Forward account

A fixed-term deposit (CAT) is a secure bank investment that allows you to grow your capital over a fixed period of time. In exchange for locking up your funds (from 1 month to 10 years), the bank pays you interest at a rate that is known in advance, with a fixed, variable or progressive rate depending on the contract.

What is a term account? 🏦

A term deposit account is a fixed-term savings account opened with a single deposit at the time of subscription. The funds remain locked in until the maturity date, unless withdrawn early (subject to penalties). This type of investment is suitable for both individuals and businesses, and can be opened as a sole or joint account.

Key features of the forward account ✨

• Term: from a minimum of 1 month to 10 years (often 1 to 5 years)

• Deposit: minimum amount set freely by the bank (usually from €1,000), no maximum limit

• Payment: single payment upon opening, no further payments possible

• Interest rate: fixed, variable or progressive (known in advance)

• Interest: paid at maturity or regularly (quarterly, half-yearly, annually)

• Fees: no opening, management or closing fees 🚫

• Early withdrawal: possible but with a reduction in interest

Taxation of forward accounts 📊

Interest earned on a term deposit account is subject to investment income tax:

• A single flat-rate levy (PFU) of 30% (12.8% tax + 17.2% social security contributions), deducted at source.

• Option to opt for the progressive income tax scale.

• Certain taxpayers may request an exemption from advance payments based on their reference taxable income

Advantages ✅

• Capital security: no risk of capital loss 🔒

• Guaranteed return: fixed rate known at the time of subscription

• Flexible term: choice between short- or medium-term investment

• Suitable for reinvestment projects: ideal when waiting to use capital (inheritance, donation, sale of property, etc.)

  👉 Term accounts are therefore an ideal investment for savers seeking security, visibility and simplicity. They are an alternative to traditional bank savings accounts, particularly for funds available in the short or medium term.

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