Savings scheme run could prove costly

17th November 2011, Comments 0 comments

There is a run on Dutch save-as-you-earn savings schemes as employees try to benefit from tax breaks due to be scrapped in the New Year. The number of people who have opened a save-as-you-earn account has mushroomed in recent weeks.

The Rabobank reports that 21,000 accounts were opened in the first two weeks of November compared to just 1500 this time last year. At ABN Amro, this figure had shot up to 10,000. ING received almost 10,000 new custombers during this period.

On Wednesday evening, MPs voted out plans by Deputy Finance Minister Frans Weekers to prevent people from opening new save-as-you-earn accounts. The scheme is due to stop at the end of this year.

Under the scheme, employees can save more than 600 euros of their gross salary tax free. The FNV recently called on employees to deposit this amount before the scheme is scrapped on 1 January. The savings run could cost the treasury tens of thousands of euros.

© Radio Netherlands Worldwide

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