Intressitulu

Intressitulu is the Estonian term for interest income. It refers to the earnings generated from lending money or from investments that pay interest. This can include interest earned on bank deposits, bonds, loans provided to others, or any other financial instrument where a principal amount is lent out and a return is received in the form of interest payments.

In Estonia, as in most countries, interest income is generally considered taxable. The specific tax rates and regulations governing interest income are determined by the Estonian Tax and Customs Board. Individuals and businesses are typically required to report their interest income in their annual tax declarations. There may be certain exemptions or thresholds below which interest income is not taxed, or is taxed at a reduced rate, depending on the type of income and the source.

For financial institutions, interest income is a primary source of revenue. Banks, for example, earn interest from the loans they issue to customers, which is a fundamental part of their business model. Investors who purchase bonds also receive periodic interest payments, known as coupon payments, until the bond matures. The concept of interest income is fundamental to understanding personal finance, investment strategies, and the broader economy, as it represents the cost of borrowing and the reward for saving or investing.