If I can find a savings account that doesn't earn interest and doesn't come with any sort of bonus, will my savings be tax-free?

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    Please define what you mean with tax free. You always only pay tax on interest, so not having interest means tax free (unless you live in a country with wealth tax). Guess waht - paying part of something is better than not having something. I.e. interest. Or do you mean that money you put into such a saving account is not taxed as income first - well, bad news: interest on the account has no correlation to your income tax. I.e. once you pay tax you can make with the money what you want (also put it into a savings account). Tax free/Deferred Tax schemes notwithstanding. Totally unclear question – TomTom Nov 23 '18 at 7:16

my savings be tax-free

Savings are always tax free. Only the interest earned [if any] needs to be included as income [and combined with other ordinary income] and taxed as per tax brackets.

So if you have an account that generates no interest, there is no additional income to report or tax to pay.

So if you keep 10,000 in savings account. There is no tax on this 10,000. If it generates an interest of say USD 200 a year, then this 200 will be added to your other income and taxed at your bracket between approx. 10% - 40%; i.e. USD 20 to USD 80 in additional taxes.

Essentially one need not search for a savings account that earns 0%; unless you believe that filing taxes is more complicated that earning the additional interest.

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    You can pay no income tax by having no income, but that seems like a rather foolish tradeoff. – David Schwartz Nov 24 '18 at 19:46
  • Most likely, the OP will have to file and pay taxes regardless. The difference is whether they write a 0 or a positive number on the line for taxable interest on the tax form. – chepner Nov 26 '18 at 15:31

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