Your bank, a partner for life. Really?

With heavy advertising, the major banks in the area present themselves as trustworthy partners who can support you at every stage of your life. But is this really the case? One thing is certain, they offer a wide range of products and services depending on your age, your needs, and your projects.*

What is the purpose of a bank? Ideally, it is to make it easier for you to manage your finances on a daily basis, to make it possible for you to realize your current life projects, and to help you achieve your future financial and asset-related goals. And in practice? Let’s follow together the journeys of Eric and Isabelle, two people who live in Luxembourg and who have been able to benefit from good banking support at every stage of their lives.

The early years

As soon as he was born, Eric already had a savings account in his name. Indeed, his parents immediately wanted to prepare for his future by depositing a certain amount into this first account. With a standing order, they regularly topped it up with small amounts. After four years, they realized that this savings yielded little despite the preferential rate obtained and decided to supplement it with an investment fund savings plan. Although riskier, the latter offers more attractive return prospects.

For Isabelle, her parents opted for foresight by taking out a life insurance product. Faced with the reality of real estate prices, her grandparents also subscribed to a housing savings plan for her to help her one day access property ownership. That makes sense.

In order to ensure good financial education and help their child build a healthy relationship with money, they both regularly consult platforms like myLIFE or Lëtzfin.

In order to ensure good financial education and help their child build a healthy relationship with money, both Isabelle’s and Eric’s parents regularly consult platforms like myLIFE or Lëtzfin. From the age of 12, Eric and Isabelle were able to open their first current account free of charge and obtain a debit card and access to an online banking space. Too early? On the contrary, this allows them to better get used to managing money as they grow up. And there is no stress for the parents since they only deposit very modest amounts and the accounts do not allow overdrafts.

Studies

How time flies! Isabelle has just obtained her high school diploma and wants to continue her studies abroad. Fortunately, her parents had anticipated her choice. On its side, her bank is adapting and offers her a package suited to her new status. In addition to the financial aid from the State, her bank gives her access to a loan at an advantageous rate guaranteed by the State. Good news for Isabelle: her bank is making a financial gesture at the first subscription of the loan and agrees to act as guarantor for her rent towards the owner of her accommodation. Nice!

Isabelle also benefits from an advantageous savings rate until she turns 25, as well as great deals and discounts to which her European Youth Card, offered for the first year, entitles her. Again, this is specific to her bank and other institutions have their own advantages to offer.

First steps in working life

For his part, Eric is starting his working life and has found a promising job in commerce. Having subscribed to a “young professional” daily banking package, he has everything he needs to manage his budget well: online banking space, free cards and accounts until he turns 30, free and unlimited instant transfers.

For his first rental, Eric turned to his bank to borrow enough to pay back his rental guarantee while also financing his material setup in his beautiful apartment. A welcome helping hand. He knows that he can also benefit from a preferential rate on his personal loan. Perhaps for his first car in the near future.

Even though his income is still relatively modest, he is already considering the available solutions to regularly invest a small portion of what he earns and prepare for the future. Retirement savings plan, life insurance, structured products, term deposits—there are many options, and he has scheduled a “finance meeting” with his banker to help him progress step by step along the investment curve.

Real estate project

Back from her studies, Isabelle didn’t just bring home a Master’s degree in biomedicine, she also has a beautiful engagement ring on her finger. François, her future husband, plans to join her soon. Among the various steps to take for newcomers, he will need to open a bank account in Luxembourg. There will also be the question of how to manage the couple’s finances and organize a joint budget. Together, they plan to settle in an old farmhouse that needs renovating. The home savings plan taken out by Isabelle’s grandparents when she was little provides a serious helping hand for this. They intend to take advantage of better loan conditions and available government aid, as the project also involves making the home more eco-friendly.

On his side, Eric’s business is flourishing and his finances are getting better and better. Now in a relationship, he and his partner plan to have children. And this project goes hand in hand with becoming owners of their own home. After a discussion with their banker, they know exactly what their borrowing capacity is, the different possible options, and what the implications are of buying together. They are ready to see the family grow!

Investments and retirement

Many years have passed. While Isabelle is fulfilled professionally, her love life has been more complicated since her separation from François following major disagreements on how to manage their joint budget. Couples and money do not always mix well. Fortunately, she managed her personal finances well during this difficult period and kept the farm by continuing to repay the mortgage on her own. As she does not have many resources left to invest, she is focusing on preparing for retirement through a retirement savings plan contract that allows her to benefit from certain tax advantages. As an only child, she knows that she will also inherit from her parents when the time comes. This prospect reassures her somewhat in light of the decrease in her income when she retires.

Father of three children, Eric is now wondering how to prepare the financial future of his offspring, even though his financial situation is currently very comfortable. He has entrusted the management of his investments to his private banker by opting for a discretionary management contract. He has also taken out a life insurance policy and has ventured into rental property investment, both in Luxembourg and abroad with the purchase of a second home in France. In short, everything is going well for him. That does not stop him from thinking of others through philanthropic projects.

Even though he still has many good years ahead of him, he wants to do what is necessary to protect his assets and ensure, when the time comes, that they are passed on in a way that is in accordance with his wishes.

Isabelle and Eric have very different life paths, but they both chose a universal bank, in this case BIL. It is not the only universal bank in the area, but it has always been able to meet their needs. Just as it did for their parents, grandparents, and ancestors before them. Since 1856. When we say that your bank can be a partner for life, it is an understatement.

From birth until the transfer of your assets to your children after your passing, your bank is by your side to help you manage your finances and achieve your life projects. It offers you a whole range of products and services tailored to your situation and needs. It is by your side to build tomorrow together!

* Content translated from French by the BIL GPT AI tool