If your company has funds that it does not need for several months or years, it is very much in your interest to opt for a time deposit account. A time deposit account is a relatively secure investment (unless the bank where it is held goes into insolvency). The amount invested is paid out in full at maturity. Plus, apart from certain special accounts, the interest rate will not change over the product’s term.
You should be aware, however, that these surplus assets cannot be withdrawn in the course of that period, i.e. before final maturity. Prior withdrawal is still possible, but carries a penalty.
Your time deposit account should therefore be chosen based on the length of time for which you can go without these funds: whether it’s short or perhaps somewhat longer. In other words, if you opt for a short term, you will not have to do without your money for a prolonged period, but the interest that is generated will obviously be less than that on a longer-term investment. It’s important, therefore, to give careful consideration to your needs.
Belgian investment withholding tax (currently 30%) is still charged
on all interest earned on these accounts. However, some investors may
qualify for an exemption under certain circumstances.