Savings insurance returns have reached the 3 percent mark again

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A branch 21 or savings insurance policy provides annual interest that consists of two components. On the one hand, there is the interest that is guaranteed annually on your deposit for a fixed period – usually eight years and one day. On the other hand, a profit share is added annually, which depends on the results of the insurer’s underlying investments.

For both components, 2023 was a much better year than 2022, when interest rates were very low and the stock markets fell. AG Insurance, Belfius and Allianz offer returns of 3 percent for 2023. That level has not been reached since 2014, when the then price breaker AFER offered a global return of 3.2 percent.


The list of insurers that pass the 3 percent mark may become longer in the coming weeks.

The list of insurers that pass the 3 percent mark may become longer in the coming weeks. Several players, including price breakers Patronale and Credimo, have not yet communicated their returns for 2023. The average return of the branch 21 products for which the returns are already known increased from 1.8 percent in 2022 to 2.4 percent in 2023.

No tax benefit

The 3 percent returns at AG Insurance, Allianz and Belfius are offered on non-tax contracts. These are savings insurance policies that have no tax benefit attached to them. The increase in 2023 will be more limited on fiscal contracts, which have generally yielded more than non-fiscal contracts in recent years.


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With tax contracts you can opt for long-term savings or pension savings. For long-term savings, a tax reduction of 30 percent applies to a deposit of a maximum of 2,450 euros (in 2024). For pension savings, a tax reduction of 30 percent applies if you do not deposit more than 1,020 euros. If you deposit between 1,020 and 1,310 euros, a tax reduction of 25 percent applies.

Due to the significantly changed interest rate climate, Argenta has opted for a different way to determine the return for 2023. “We opt for a fixed profit share of 0.2 percent,” it says. This profit sharing is in addition to the guaranteed interest that applied at the time of the deposit. A minimum total return of 1.25 percent and a maximum of 3.75 percent applies. If we only look at recent deposits, the return for the Argenta Flexx tax contract in 2023 was between 1.4 and 2.2 percent (on an annual basis).

Entry and management fees

The branch 21 returns that insurers communicate are gross returns, which do not take costs and taxes into account. The entry costs can vary considerably depending on the insurer or broker. Most insurers also charge management fees on reserves, although these are usually limited to 0.1 to 0.3 percentage points per year.

2%

In tax terms, a premium tax of 2 percent applies to every deposit in a branch 21 product, with the exception of contracts for fiscal pension savings.

In tax terms, a premium tax of 2 percent applies to every deposit in a branch 21 product, with the exception of contracts for fiscal pension savings. Branch 21 products are exempt from withholding tax if a term of at least eight years and one day is chosen.

This term saddles insurers with a limitation. The return they guarantee for that period is subject to a statutory maximum interest rate that is determined annually. Just like last year, the maximum return in 2024 will be 2 percent. To circumvent this maximum, insurers have launched new formulas in recent months in which they guarantee a higher return, but for a period of eight years or less.

Guaranteed interest

Patronale offers the Fix21 product, which guarantees a return of 2.65 percent for eight years. At the end of last year, the guaranteed return on that product was even 3.03 percent. After a 2 percent tax on the premium and the maximum entry costs, a net return of 2.58 percent remained. Please note that the return on that product only consists of the guaranteed interest, there is no profit sharing.

With Belfius Invest Capital Safe, Belfius offers a guaranteed gross return of 2.55 percent for a period of between seven and eight years. In addition to that return, annual profit sharing is possible. At AG Insurance, a guaranteed gross interest rate of 2.5 percent applies for eight years for the Future Invest Bond or AG Invest + contracts. The guarantee applies to a one-off closing premium. Credimo and Athora also offer guaranteed returns that are higher than 2 percent.

The article is in Dutch

Tags: Savings insurance returns reached percent mark

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