PRODUCT ANALYSIS — BRANCH 21
2.90% guaranteed over 9 years. Before you sign, here is what the brochure doesn't say — and why there is a better option for every type of investor.
IN BRIEF
Ethias Savings 21+ advertises 2.90% guaranteed — but the 2% premium tax deducted on day one reduces your real return to ~2.74% on the initial capital. Over 9 years, XEON (money market ETF) delivers the same return with no entry cost, no lock-in, and no €20,000 minimum. Over the long term, a World ETF does nearly 3 times better. Branch 21 has no use case that an ETF alternative doesn't cover more effectively.
Every Branch 21 product in Belgium — Ethias, AG Insurance, Belfius, AXA — shares the same structural flaw: a 2% premium tax on every payment. This is a legislative tax. No insurer can waive or negotiate it.
It is deducted before your money is invested. On a €20,000 payment, €400 disappears immediately and permanently — before a single euro is put to work.
At 2.90% gross per year, it takes approximately 8.4 months just to recover the day-one loss before generating any real return.
Product sheet
The 2% premium tax is not a management fee recoverable over time. It is money lost on day one, on every payment, permanently. No Branch 21 product in Belgium avoids it.
Branch 21 targets savers who want to 'secure' their money over the short to medium term. XEON — a money market ETF tracking the ECB's €STR rate — covers exactly that need, without any of Branch 21's structural drawbacks.
| Ethias 21+ | World ETF (IMIE) | XEON (money market ETF) | |
|---|---|---|---|
| Entry cost | −2% (−€400) | −0.12% securities tax (−€24) | −0.12% securities tax (−€24) |
| Capital invested | €19,600 | €19,976 | €19,976 |
| Return | 2.90% guaranteed | ~8.00%/yr (hist.) | ~2.9% (€STR, variable) |
| Value after 9 years | ~€24,900 | ~€38,910 net | ~€25,900 |
| Liquidity | Locked in for 9 years | Full — sell in 1 day | Full — sell in 1 day |
| Minimum investment | €20,000 | A few euros | A few euros |
| Capital gains tax (CGT) | €0 (Branch 21 exempt) | ~−€990 (10% on gain > €10,000) | €0 (gain < €10,000 → threshold not reached) |
Over 9 years on €20,000, the World ETF generates ~€38,910 net — €14,000 more than Ethias 21+. Even XEON, with no market risk, does better (+€25,900 vs +€24,900).
Over 9 years — the duration the product itself proposes — the World ETF already wins. Over 30 years, the gap becomes a life decision.
XEON tracks the European overnight interbank rate (€STR). It is not contractually guaranteed. But XEON has never recorded a loss over any 12-month period since inception. The contractual guarantee Ethias offers costs 2% upfront, a 9-year lock-in, and a €20,000 minimum. That is a very expensive insurance premium against a risk that has never materialised historically.
One genuine advantage exists: if ECB rates drop significantly, XEON's return decreases with them. Ethias's 2.90% is locked for 9 years. That is the only concrete advantage of Ethias Savings 21+ — and it comes at a considerable structural cost.
If stability is your goal, XEON delivers the same return as Ethias 21+ with no entry costs, no lock-in, and no €20,000 minimum. The only thing Ethias is selling you is a contractual guarantee against a rate drop — at the cost of 2% of your capital, today.
Over 30 years, choosing Ethias Savings 21+ — or any Branch 21 product — instead of a World ETF represents an enormous opportunity cost.
| Ethias 21+ (renewed) | World ETF (IMIE) | |
|---|---|---|
| Entry friction | −2% at each renewal | −0.12% securities tax at buy and sell |
| Estimated return | ~2.50%/yr net (future rates unknown) | ~8.00%/yr (hist.) |
| Gross value after 30 years | ~€38,200 | ~€201,000 |
| Capital gains tax | €0 (Branch 21 exempt) | ~−€17,100 (10% above €10,000) + TOB −€241 |
| Final net value | ~€38,200 | ~€183,659 |
Even after fully crediting the CGT exemption, the World ETF generates ~4.8× more than Ethias 21+ over 30 years — a gap of ~€145,000.
Methodology note: simulation based on a lump-sum investment of €20,000. The 8% return for IMIE is based on the historical average of the MSCI World index over 30 years. Past performance does not guarantee future results.
Branch 21 is structurally disadvantaged by the 2% premium tax — a legislative cost that applies to every provider without exception. This is not an Ethias-specific problem: it is a categorical flaw.
For a short horizon, XEON is strictly better on every dimension except the contractual rate lock. That lock costs 2% upfront, a 9-year lock-in, and a €20,000 minimum. For the vast majority of savers, that is not a favourable trade.
Over 30 years, a World ETF generates ~4.8× more net value than Ethias Savings 21+ — a gap of ~€145,000 after taxes.
Within its category, Ethias is not the worst Branch 21 product — 0% management fees and direct distribution (no intermediary commission) are genuine advantages over AG Insurance or Belfius. But being the best in a structurally bad category is still a bad choice.
There is no profile of Belgian investor for whom Ethias Savings 21+ is the optimal choice. Short horizon: XEON. Long horizon: World ETF.
Last updated: April 2026
Illustrative simulation only. Past returns do not guarantee future returns. This content is provided for educational purposes only and does not constitute investment advice within the meaning of MiFID II regulation.