by Niels Saelens
published on Friday November 10, 2023 to 17:16 •
5 min read
Savings accounts are once again in the eye of the storm. The competition watchdog BMA recently asked itself whether it would not be better to abolish the fidelity premium, so that it becomes easier to compare savings formulas. But such an intervention could have far-reaching consequences for savers.
Why is this important?Savings accounts have been under fire for some time now. First there was criticism of the low savings rates. The federal government even launched a one-year government bond in September to put pressure on banks to increase savings rates. Now questions are also being asked about the complexity of savings accounts.
Context: According to the BMA, the savings accounts are too complex. The watchdog is particularly targeting the fidelity premium.
- Savers only receive this premium after the money has been in their savings account for twelve consecutive months. Anyone who withdraws their savings deposits early loses the entire premium, which takes a significant bite out of the total return.
- The BMA adds that banks have become very creative with the conditions for such a fidelity premium and the term
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Tags: Abolition fidelity premium consequences