Cash investments categorized as ‘cash equivalents’ (quickly liquidated and capital-guaranteed) such as deposits, term accounts, and interest-bearing accounts, yield greater returns in France than in Belgium. Understanding the underlying reasons behind this discrepancy is essential for making informed and secure investment decisions.
And no, this disparity is not attributable to higher credit quality among Belgian banks:
| Top 4 Belgium | Top 4 France |
| BNP PARIBAS FORTIS (S&P Rating A+) | BNP PARIBAS (S&P Rating A+) |
| BELFIUS BANK (S&P Rating A) | GROUP CREDIT AGRICOLE (S&P Rating A+) |
| KBC GROUP (S&P Rating A-) | GROUP BPCE / NATIXIS (S&P Rating A+) |
| ING BELGIUM (S&P Rating A-) | SOCIETE GENERALE (S&P Rating A) |
Also, it’s not because the deposits of French banks are riskier:
This pertains to the identical deposit system employed by Belgian banks. Both Belgian and French financial institutions contribute to the Deposit Guarantee Fund. Moreover, French banks commonly offer a clause for early repayment at the depositor’s discretion, facilitating the maintenance of high yields over a 5-year period while retaining the option to withdraw funds within 32 days without incurring in any penalties or fees.
1st Reason: The Taxes! Yes, it can happen that there are more taxes in Belgium than in France
Belgian financial institutions are subject to a 0.15% tax on the remuneration of deposits within Belgium. Consequently, under analogous circumstances, when a French bank offers a 4% interest rate, the Belgian bank is compelled to remit a 0.15% tax, thereby extending a 3.85% rate to its client. In a 100 million euros deposit, this represents 150,000 euros per year.
2nd Reason: The banks of certain French groups are composed of regional banks
Banks within certain French groups, such as Crédit Agricole, Crédit Mutuel, or Group BPCE, comprise regional entities that autonomously manage their liquidity requirements. Consequently, certain regions, owing to substantial credit volumes or particular exigencies, may find it advantageous to provide yield bonuses on term deposits.
Take advantage of this opportunity! Contact Fintis to benefit from exceptional offers
- Subscribe to a floating rate at 3-Months Euribor + 0.40% with funds available within 32 days.
- Secure a fixed rate of 3.55% for the next 5 years (equivalent to 3-Months Euribor + 0.80%), while retaining the option to withdraw funds within 32 days without incurring any fees or penalties. This option is particularly advantageous given the anticipated rate decreases.
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