2023-08-22 06:22:32
Savers will be able to subscribe to the new one-year government bondtax-efficient, from Thursday 24 August until 1ᵉʳ September included.
Its net yield will be 2.81%, Finance Minister Vincent Van Peteghem (CD&V) announced on Tuesday morning on Radio 1.
This savings product is launched in order to compete with the banks and encourage them to increase the savings account remuneration more substantially.
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A quick reminder of what you need to know if you are considering subscribing to this product.
1/ What is a State bond?
With a government bond, you are lending money to the government. You are remunerated via an annual coupon, subject to a withholding tax of 30%. You have the right to resell your government bond on the secondary market, but its liquidity is rather uncertain.
The State issues such bonds every three months, with different maturities (minimum three years). The “Van Peteghem voucher” has a shorter maturity – one year – and a reduced withholding tax of 15%.
2/ What is its yield?
The gross yield of the one-year State note will be 3.30%, which gives, following withholding tax of 15%, a net yield of 2.81%.
The rate of 2.7% net (therefore taking into account the 15% withholding tax) as announced by the Minister remains possible. The commission is 0.30% maximum.
John Deboutte
Debt Agency
As a reminder, the Minister of Finance, Vincent Van Peteghem had announced the rate of 2.71% net at the beginning of the summer while the rate of the Belgian OLO at one year, on the basis of which the rate of the State bond will be determined, was 3.69%. It is currently 3.61%.
In the meantime, the commission rate, originally announced at 0.50%, has been revised downwards. This commission is the result of a negotiation between the investment establishments and the Debt Agency. This resulted in a fluctuation between a minimum of 0.1% and a maximum of 0.3% from an elapsed volume of 150 million euros. This percentage is paid to the banks a posteriori but the Debt Agency deducts a forecast of these costs upstream to determine the gross coupon of the government bond.
3/ Is it more attractive than other savings products?
Currently, the Santander Vision Max savings account offers a rate of 2.5%, the MeDirect Fidelity Savings account 2.30% and the ING Tempo savings account 2.25%. This is the top 3 of the best savings accounts currently.
The State bond therefore competes with them, even if the savings account a priori offers more flexibility than the government bond. In fact, you can withdraw your money at any time from a savings account and this possibility is rather comfortable. Except that the “high” yield of the best savings accounts is in fact largely composed of the loyalty bonus acquired if your savings remain… one year in your account.
“The minimum subscription amount is 100 euros, there is no maximum.”
John Deboutte
Debt Agency
Especially since the champion of savings, Santander, offers this rate only for deposits between 125,000 and 200,000 euros. And at ING, Tempo savings are limited to 500 euros per month.
As to one-year term accounts, the Deutsche Bank account offers 3.43% (2.4% net following withholding tax of 30%) for a minimum amount of 100,000 euros. This is the MeDirect account that offers the best rate with no minimum deposit: 2.86% (2.002% net).
The good Van Peteghem therefore remains favored by its reduced prepayment.
4/ How to subscribe?
There are two ways: either through a bank (until September 1 inclusive), either directly via the website of the debt agency (until August 31 inclusive). The State note will be available from ABN AMRO, Degroof Petercam, Belfius, Beobank, BNP Paribas Fortis, Bpost Bank, Crelan, Deutsche Bank, ING Belgium, KBC, Keytrade, Leleux, Van De Put & Co, and VDK Bank.
Attention, if you have to open a securities account in a bank, you are likely to have to pay childcare costs. BNP Paribas Fortis, KBC, ING Belgium and Belfius however, indicated that they would not charge custody fees for government bonds.
According to a press release from the Minister of Finance, more and more people are opting for direct subscription via the website of the Federal Debt Agency to benefit from free management through the ledger service. In the last broadcast, in June this year, it was 21.1% of total subscriptionss.
The minimum amount is of 100 euros, there is no maximum.
5/ Should we hurry?
Even if the State voucher is a massive success, “people can rest easy, there will be no early closing“says Jean Deboutte.
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