Now that summer is officially in the country, many Belgians are undoubtedly dreaming away of tropical holiday destinations. We give a few tips on how to travel without money worries.
1. Use the correct payment card abroad
If you are planning a trip to a distant destination such as the United States, it is best to check the rates that your bank uses for foreign transactions. Picking up foreign currencies with a regular payment card is much cheaper up to a certain level than with a credit card.
At KBC, for example, it is cheaper to collect a maximum of 110 euros with a bank card. Those who want to collect more should use their credit card. At BNP Paribas Fortis that is from 1,000 euros. The difference lies in the way in which the banks calculate the costs. Paying in foreign currencies is cheaper anyway with a credit card. The banks then only charge an exchange rate commission. Anyone who withdraws their bank card in such cases also pays handling costs. Read more about the costs linked to the payment cards here.
2. Save by choosing the right credit card
When you travel, you don’t have to spend a lot of money on a credit card. If you only want to make payments, you can choose from one of the free credit cards in our country. The Buy Way master card is a good example of this.
If you still want to enjoy a few insurance policies, you can already buy a credit card from 5 euros a year. For example, anyone who opts for Cofidis Mastercard Gold is insured for sudden death or permanent disability up to and including 25,000 euros. In addition, the cardholder is insured up to 25 euros per day in the event of a hospitalization. And that for a maximum of 30 days.
Those who prefer wider protection can opt for one of the more expensive credit cards. A comparison of the Rostov family shows that the Platinum American Express offers the widest insurance package. Although this extensive coverage is accompanied by a substantial price tag: 570 euros per year. Want to know more about credit cards and insurance? Then definitely read this piece.
3. Use the holiday pay to create an extra pension savings box
There is a very small chance that our statutory pension will be sufficient to enjoy our old age later without any worries. That is why the government encourages us to create a pension savings box ourselves via the second pension pillar. Thanks to the new dual pension saving system, savers can choose whether to save up to 960 or 1,230 euros annually. Depending on the chosen pension saving system, the tax benefit varies between 25 and 30 percent.
Those who do not leave this year can use the holiday allowance to fully fill their pension savings box. Those who have already paid for their home may consider entering into a long-term savings contract. If you do not have a home loan, you can then claim an additional tax benefit. The size of that benefit depends on the policyholder’s salary. The maximum savings amount is 172.80 euros + 6 percent of the net taxable professional income. The saver cannot save more than 2,310 euros per year. The effective tax reduction is 30 percent of the premium paid.
Anyone who subscribes to a tak21 insurance policy through our site, will receive a nice discount for certain products. For example, savers have to pay less entry fees if they subscribe to an insurance product from AG Insurance through our site. Incidentally, a tak21 insurance policy brings more money into the drawer than a traditional savings account. Top Return from AG Insurance, for example, raised 1.05 percent last year.