What are your investment alternatives when your state note funds are released?
If you invested in the Belgian state note last summer, your funds – including the interest earned – will be released on 4 September. With that in mind, KBC has a number of smart investment alternatives lined up for putting those freed-up funds back to work for you. Read on to find out more.
Good to know: even if you haven’t invested in a state note, the alternatives listed below are always worth considering. If you’re planning to set aside some money in the near future, now’s the time to think about your options: invest in the new state note or spread your money across different investments?
Question 1: what’s your time frame?
The first thing you need to think about is for how long you can do without your money. Perhaps you’ll need some of it for that big trip you’ve got planned later this year or as a contingency should something unexpected happen, like your washing machine suddenly breaking down. To cover these kinds of expenses, we recommend keeping at least a few months’ pay in your savings account.
Question 2: what level of security do you need?
If you have enough money in your savings account, a combination of saving and investing might be an interesting option for you. One basic rule of investment is that the greater the risk you take, the greater the potential return. However, the chances are that you might also like to know the return on your investment upfront. In that case, the following options will interest you:
- A time deposit account allows you to lock away money for a period of your choosing. This could be a few months or several years, after which you get your money back plus interest at a fixed rate.
- When you buy a bond, you are basically lending money to a company or a government and receiving interest in return. The state note is, in fact, a type of government bond. It can be worthwhile comparing the maturities, risks and returns of state notes with those of corporate bonds.
- Savings-linked life insurance products (class-21 products) also have varying maturities and offer guaranteed interest rates, as well as a potential profit share and the option to designate a beneficiary who will receive your funds should you die within the term of the insurance.
Question 3: how about a little more (return)?
An easy and accessible way to start investing is with an investment plan, where you invest a fixed amount each month (for instance, 25 euros). While your capital and returns are not guaranteed, by investing very gradually over time you’re less vulnerable to stock market volatility because you invest each month regardless of whether the market is up or down.
If you’d prefer to invest a specific amount all at once, you have many different investment funds to choose from. If you’re looking to invest with minimum risk, you can put your money into a fund that offers capital protection and if you want to invest in a specific sector, you can consider thematic investing. Whichever type you choose, you can always have an expert manage your funds.
If you prefer to take charge of your own investments, KBC’s Bolero investment platform is just what you need. Bolero lets you buy shares, ETFs and a range of other financial products, all from the comfort of your smartphone or laptop.
Put your money – and KBC – to work
Wondering whether to split your money between a savings account and a time deposit account, combine an investment plan with a bond investment or go for another investment that might be better suited to you? Our experts will be happy to examine the options with you. Because when it comes to investing, there’s no one-size-fits-all approach.
View our products and services online, call KBC Live or schedule an appointment for no-obligation personal advice.
