Home Purchase Savings Account
What is the Home Purchase Savings Account?
Do you have plans for your future in Belgium? Perhaps you intend to buy or renovate a home here? Or do you just want to set some money aside for a few years? In that case, you should select the Home Purchase Savings Account. You decide for yourself when and how much to save, with a maximum of EUR 6,000 per calendar year. Besides, your savings are not blocked, you can access it immediately when needed.
How does this free savings account work?
- Save up to EUR 6,000 per calendar year.
- Make deposits whenever it suits you.
- Transfer money to another BNP Paribas Fortis account in your name or the name of your child, parent or partner (for married or legally cohabiting couples).
Opening or terminating a savings account is free of charge. There are also no management fees or monthly contributions. We do charge you for potential postage costs. A fee of EUR 2.50 is imposed on accounts with a balance of less than EUR 25, with no transactions for ten years and where the holder is at least 24 years old and does not hold any other account with BNP Paribas Fortis.
With an automatic savings plan you automatically save a fixed amount at regular intervals, so you do not forget to save.
If you deposit EUR 500 a month you will save the maximum allowed annual amount for this savings account.
- Once you have set this up, you do not have to think about it any more.
- You decide for yourself when money is to be taken from your account (for example, on the 5th of every month).
- You can stop automatic savings whenever it suits you.
- Request an automatic savings plan.
As a natural person you do not pay tax on interest from your savings account up to a certain amount. In 2018, the tax exemption for interest applies up to EUR 960 per person per year. For a savings account in the name of a married couple or civil union, the exemption applies to twice this amount (EUR 1,920). What if you receive more interest than the exempt amount? Then the bank withholds 15% tax (withholding tax) on the part that is not exempt.
Do you have multiple savings accounts?
The bank applies the exemption separately for each savings account. Do you hold various savings accounts (for example, for yourself and for your underage children) and receive more interest than the exempt amount of EUR 960? Then you must include the amount of interest you have received above the exempt amount in your tax return yourself. A 15% withholding tax will be deducted from this amount.
Receive this tax break as a non-resident
You also receive this tax exemption if you are non-resident (or a natural person with an equal status to a non-resident, such as members of European or international institutions). The bank will then ask you to sign a standard certificate (certificate of exemption from withholding tax). In this you declare, among other things, that you are not resident in Belgium and that your interest arises from your private property.
Does your country have an agreement with Belgium to avoid double taxation? Do you meet the conditions of that agreement? Also in this case you will benefit from tax redemption or reduced tax on your interest.
Do you have any questions about this? Please feel free to contact us.
How much interest do you receive?
- 0,01% basic interest rate.
- 0,20% loyalty premium.
Your interest rates are expressed in gross annual percentages. They may fluctuate depending on market conditions. We report any change to you on your next account statement. A savings account can never be negative, so you can never be charged interest.
What is the significance of the basic interest rate?
You receive the basic interest rate for any amount that you deposit in your savings account. Your deposit accrues interest for each day that it is in your account (at the latest from the calendar day following the deposit). You receive the basic interest annually on 1 January (or upon termination of your account). The basic interest rate is not guaranteed. It can fluctuate depending on market conditions.
What is the significance of the loyalty premium?
You receive the loyalty premium for every deposit that remains in your savings account for twelve consecutive months. The loyalty premium also earns interest at the basic rate. You receive loyalty premiums on the first day after the quarter in which the premium has been earned (on 1 January, 1 April, 1 July, 1 October or upon termination of the account).
The loyalty premium is guaranteed for the recruitment period. What does this mean? Suppose you deposit EUR 100 in your savings account on 30 March 2017. Then, twelve months later, on 1 April 2018, you would receive the loyalty premium on the EUR 100 based on the 30 March 2017 rate. It makes no difference if the loyalty premium has changed in the meantime.
Data exchange with your home country
The new OECD CRS regulation
To prevent tax evasion, the OECD has proposed an international guideline for sharing bank data between different countries. This guideline is called the Common Reporting Standard (CRS) and applies from 2016 onward. Belgium and some 50 other countries have signed the agreement.
According to this agreement the bank shares data of foreign customers with the country where they are liable for tax. This includes the balance in your savings account and the derived interest.
Income and balances for 2016 will be reported in accordance with the CRS for the first time in 2017. Income for 2015 will be reported in 2016 for the last time in accordance with the transitional provisions of the European Savings Directive (the predecessor of the CRS).
FATCA, the regulations for US persons
In 2016, US persons will be reported in accordance with the FACTA provisions and the CRS. FACTA (Foreign Account Tax Compliance Act) is an agreement to exchange data on American tax subjects with the American Government.
Do you have any questions about this? Please feel free to contact us.
Want to know more?
Make sure you read the document Essential information for savers (pdf) before opening a savings account.
- Complaints can be submitted to BNP Paribas Fortis SA/NV Complaints Management (JQABD), Montagne du Parc 3, B-1000 Brussel or to AG Insurance SA/NV Complaints Management, Boulevard Emile Jacqmainlaan 53, B-1000 Brussels, or by e-mail to firstname.lastname@example.org or on +32 (0)2 664 02 00
- If you are not satisfied with the solution proposed by BNP Paribas Fortis, you may refer the dispute in writing to the Ombudsman for Insurances, De Meeûssquare 35, B-1000 Brussels, www.ombudsman.as or by e-mail to email@example.com.
In case of bankruptcy or risk of bankruptcy of the concerned financial institution, the saver risks to lose his savings. He may be submitted to a diminishment/conversion in shares (bail-in) of the claim the saver has on the financial institution, for the amount that exceeds the saving deposit guarantee of EUR 100,000.
The Home Purchase Savings Account is a regulated savings account marketed by BNP Paribas Fortis SA/NV, Montagne du Parc/Warandeberg 3, B-1000 Brussel.
Intermediary:BNP Paribas Fortis SA/NV, Montagne du Parc/Warandeberg 3, B-1000 Brussels – Brussels Register of Companies – VAT No. BE 0403.199.702, is registered under this number with the FSMA, Rue du Congrès/Congresstraat 12-14, B-1000 Brussels, and acts as an associated agent on commission for AG Insurance SA/NV. BNP Paribas Fortis SA/NV holds more than 10% of the shares in AG Insurance SA/NV.
AG Insurance SA/NV – Boulevard E. Jacqmainlaan/Jacqmainlaan 53, B-1000 Brussels – Brussels Register of Companies – VAT No. BE 0404.494.849 – www.aginsurance.be - Insurance company authorised under code 0079, under the supervision of the National Bank of Belgium, Boulevard de Berlaimont/De Berlaimontlaan 14, 1000 Brussels.