Many investors are looking for safety and good investments with an acceptable return. Are saving insurances the best product? Are investment diamonds an alternative? Below we take a look at these two types of investment.
Saving accounts: decrease in interest rates and taxation
Recent studies of KBC and Ageas show that, despite the low guaranteed minimum tax, the tak21-savings are on the rise. Legally, an insurer may return up to maximum 2 percent, possibly supplemented by an annual bonus or profit sharing, which depends on the results of the insurer. A number of factors may explain the success of saving insurance products: the even lower interest rates on saving accounts, capital guarantee, protection of the paid-up capital and the turmoil in financial markets.
Not only have the interest rates on saving accounts been taken down in the last years, also the yields guaranteed by insurance companies are declining. An important question is whether such an adjustment is only valid for new premiums, or even for premiums paid in the past. Before closing a saving insurance, it is important to inform about the system the insurer is using, as this can vary by provider.
A saving insurance is withholding tax on income unless the sum of money remains at the account for at least eight years. Despite the fact that a saving insurance is an investment with a favorable tax regime, for each premium deposit 2 percent tax will be deducted.
Are investment diamonds an alternative?
Taking all costs and charges into account, saving insurances are a solution for risk-averse investors. After all, you are sure no capital loss is looming and you invest in the long term.
It is advisable to invest a portion of its assets in the long term and diverse the investment portfolio in a sufficient way. Certainty and long term are the key words when it comes to investment diamonds. Moreover the capital gains generated will not be taxed when reselling.
More information about the advantages of investment diamonds can be found here. Over the past 10 years BAUNAT DIAMONDS has built up an expertise on investment diamonds and rely on a team of professional advisers.
More information regarding our investment diamonds:
- Investment Diamonds: where to start?
- Technology tracks the origin of investment diamonds
- How to choose coloured investment diamonds?
In case you have any questions or in case you would need more information regarding investment diamonds, feel free to contact our investment specialists.