The KBC banking group announced an increase in interest rates on its 6 and 13-month term accounts on Friday.
The bank is following suit after Belfius, ING and Keytrade previously introduced similar products to compete with the upcoming state bonds due 16 September.
The annual gross rate for term accounts of 6 months length, opened between 4 and 15 September at both KBC and CBC banks, will be 4%, equal to a net 1.41% for the above-mentioned duration after the deduction of withholding tax. Accounts of a 13-month duration opened in the same period will offer a gross rate of 3.8% (2.88% net).
Clients are only able to subscribe using ‘fresh money’, which means using funds that will increase their total assets within the institution.
In addition, KBC has also announced the issuance of one-year certificate bonds with an annual gross coupon of 3.1% (2.17% net), starting on 16 September. The group plans to borrow €1 billion from its clients through this venture.
Earlier in the day, Belfius and Keytrade announced term accounts with respective gross rates of 3.8% and 3.4% beginning 2 September. ING already launched its term account at a gross rate of 3.8% on Monday.
