Belgian State Bonds and Tak 21 Rates Rise: Guide for Savers

Belgian savers looking for low-risk investment options have reason to pay attention this week. The Belgian Federal Debt Agency has announced significantly higher yields on new state bonds (staatsbons) issued in June, while major insurers like AG and Federale Verzekering have raised rates on their Tak 21 savings products. With subscriptions now open, the question on every saver’s mind is: which option delivers the best return?

What’s on Offer?

The new state bonds, announced on May 21 by the Federal Debt Agency, offer substantially improved terms compared to the previous March issuance. According to Het Laatste Nieuws, the one-year state bond carries a gross rate of 2.50%, yielding 1.75% net after the 30% withholding tax. The eight-year bond offers 3.30% gross (2.31% net), up from 2.80% gross in March.

On the insurance side, AG raised rates on its Tak 21 products ‘Future Invest Bon’ and ‘AG Invest+’ effective May 23. New customers now receive a guaranteed rate of 3.00% in the first year and 2.75% in subsequent years, up from 2.60%. The AG newsroom stated this move is “in response to the evolution of market rates,” allowing the insurer to offer “an attractive combination of short and long-term returns.” Federale Verzekering has also entered the fray with ‘Vita Invest.2’, a Tak 21 product guaranteeing 2.90% gross through the eighth year.

Costs and Taxes: The Fine Print

While the headline rates are eye-catching, the real returns depend heavily on costs and tax treatment. State bonds are free to enter — there are no entry fees. However, the 30% withholding tax is applied annually to the interest earned.

Tak 21 products, by contrast, carry a 2% premium tax on every deposit, meaning only €98 of every €100 actually goes to work. On top of that, entry fees vary by insurer — up to 2.50% at AG and 1% at Federale Verzekering, as reported by HLN. The key tax advantage, however, is that after eight years and one day, no withholding tax is due on Tak 21 returns.

As Nieuws365 reports, no one-year term deposit accounts currently beat the state bond’s 1.75% net rate. Only three banks match it: MeDirect, Santander Consumer Bank, and BIL. Some savings accounts with restrictions offer higher rates — Santander Vision Max at 2.00% (with a €125,000 minimum) and Keytrade High Fidelity at 1.90%.

Expert Perspectives

Pascal Paepen, HLN’s financial expert, describes a state bond as “one of the safest investments that exist.” For long-term savers, however, he advises looking beyond just the state bond: “Who can miss their money for eight years should look further than just the state bond.” He notes that Tak 21 products are particularly attractive for estate planning, as beneficiaries can be designated directly.

Frank De Mol, analyst at De Belegger, offers a more cautious view. Speaking to Nieuws365, he warned: “The returns are still not high enough to compensate for potential inflation, let alone earn from it.” This means that despite higher nominal rates, savers’ purchasing power may still erode in real terms.

Market Context and Outlook

The rate increases are driven by rising global bond yields, fueled by geopolitical tensions and persistent inflation. The Belgian Planning Bureau expects inflation to eventually moderate, making current rates potentially attractive for locking in.

For savers choosing between the two options, the decision comes down to time horizon and flexibility. State bonds offer easier access to funds before maturity — they can be sold on the secondary market. Tak 21 products, however, carry significant penalties for early withdrawal, including surrender fees and back taxes if cashed out within eight years.

What Should Savers Do?

The current environment presents a genuine opportunity for low-risk savers to secure returns not seen in years. For short-term savers (one year), the state bond is hard to beat given its zero entry costs and competitive net yield. For those with an eight-year horizon, the state bond’s 2.31% net is attractive, but Tak 21 products offer higher guaranteed first-year rates and significant tax advantages for long-term holders.

As always, diversification may be the wisest path. A combination of state bonds for shorter-term needs and Tak 21 insurance for long-term savings and estate planning could offer the best of both worlds. With subscriptions open until June 3 through banks (or June 2 directly via the Federal Debt Agency), Belgian savers have a narrow window to act.