Crédit Agricole changes Savings Account Plus interest rates after just two weeks

Crédit Agricole is changing the interest rates on its non-regulated Savings Account Plus. The adjustment is remarkable, as the bank entered the Belgian savings market just two weeks ago. The net base interest rate is being reduced from 1.19% to 0.95%, while the net loyalty bonus is being significantly increased from 0.35% to 0.95%. These are net interest rates after deduction of 30% withholding tax.

30% withholding tax

The savings account is non-regulated, meaning that 30% withholding tax is due on interest earned from the very first euro. The new gross interest rates on the Savings Account Plus are 0.95% base interest and 0.95% loyalty bonus. Crédit Agricole Savings does not deduct withholding tax itself. Customers must therefore declare the interest earned in their Belgian income tax return.

Loyalty bonus is not locked in

The interest rate applied to the loyalty bonus works differently from that of a traditional regulated savings account. With a regulated savings account, the loyalty bonus rate is locked in for 12 months when a deposit is made. Even if the bank changes the loyalty bonus rate during that period, the interest earned on that deposit remains unaffected. This is not the case with Savings Account Plus. There is no rate-locking mechanism. The applicable loyalty bonus rate can change at any time, with changes taking immediate effect on future interest accruals. This means that an increase or decrease in the loyalty bonus rate will also affect the interest earned during an ongoing 12-month period.

Accrued interest is paid quarterly.

31-day notice period

Customers wishing to withdraw money from their savings account must observe a 31-day notice period. The amounts requested for withdrawal are credited to the customer’s Crédit Agricole Savings current account 31 days after the withdrawal request. Both the current account and the savings account are free of charge.

Crédit Agricole Savings

Crédit Agricole Savings is a brand of the French Crédit Agricole Group. In addition to Belgium, the brand also offers online savings products in Germany and the Netherlands. As the account is held in France, Belgian residents must also declare it as a foreign bank account in their Belgian tax return. Deposits are protected up to €100,000 under the French deposit guarantee scheme.