initial investment. Without forgetting that the taxation of this investment is very attractive.
In fact, if you have had a contract open for more than 8 years and the total of your premiums does not exceed 150,000 eurosyour winnings are subject to a flat-rate deduction of 7.5%to which are added 17.2% social deductions.
In the event of redemption, you also benefit from a reduction of 4600 euros for a single person or 9200 euros if you are in a relationship. Result? If you want to earn 1000 euros net, you will have to invest 40,000 euros on an interest-bearing fund 2.5%And 22222 euros if your contract provides a return of 4.5%.
Compare the best life insurance offers
In summary
In the examples cited, to obtain a return of 1000 euros net over 1 year, you must invest:
- 42,644 euros on bank books This investment is the least profitable, but it is also the most liquid and the least risky.
- 36,166 euros on term accounts Another risk-free investment, more profitable than savings accounts, but your funds are less available.
- 26,903 euros on SCPsI This investment presents a risk of capital loss and a low level of liquidity, but it is one of the most profitable.
- 22222 euros on euro funds A risk-free, fairly liquid investment, which benefits from attractive taxation for contracts over 8 years old.
- 14,804 euros on the PEA It is by far the riskiest investment, but it is also the one that can offer you the best returns.