Keep or withdraw your savings?

On September 15, 2010, people with savings were able to withdraw that money. More than 2 million people who participated in the salary savings scheme in this way were able to take advantage of early withdrawal of the amount they had collected. But leaving it alone also has its advantages. What’s better now? Would you like to keep your savings salary fixed or have the money from your savings salary paid out anyway?

Savings wages are released earlier to stimulate the economy

The government has decided that savings wages will be released earlier to give the economy a boost. The idea is that people who can free up the money will also spend more. However, the conditions of the salary savings scheme are so good that it is interesting to see whether it would not be better to leave it fixed.

What is savings salary?

Employees who participate in the salary savings scheme can have their employers deposit a maximum of 613 euros per year into a blocked account. No wage tax or social security contributions are paid on this money. After 4 years, the amount could be withdrawn tax-free. Moreover, they do not have to pay a yield tax of 1.2 percent for the period that the amount cannot be withdrawn.

How much money is involved in savings wages?

The Central Bureau of Statistics (CBS) has calculated that at the end of 2009, there was an amount of 4.3 billion euros in the various salary savings schemes in the Netherlands.

Withdraw savings wages in the interim

The savings salary could also be withdrawn prematurely before 2010 while retaining the tax benefit (i.e. after, for example, 3 years) if a defined spending goal is linked to the withdrawal. This could be:

  • The purchase of a home
  • Unpaid leave
  • Childcare
  • Study costs

Withdraw savings salary: accrued between 2006 and 2009 and no more than 2,450 euros

This arrangement was briefly abandoned in 2010 because the government wanted to stimulate the economy. In 2010, all participants (including people who have been participating for less than 4 years) could freely withdraw the money and spend it on anything they wanted. However, this concerns savings wages accrued between 2006 and 2009. This also means that a maximum of 2,450 euros can be withdrawn per saver. People who already withdrew money in 2006 that was then released must deduct that amount from the 2,450 euros.

How do you use the released savings wages in 2010?

People who want to withdraw their savings wages prematurely in 2010 must inform their bank themselves. Their boss or their bank must have informed them of this too. Some banks do this via a notification in electronic banking and via the bank statement. They can then unblock the savings salary account via the website (this is the case with Rabobank). The money saved over the years is then deposited into a contra account.

Withdrawing savings wages early is not mandatory

Anyone who does not respond to the question of whether the savings salary should be released earlier simply keeps a savings salary account that remains blocked. It is not mandatory to withdraw the savings salary.

Leave salary savings: the savings remain exempt from capital gains tax

The big advantage of leaving the savings salary is that the amount remains exempt from capital gains tax. But that is only attractive for people who have more assets than EUR 20,661 (per person) or EUR 41,322 for tax partners. Savings holders do not have to do it for the interest. The interest on savings accounts is only between 1.5 and 2.5 percent and therefore does not yield huge amounts.

Transfer savings wages to a regular savings account

People who do not have that much assets (less than 20,661 euros or together 41,322 euros) and have a normal savings account with a higher interest rate can consider transferring their savings to that account where they receive more interest.

Exemption from capital gains tax has already been used

But according to the Consumers’ Association, people who have already used their exemption from capital gains tax often find it cheaper to have a savings account. The account holder who is willing to lock up the money for a longer period of time can in many cases compensate for the loss of the tax benefit with a savings deposit (the money is then locked up with a fixed term and a fixed interest rate).

Should you leave your savings now or not?

People who don’t really know what to do with their accumulated savings can simply leave their money for a while and get their bearings. There is no date attached to the arrangement. The only disadvantage is that some banks require people to withdraw the money before a certain date. So it’s good to keep an eye on that. A number of banks have determined that people must indicate the unblocking of their savings account before December 31, 2010. If they don’t do that, the money won’t be released.