Question 1

What is real yield?

Accepted Answer

Real yield is your actual return after accounting for both taxes and inflation. It represents how much your purchasing power truly grows (or shrinks). For example, a 3% savings account with 28% tax and 2.5% inflation gives a real yield of -0.34% — you earn interest and still lose purchasing power. Real yield = Gross Yield × (1 - Tax Rate) - Inflation Rate.

Question 2

Why is real yield more important than gross yield?

Accepted Answer

Banks advertise gross yields to attract customers, but that's not what you actually earn. Taxes take a significant cut (19-33% in most EU countries), and inflation silently erodes the rest. A high gross yield can still result in negative real returns if taxes and inflation are high. Real yield tells you if your savings are actually growing in purchasing power terms — the only metric that truly matters for long-term wealth preservation.

Question 3

How do you calculate real yield?

Accepted Answer

The formula is simple: Real Yield = (Gross Yield × (1 - Tax Rate)) - Inflation Rate. First, subtract taxes to get your after-tax yield. Then subtract inflation to see if you're gaining or losing purchasing power. Example: 3.5% gross yield, 19% tax, 2.5% inflation → (3.5% × 0.81) - 2.5% = 2.835% - 2.5% = +0.335% real yield. Use our free calculator to compute this instantly for any product.

Question 4

What's the difference between gross yield, net yield, and real yield?

Accepted Answer

Gross yield is the advertised rate before any deductions. Net yield (or after-tax yield) is what you keep after taxes are withheld — this is the money that hits your account. Real yield goes one step further by subtracting inflation, showing whether your money is actually gaining or losing purchasing power. Example: 3% gross → 2.16% net (28% tax) → -0.34% real (2.5% inflation). Only real yield tells you if you're winning or losing.

Question 5

Which European countries have the best real yields in 2026?

Accepted Answer

There is no permanent country leader: real yield depends on the product, fees, the tax rate applied and current local inflation. Use the country comparison for the latest calculations rather than relying on a fixed ranking. A high annualised promotional rate may apply only for a short term or a limited balance; it does not guarantee the same return for a full year. Older unverified offers are excluded from current leader claims, and model estimates are identified separately.

Question 6

How does inflation affect my savings?

Accepted Answer

Inflation erodes the purchasing power of your savings. If inflation is 2.5% per year, you need to earn at least 2.5% after taxes just to maintain your current purchasing power. Anything less means you're effectively losing money — your account balance grows nominally, but buys less than before. This is why many German savers with 2% accounts (26.375% tax, 2.3% inflation) are actually experiencing negative real yields of -0.83%, losing purchasing power every year. Real yield analysis reveals these hidden losses.

