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Structured Products

DEPO+

Product characteristics

DEPO+ is a deposit product enabling an above average interest yield from the deposit. It exploits the expected movement of rate of any pair of currencies (such as EUR/CZK). The target group is clients needing to purchase or sell another currency but are not happy with the current spot rate. Simultaneously they have available funds ready to be used for a purchase (or sale) that are deposited in their account at standard interest rates.
The DEPO+ product enables a substantially higher interest rate (by 5 % even more) and simultaneously to participate in the favorable movement of the rate; this is done as follows: the client agrees on a period for which he/she sill deposit his/her available funds and selects the “potential conversion rate” – which is the rate for which he/she would be willing to sell its deposited funds. Two days prior to the deposit maturity, this rate will be compared to the current NB fixing and if the fixed rate has exceeded by its positive development the rate set out for the potential conversion, the deposited funds will be converted into the other currency using the predetermined potential conversion rate. Failing that, the client will receive the originally deposited currency. The interest will however always be credited in the original deposit currency.

BONUS DEPO ON DAILY BASIS

Product characteristics

BONUS DEPO ON DAILY BASIS is a deposit product targeting all clients who wish to achieve a higher yield from their available financial funds than what is usual on the market. It exploits the movement of rate of any pair of currencies (such as EUR/CZK) within an expected range in a determined period of time. The client defines a period of time for which he/she deposits his/her available funds and simultaneously determines a range within which he/she expects the rate to move during the given period. For each working day in which the rate will be fixed inside the determined range, the client will receive in his/her deposit an interest rate higher than the current rate (so-called maximum interest). For each working day in which the rate will be fixed outside the determined range, the client will receive an interest rate lower than the current rate (so-called minimum interest). The final yield of the deposit on maturity represents an average of rates achieved every day. The nominal amounts of the deposit and the interest are always paid out in the originally deposited currency.

CREDIT+

Product characteristics

CREDIT+ is a credit product (a contrary of the DEPO+ product) that enables to achieve a very low rate for a short-termed credit thereby reducing substantially the expenses connected with the credit. It exploits the expected movement of the exchange rate of any currency pair (such as EUR/CZK) and provides the client with the possibility of participating in the favorable rate movement.

The client makes an agreement about the period of time in which he/she will draw the credit and defines the so-called „potential conversion rate“ – which is a rate at which he/she would be willing to convert his/her drawn funds on maturity. Two days prior to the credit maturity, this rate gets compared with the actual ČNB fixing and if the fixed rate exceeds owing to its positive development the determined potential conversion rate, the drawn funds get converted into the other currency using the agreed potential conversion rate. Failing that, the client repays the originally drawn currency. Interest is always repaid in the original credit currency. On maturity, the client will pay to the bank the usual interest rate used for credits and receive from the bank the interest payment for CREDIT+ that will reduce his/her payment of interest for the credit.

More details can be found in the Dealing Manual available from our contact persons.