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More details about High Fidelity savings account
What are the drawbacks of a High Fidelity savings account?
The basic interest of 0,01% is earned from the very first day. But the fidelity premium of 0,15% is earned after 12 months for the money that has remained in your Keytrade High Fidelity savings account for a whole year.
If you are not sure that you can do without your savings for a whole year or more, then a savings account with a high fidelity premium is not for you. If you were to move some money from your savings account to another account, you would automatically lose the fidelity premium for the amount transferred. Unplanned expenses, such as a new car or an exotic holiday, will often mean that you need to take out some of your savings.
If the interest rates rise in the course of a year, the basic interest rates for the "classic savings accounts", such as Keytrade Azur, will also rise. You may then be tempted to move your savings to your Keytrade Azur account. However, by doing this you would also lose the accrued fidelity premium, and your ultimate return will be less than if you had left your savings in the Keytrade Azur account.
Savings that you actively use (to pay for unplanned expenses or as a suspense account between two stock market transactions) are best left in your Keytrade Azur account. The higher interest rate on the Azur account allows you to actively use your savings and still enjoy a decent return.
Who can benefit from a High Fidelity savings account?
To benefit from a High Fidelity savings account, you will have to:
- Be a Keytrade Bank customer - Have a current account
Keytrade Bank limits the number of High Fidelity savings accounts to 1 per available current account.
How do I open a High Fidelity savings account?
The High Fidelity savings account can only be opened online. If you are a customer of Keytrade Bank and have a current account, you can log into the secure section of the site to open a High Fidelity savings account.
Can I deposit savings directly into the High Fidelity savings account?
Yes, you can deposit savings directly into the High Fidelity savings account.
Is my fidelity premium guaranteed?
Since the amended Royal Decree on regulated savings accounts came into force on 1 April 2009, the return on a defiscalised savings account comprises a basic interest component and a fidelity premium. The basic interest depends on the market interest rate and is therefore variable. The fidelity premium is calculated based on the basic interest rate (a minimum of 25% of the basic interest rate offered and a maximum of 50% of the maximum basic interest rate), and is therefore also variable. The fidelity premium is awarded for any sum of money that has remained in the account for 12 consecutive months. The fidelity premium in force at the time of deposit or at the start of a new fidelity period remains in force for the entire fidelity period.
How much withholding tax will I have to pay?
For regulated (defiscalised) savings accounts, you will pay 15% withholding tax on any interest earned in excess of 990EUR (income 2020).
In accordance with current tax legislation on defiscalised savings accounts, the first 990EUR of interest is exempt from withholding tax, as long as you are a natural person and resident of Belgium. This exemption applies per year and per taxpayer. Accounts held by married couples or legally recognised cohabiting couples can benefit from a double exemption (2x 990EUR in interest). If withholding tax has not already been withheld, any interest earned in excess of the exempt amount per taxpayer must be declared in your annual tax return. For example, if a taxpayer holds four different savings account (either individually or jointly) with the same bank or with different banks, any cumulative interest in excess of the exempt amount of 990EUR will have to be declared in his/her tax return.
When is the interest deposited in the account?
The basic interest rate on savings accounts is paid on January 1st of each year. The fidelity premium is paid on the savings account on the first business day of the quarter following the acquisition date: January 1st , April 1st , July 1st , October 1st. For example, if you deposit savings in your High Fidelity savings account on 15/02/2013, you will earn your fidelity premium on February 15/02/2014. You will receive the basic interest on a pro rata basis. The fidelity premium, which is acquired on the 15/02/2014, will be deposited on your High Fidelity savings account on 15/04/2014.