What is the Hello4You Savings Account?
Do you work at weekends or during holidays? Have you just started your first job? If so, congratulations! Soon you will be able to save some money for a dream holiday or a new laptop. This is why we created the Hello4You Savings Account. It includes an interesting basic interest rate, because you probably want to use your money within the year. It is also easy to manage and involves no paperwork. That way you can save easily and securely.
This is a regulated savings account from BNP Paribas Fortis, under Belgian law, with an indefinite duration.
Opening a savings account is free
- it costs nothing to open and close your account;
- no management charges;
- no monthly contributions;
- only postage costs (if any).
An interesting basic interest rate: an immediate advantage
- You will receive a basic interest rate from the first day after the deposit.
- You receive a loyalty premium for any deposit that remains in your account for twelve consecutive months.
- Ideal if you want to withdraw your savings within the year.
How does this savings account work?
With the Hello4You Savings Account you can:
- withdraw cash;
- manage your savings account online, over the phone or at your branch;
- save up to EUR 6,000 per calendar year;
- deposit money whenever it suits you;
- transfer money to one of your BNP Paribas Fortis accounts or an account in the name of your children, parents or partner (for married or legally cohabiting couples);
- purchase securities.
With an automatic savings plan you automatically save a fixed amount at regular intervals (for example, every month). That is useful if you have a specific savings objective in mind. Or just to make sure you do not forget to save.
- Once you have set this up, you do not have to think about it any more.
- You decide for yourself how much money is taken from your account, and how often (for example, EUR 50 on the 5th of every month).
- You can stop automatic savings whenever it suits you.
As a natural person you do not pay tax on interest from your savings account up to a certain amount. In 2016, the tax exemption for interest applies up to EUR 1,880 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 3,760). What if you receive more interest than the exempt amount? 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.
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 1,880? 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?
The interest rate is composed of a basic interest rate and a loyalty premium. Currently, the basic interest rate is 0.50% and the loyalty premium is 0.20% (gross annual rate). They may fluctuate depending on market conditions. We report any change to you on your next account statement. A Hello4You 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 2016. Then, twelve months later, on 1 April 2017, you would receive the loyalty premium on the EUR 100 based on the 30 March 2016 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.
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 Hello4You Savings Account is a regulated savings account, marketed by BNP Paribas Fortis sa/nv, under Belgian law, 3 Warandeberg, 1000 Brussels.
Home Purchase Savings Account
Do you want to save for a house or a flat? Then this BNP Paribas Fortis savings account (under Belgian law) is right for you. Find out more information here.
- for people between 18 and 35 years old
- plans to purchase, build or remodel a property
- save up to EUR 6,000 a year
- regulated savings account