The range of regulated savings accounts on offer has been simplified, based on the agreement reached in 2023 between the Belgian government and the banking sector. The number of types of regulated savings accounts has been reduced, and the vast majority of the accounts that were no longer being marketed but were still held by some customers have been closed. This information comes from an analysis conducted by the Financial Services and Markets Authority (FSMA).
Maximum 4 different types of regulated savings accounts
The agreement reached in 2023 between the government and the banking sector provided that the number of regulated savings accounts that can be offered by a single credit institution (or under one brand name) would be limited to 4 different savings accounts, spread across 3 categories (A, B and C – see below). These 4 types of savings accounts are marketed under different names and/or offer different rate of return formulas for calculating the rate of return.
Two thirds of all banks have had to adapt their offer of regulated savings accounts
Following the agreement, nearly two thirds of all banks had to adapt their offer of regulated savings accounts in order to take into account this limitation and the different categories.
The limitation to 4 types of accounts entered into force on 1 July 2024. As at that date, 28 banks/brands were marketing regulated savings accounts. In all, 83 different formulas for calculating returns are available from banks that have signed on to the agreement:
- 37 formulas in category A. These are the ‘classic’ savings accounts, which offer combinations of a base interest rate and a loyalty premium, without any other conditions;
- 25 formulas in category B. These accounts have conditions relating to the amount deposited; that is, there is a maximum or a minimum amount to be held on the savings account, or a (possibly maximum or minimum) monthly deposit to be made to the savings account;
- 7 formulas in category C, which comprises savings accounts linked to a specific age group (e.g. young people);
- 14 formulas on accounts for rental deposits, or accounts designated as being for a third party. These formulas are not included in the limit of 4 accounts/formulas per institution.
These 83 formulas for calculating returns represent 78 accounts, since 5 banks/brands offer an account comprising 2 different formulas (i.e. the base rate and the loyalty premium differ according to the amount on the account).
Fewer rate of return formulas
Most banks/brands offer fewer formulas than the maximum number provided for in the agreement. It should be noted that only one third of all banks/brands offer customers 4 different formulas for their regulated savings accounts, whereas another third of all banks/brands offer a single regulated savings account with one rate of return formula.
Closure of most accounts that are no longer being marketed
The banks that have signed on to the agreement decided to close the majority of their regulated savings accounts that were no longer being marketed but were still held by some customers. Some of these accounts offered lower returns than the accounts being actively marketed. Savers who held such accounts were offered the one-time opportunity to convert them into another regulated savings account. At present, only 3 savings accounts that are no longer being marketed are still held by customers of banks hat have signed on to the agreement.
New webpages that make it easier to compare the banks’ offers
Another major shift brought about by the entry into force of the agreement was the creation, by all the institutions concerned, of a standardized webpage that provides a uniform overview of the offer of regulated savings accounts by each credit institution active in Belgium. Thanks to this webpage, savers are now able to gain a concise overview of the offer by each institution, and thus to compare more easily the different accounts available on the market.
The FSMA’s savings account comparison tool has already been consulted more than 120,000 times
The returns on regulated savings accounts can also be easily compared thanks to the latest version of the regulated savings account comparison tool available on the www.wikifin.be website. Since it was updated following the new agreement, the comparison tool has already been visited more than 120,000 times.
By way of reminder, there is an interbank mobility service that makes it easy and quick to switch banks. You can find more information on this topic in French and Dutch.
Under the terms of its supervisory powers in respect of savings accounts, the FSMA verifies, among other things, whether the key information documents for savers and advertisements for savings accounts comply with the legislation and regulations in force. Over the past few months, the FSMA has, under the powers conferred upon it, also been actively monitoring the implementation of the provisions of the agreement. In order to facilitate the application of the agreement, the FSMA developed in advance, together with the banking sector, a model for the new standardized webpage. At the beginning of January 2024, the new webpages provided for in the agreement were published by the banks, after approval by the FSMA.