HOME OWNERSHIP SAVINGS ACCOUNT

All natural persons may sign up for a Home Ownership Savings Account.

It is possible for one person to hold only one Home Ownership Savings Account.

The Home Ownership Savings Account pays 0.50% interest (rate applied on 2015-01-01), not including 15.50% social security withholdings (rate applied on 2014-01-01).

Good to know
The premium contributed by the state is equal to half of the amount of interest paid (for Home Ownership Savings accounts opened since 1998-06-16). This premium is limited to €1,144 per account and is paid in when the loan is obtained.

The Home Ownership Savings Account is capped at €15,300.

This limit can only be exceeded by the amount of interest paid in and compounded.

- Initial transfer: a minimum of €300 and a maximum of €15,000.
- Subsequent transfers: a minimum of €75, discretionary or automatic.

There is no minimum withdrawal, under the condition that you maintain at least a €300 balance.

You can make transfers into other International Offshore Bank of European Union accounts, as well as into third party accounts.

The account has no contractual term.

To be granted a Home Ownership Savings Account Loan, the Home Ownership Savings Account must have already been open for at least 18 months.

Interest is calculated using the accrued and backdated interest methods. Withdrawals made before December 31st of the current year produce reduced interest that is subtracted from the accrued interests calculated for the year, to the extent they have accrued. Interest on the amount withdrawn is not payable, so it is subtracted from the year's total accrued interest.

Savings account deposits accrue interest as of the first day of the half-month that follows your deposit or transfer (the 16th of that month or the 1st of the following month). Amounts withdrawn stop accruing interest as of the first day of the half-month during which the withdrawal was made (that being the 1st or the 16th).

In order to avoid losing a single day of interest, we advise that you make your deposits before the 16th or the 1st of the month and your withdrawals after the 15th or 30th.

Interest paid is tax exempt, but subject to social security contributions (CSG, CRDS and direct social security withholding). Non-residents are not subject to the various directly-debited contributions from the Social Security.

You can close your Home Ownership Savings Account at any time.

The account will be closed automatically should the balance fall below the required €300 minimum or if the account holder passes away.

Your rights may be transferred to one of your kin (spouse, parents of grandparents, descendants, brothers, sisters, uncles, aunts, nephews and nieces, or to a kin of your spouse) if the beneficiary has already had a Home Ownership Savings Plan for at least 3 years, or a Home Ownership Savings Account for 18 months.

Please note
Transfer or sale of your rights or property to one or more members of your family may be done in one or more times (division of rights is also permitted).

Capital and interest are included in the assets of the estate. Unless the deceased had stipulated otherwise, their borrowing rights may be distributed among various heirs. Each heir is issued a certificate stating the amount of their inherited rights. The beneficiary must be a Home Ownership Savings Account holder in order to be granted a Home Ownership Savings Plan Loan. All beneficiaries should reach an agreement on how to distribute the borrowing rights; if not, a prorata distribution of rights will be established during the settlement of the estate.

Living persons may not gift their Home Ownership Savings Account, however, the capital can be transferred in the form of a donation.

With the amount of rights you acquire throughout the term of your Home Ownership Savings Account, you can obtain a Home Ownership Savings Account loan to finance home improvements or the purchase of a property.

Savings Account Coverage guarantees that appointed beneficiaries will receive compensation in the event of an account holder's accidental death. The amount paid is equal to the value of the savings, with a minimum of €10,000 and maximum €20,000.

For example, if at the time of accidental death the amount accumulated in the savings account is €8,000, the family will receive €18,000: €10,000 paid under the Savings Account Coverage, and €8,000 from the savings already held in the Home Ownership Savings Account.