Malta Savings Interest Guide 2026
Understanding compound interest and withholding tax on your savings.
Understanding Compound Interest
Compound interest is interest calculated on both the initial principal and accumulated interest. The formula is:
Where:
- A = Final amount
- P = Principal (initial deposit)
- r = Annual interest rate
- n = Compounding frequency per year
- t = Time in years
15% Withholding Tax
Final Withholding Tax
In Malta, interest income from bank deposits is subject to a 15% final withholding tax. This is deducted automatically by the bank.
Key points about the 15% withholding tax:
- Tax is deducted at source by the bank
- No need to declare in your annual tax return
- Applies to Malta tax residents
- Non-residents may have different rates
Current Savings Rates
Savings account interest rates in Malta vary based on:
- Account Type: Regular savings, fixed-term, notice accounts
- Deposit Amount: Higher balances may earn better rates
- Term Length: Longer fixed terms typically offer higher rates
As of 2026, typical savings rates range from 1% to 4% depending on the account type.
Maximizing Your Savings
Smart Savings Tips
- • Compare rates across different banks
- • Consider fixed-term deposits for better rates
- • Set up automatic monthly contributions
- • Take advantage of compound interest by starting early
Calculate Your Savings Growth
See how your savings will grow with compound interest.
Try Savings CalculatorMalta Calculator Editorial Team
Financial Content Specialists | Malta Tax & Employment Experts
Our team specializes in Maltese tax law, social security contributions, and employment regulations. All content is reviewed against official sources from the Malta Commissioner for Revenue and the Department of Social Security.
Official Sources
Data verified as of 1 January 2026. Rates and thresholds are subject to change based on Malta government budget announcements.
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the 15% withholding tax on interest is something most people dont think about. the compound interest calculator really helps show the actual returns after tax 📊
Interest rates in Malta are finally going up a bit which is nice for savers. This guide helped me compare different options. Ended up opening a fixed deposit at BOV.
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