Beobank will raise interest rates on most of its fixed-term deposit accounts from Wednesday, following the issue of new Belgian state bonds in September and the maturity of back-to-school term accounts.
For a six-month term account, the gross rate at maturity will increase from 1.10% to 1.55%, with the net rate rising from 0.77% to 1.08%.
For a nine-month term, the gross rate will rise from 1.72% to 2.29%, while the net rate will increase from 1.20% to 1.60%.
For 12-month term accounts, the new gross rate will be 3.00%, up from 2.40%, and the net rate will rise from 1.68% to 2.10%.
The same 3.00% gross rate will also apply to term accounts with maturities of 24, 36 and 48 months.
For 18-month term accounts, the gross rate will increase from 2.50% to 3.10%, while the net rate will rise from 1.75% to 2.17%.
Beobank said the increase would place its term accounts among the most competitive on the market.
Kristof Vandenbulcke, the bank’s head of banking and insurance products, said the six-, nine- and 12-month products were particularly well suited to the current investment horizons of retail savers.
He added that the bank remained competitive over medium-term maturities as well, especially for nine- and 10-year products.
The next Belgian state bonds, to be issued in September, will offer a gross return of 2.75% for the one-year bond, equivalent to 1.925% net.
According to an overview published on guide-epargne.be, few banks offer returns matching those of the state bonds.
Online bank MeDirect is one exception, offering a gross rate of 3.20% and a net rate of 2.24% on a one-year term account.
