Structured products
DEPO+
Product characteristics
DEPO+ is a deposit product allowing an above-standard interest rate on a deposit. It uses the expected movement of exchange rate of any currency pair (e.g. EUR/CZK). It is intended for the clients who need to purchase or sell other currency but are not satisfied with the current spot rate. Concurrently, their free money intended for purchase (or sale) is deposited in the account with standard interest rates.
The DEPO+ product allows substantially higher interest on the deposit (by 5 % and more) and at the same time participation in favourable movement of exchange rate as follows. The client shall agree upon the period during which they deposit their free money and select the indicated “exchange rate for eventual conversion” - i.e. an exchange rate for which they would be willing to sell their deposited money. Two days prior to the deposit maturity, this exchange rate is compared to the current fixing of the Czech National Bank (ČNB) and if the fixed exchange rate due to its positive development exceeded the set exchange rate for eventual conversion, the deposited money will be converted into another currency applying the exchange rate for eventual conversion agreed upon before. Otherwise, the client receives the originally deposited currency. The interest, however, is always added into the original exchange rate of the deposit.
BONUS DEPO NA DENNÍ BÁZI (ON A DAILY BASIS)
Product characteristics
BONUS DEPO NA DENNÍ BÁZI is a deposit product intended for all clients that try to achieve higher revenue from free money than is usual on the market. It uses the movement of exchange rate of any currency pair (e.g. EUR/CZK) in the expected range in the fixed period.
The client specifies the period for which they deposit their free money and, concurrently, they determine the range in which they expect movement of the exchange rate in the course of that given period. For each working day on which the exchange rate is fixed inside the set range, the client receives a higher interest rate on the deposit than the common rate (that is, maximum interest). For each working day on which the exchange rate is fixed outside the set range, the client receives a lower interest rate than the common rate (or minimum interest). The resulting income on the deposit at the end of maturity means the average of the received rates for each day. A nominal deposit amount and interest is always paid in the original currency.
ÚVĚR+
Product characteristics
ÚVĚR+ is a credit product (opposite of DEPO+) that allows the attainment of a very low rate of a short-term credit and thus substantial reduction of credit-related costs. It uses the expected movement of exchange rate of any currency pair (e.g. EUR/CZK) thus concurrently providing the client with an option to participate in the favourable movement of the exchange rate.
The client shall agree upon the period during which they withdraw their credit and determine the indicated “exchange rate for eventual conversion” - i.e. an exchange rate for which they would be willing to convert their withdrawn money at maturity. Two days prior to the credit maturity, this exchange rate is compared to the current fixing of ČNB and if the fixed exchange rate due to its positive development exceeds the set exchange rate for eventual conversion, the withdrawn money will be converted into another currency applying the agreed exchange rate for eventual conversion. Otherwise, the client repays the originally withdrawn currency. The interest is always repaid in the original exchange rate of the credit. Upon maturity, the client will pay to the bank the usual interest rate for credit and shall receive an interest rate from the bank for ÚVĚR+ which shall reduce an interest rate payment from the credit.
More information is available in the dealing manual which can be obtained from our contact persons.
Contact person
Lukáš Žitný
phone: +421 250 559 650
email: lzitny@vub.sk