When you are fired, you often receive a severance payment or golden handshake as compensation. Previously, people could not make optimal use of this and most of the money disappeared straight away to the tax authorities. However, it is now possible to store your severance premium in a so-called regular savings account and you can enjoy all the benefits that bank savings entails. Read all about the relationship between bank savings, standing rights and severance pay here.
What is a standing savings account?
A standing savings account is a special savings account where money is stored in a blocked manner. If you are fired from an employer, he or she can deposit the severance payment or golden handshake into this special savings account. Stamrecht is actually the periodic payment of that severance premium. The money in the Stamrecht savings account is exempt from income tax until payment is made. By using bank savings with the special standing savings account, you have a tax advantage compared to a regular savings account.
What is the relationship between bank savings, severance pay and the legal savings account?
Bank savings is a form of saving in which you as a consumer enjoy tax benefits. You do not have to pay tax on the money in the bank savings account while saving. However, you may only use the benefit to either pay off your mortgage or to supplement your income or pension. You may therefore only use the money for specific purposes and not just use it for normal expenses. New since 2010 is that a golden handshake can also be used as a deposit for bank savings, so that you can use your severance payment in an optimal way. In the case of a severance payment, the savings account used to secure the money is called a statutory savings account.
What are the tax benefits of bank savings?
If you choose to have your golden handshake paid out in one go, this has disadvantages. You then have to pay tax on the amount and immediately lose 30 to 50% of the severance payment in taxes. When you block the money by using bank savings, you ensure that you only have to pay tax on the severance payment at a later stage. Only when you have this paid out (periodically) do you actually pay tax. In the meantime, you receive a strong interest on the credit and you actually benefit twice from your (bank) savings.
Where can you open a bank savings account for a golden handshake?
This product is now offered by most banks and larger financial institutions. For example, you can open a bank savings account for severance pay with ABN AMRO, SNS Bank, Rabobank and ING. Insurers also offer this product as well as related annuity insurance. With all providers you can opt for traditional bank savings, but it is also possible to opt for an investment variant. The only difference with this form of bank savings is that the “savings” are invested in shares, investment funds and bonds until the moment of payment. This means you can make a relatively higher return, but the amount of the final payment is slightly less certain than is the case with more secure savings.