Does Beobank’s higher term-deposit interest beat Belgium’s new state bonds?

Beobank’s published euro rates, valid since 3 August, include 2.40% gross a year for a non-renewable 12-month term deposit, 2.50% for 18 months and 2.80% for 36 months. After Belgium’s 30% withholding tax

The bank says the agreed rate is fixed for the full term. That certainty is the attraction: the return does not fall if market rates decline. The trade-off is access. Beobank states that early closure is exceptional, requires its agreement and can trigger a breakage charge. A term deposit must also be connected to an eligible Beobank current, savings or Money Market account in the same currency and at the same branch. Any charges on that linked account should therefore enter the comparison.

Dutch-speaking customers will encounter the term “termijnrekening”; the French pages use “compte à terme”. Beobank publishes both Dutch and French product information, and a customer may ask a branch for contractual documents in the language in which the service is offered. This is a bank product, so opening it does not involve a commune or gemeente, a regional portal or a residence form. Identification and customer-acceptance checks remain part of the bank’s procedure, which may matter to newcomers whose tax residence or documentation spans more than one country.

The Federal Debt Agency announced on 24 August that Belgium’s forthcoming one-year state bond will pay 2.75% gross, while the ten-year bond will pay 3.70%. Both are issued at 100% of nominal value. At the current 30% withholding-tax rate, that is 1.925% net for one year and 2.59% net annually for ten years, as KBC’s issue information confirms.

On the displayed figures alone, Beobank’s 12-month deposit at 1.68% net is below the one-year state bond’s 1.925%. On €10,000 held for a full year, that is approximately €168 net at Beobank against €192.50 from the state bond—a difference of €24.50 before any account or transaction costs. This is an illustration, not a complete market ranking: Beobank’s rates can depend on maturity, amount and subscription date, while other banks may offer different terms.

The maturities also need an honest match. Comparing Beobank’s 36-month rate with a ten-year state bond is not like-for-like. Ten years brings a higher advertised return but a much longer commitment and greater sensitivity to market rates if the bond is sold early. Test-Aankoop notes that a state bond’s market value can fall when interest rates rise; repayment at nominal value is assured only when it is held to maturity, subject to the Belgian state meeting its obligations.

Subscription for the September state bonds runs through placing institutions from 26 August to 3 September. Direct subscriptions through the federal Ledger Service, the “Dienst van de Grootboeken” or “Service des Grands-Livres”, close on 2 September, with funds due by 3 September. The official details are available through the Federal Debt Agency and Belgium’s federal news portal in Dutch and French.

First, keep an accessible emergency reserve. A regulated savings account generally allows withdrawals, whereas money in a term deposit is contractually immobilised and a bond sold before maturity may fetch less than its face value.

Second, compare annual net yields for exactly the same period. Belgium’s FPS Finance, or FOD Financiën/SPF Finances, says the standard withholding-tax rate on movable income is 30%. Banks normally deduct that tax at source from term-deposit interest. The September state bonds are also subject to 30%; they do not repeat the exceptional reduced tax treatment attached to the heavily subscribed one-year state bond of 2023.

Third, check all conditions: minimum or maximum investment, linked-account fees, interest-payment date, automatic renewal and early-exit rules. Beobank says deposits of up to 18 months pay interest at maturity, while longer deposits pay it annually. If automatic renewal is selected, the renewed rate will be whatever applies at that later date.

Fourth, verify protection. Belgium’s Guarantee Fund says eligible deposits are covered up to €100,000 per person per institution. That ceiling aggregates current, savings and term accounts held at the same bank; it is not a separate €100,000 allowance for every account. Joint-account balances are allocated between the holders for the calculation. A state bond, by contrast, is a direct claim on the Belgian state rather than a bank deposit covered by the deposit-guarantee scheme.

For expats, Belgian withholding at source may not settle every obligation. Tax residence, dual-residence questions and reporting duties in another country can change the final result. A Belgian commune or gemeente records residence, but it does not decide investment-income taxation; questions belong with FPS Finance, MyMinfin or a qualified cross-border tax adviser.

The broader story is that state bonds continue to exert competitive pressure on banks. The National Bank of Belgium found that the exceptional 2023 issue shifted substantial household money out of bank deposits and increased interest in term accounts. Each new federal issue now gives savers a visible benchmark against which banks must defend their offers.

Beobank’s increase therefore improves the range of fixed-rate choices, but it does not make every maturity the winner. Rates can change for new subscriptions, and the amount raised by the September state bonds will only be known after the subscription period. Savers should watch for further bank responses—and keep the final product sheet they actually sign, because that document, not a headline or comparison page, fixes the return and conditions.