Institution / Product	Gross Yield	After Tax	Real Yield	Details
Bono del Estado 10YGovernment Bonds · ES	3.93%	3.18%	-1.82%	Benchmark10-year Spanish government bond, long-term benchmark
iShares € Ultrashort Bond (ERNE)Short-Term Bond ETFs · EU	3.20%	2.52%	-2.48%	Portfolio yield to maturity (YTM) · Verified 2026-10-15Corporate ultrashort bond ETF, not a money market fund. Portfolio YTM before TER, not a guaranteed return. TER 0.09%; duration 0.38 years. Source observation: 2026-10-15; ISIN IE00BCRY6557.
iShares € Govt Bond 0-1yr (IEGE)Short-Term Bond ETFs · EU	2.83%	2.24%	-2.76%	Portfolio yield to maturity (YTM) · Verified 2026-10-15Portfolio YTM before TER, not a guaranteed return. TER 0.07%; duration 0.52 years. Source observation: 2026-10-15; ISIN IE00B3FH7618.
Trade Republic Cash AccountSavings Accounts · ES	2.50%	2.02%	-2.98%	BenchmarkInstant access, variable rate linked to ECB deposit facility; verify account-specific conditions, €100k deposit guarantee per partner bank
Xtrackers EUR Overnight Rate (XEON)Money Market ETFs · EU	2.52%	1.96%	-3.04%	Proxy estimateTER: 0.10%, tracks €STR, accumulating, liquid daily
Palmer Square EUR CLO Senior (PCLD)CLO ETFs · EU	3.79%	2.87%	-2.13%	Model estimateTER: 0.25%, Passive AAA/AA EUR CLO Index, passive management
State Street Blackstone Euro AAA CLO UCITS ETF (ECLO)CLO ETFs · EU	3.74%	2.83%	-2.17%	Model estimateTER: 0.25%, actively managed AAA EUR CLOs, Blackstone Credit sub-advised
Invesco EUR AAA CLO (CLOD)CLO ETFs · EU	3.69%	2.79%	-2.21%	Model estimateTER: 0.25%, AAA-rated EUR CLOs, floating rate
Invesco EUR AAA CLO Acc (CLOA)CLO ETFs · EU	3.69%	2.79%	-2.21%	Model estimateTER: 0.25%, AAA-rated EUR CLOs, accumulating, ISIN: IE000Y2JPPS4
Janus Henderson EUR AAA CLO UCITS ETFCLO ETFs · EU	3.69%	2.79%	-2.21%	Model estimateTER: 0.25%, AAA-rated EUR CLOs, tracked via JCL0
UBS EUR AAA CLO UCITS ETF (CHSJ)CLO ETFs · EU	3.69%	2.76%	-2.24%	Model estimateTER: 0.28%, AAA EUR CLO tranches, semi-annual distribution
iShares € AAA CLO Active (EUCL)CLO ETFs · EU	3.64%	2.75%	-2.25%	Model estimateTER: 0.25%, actively managed AAA CLOs
Bono del Estado 2YGovernment Bonds · ES	3.14%	2.54%	-2.46%	Model estimate2-year Spanish government bond, fixed rate
Letras del Tesoro 12MGovernment Bonds · ES	2.94%	2.38%	-2.62%	Model estimateZero-coupon 12-month Spanish Treasury bill, benchmark asset
Letras del Tesoro 6MGovernment Bonds · ES	2.84%	2.30%	-2.70%	Model estimateZero-coupon 6-month Spanish Treasury bill, sold at discount
Amundi Prime Euro Gov Bonds 0-1YShort-Term Bond ETFs · EU	2.87%	2.28%	-2.72%	Proxy estimateTER: 0.05%, YTM ~2.45%, ultra-short eurozone government bonds
Amundi Smart Overnight Return (CSH2)Money Market ETFs · EU	2.44%	1.90%	-3.10%	Proxy estimateTER: 0.10%, accumulating, liquid daily
Amundi Prime Euro LiquidityMoney Market ETFs · EU	2.44%	1.90%	-3.10%	Proxy estimateTER: 0.10%, distributing, T+1 liquidity
HSBC GIF Euro LiquidityMoney Market ETFs · EU	2.44%	1.90%	-3.10%	Proxy estimateTER: 0.10%, AAA-rated MMF, institutional quality
JPMorgan Euro Liquidity FundMoney Market ETFs · EU	2.44%	1.89%	-3.11%	Proxy estimateTER: 0.11%, government MMF, daily liquidity
Invesco Euro LiquidityMoney Market ETFs · EU	2.44%	1.88%	-3.12%	Proxy estimateTER: 0.12%, accumulating, daily liquidity
Amundi Euro LiquidityMutual Funds · ES	2.44%	1.88%	-3.12%	Proxy estimateTER: 0.12%, T+1 liquidity
HSBC Euro Liquidity FundMutual Funds · EU	2.44%	1.87%	-3.13%	Proxy estimateTER: 0.13%, T+1 liquidity, institutional
BlackRock ICS Euro LiquidityMoney Market ETFs · EU	2.44%	1.85%	-3.15%	Proxy estimateTER: 0.15%, institutional money market fund
Goldman Sachs Euro Liquid ReservesMoney Market ETFs · EU	2.44%	1.85%	-3.15%	Proxy estimateTER: 0.15%, prime MMF, T+1 liquidity, AAA-rated

	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
EU Average	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Spain	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Portugal	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Germany	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
France	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Italy	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Netherlands	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Belgium	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Austria	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Ireland	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Finland	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Greece	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Lithuania	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Estonia	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Latvia	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Slovenia	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs
Slovakia	Savings Accounts	Money Market ETFs	Mutual Funds	Government Bonds	Short-Term Bond ETFs	CLO ETFs

Real Yield Dashboard

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European Fixed Income Analysis — After-Tax Real Returns vs. Inflation

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