Premium deposits FX
An investor can profit from the expected strengthening or weakening
of one currency against another currency.
Premium deposits FX
A premium deposit is a lump sum monetary deposit managed in Czech crown, euro or American dollar, whose interest yield is premium. Currency premium deposits are best for clients who intend to invest on the currency market without a risk that the amount invested could be lost. The premium amount depends on the development of the exchange rate as announced by ČNB for every day. The product tenure is 1 year. The availability of premium deposits in different currencies depends on current market interest rates.
Premium deposit FX allows you to profit from the development of the currency market without the risk of losing the deposited amount and with a secure minimum return.
Your advantages
- Yields credited daily.
- Legal insurance of deposits applies to premium deposits alike to term deposits.
- The deposit is set up and managed free of charge.
- Premium deposits may be bought at all Česká spořitelna branches, soon it should also be possible in George.
- The premium deposits offer a certain minimum return.
You should know
- The availability of premium deposits in different currencies depends on current market interest rates.
- Premium deposits are liable to the same tax as term deposits, yields of natural persons are subject to 15%-withholding tax.
- Premium deposits may be terminated ahead of schedule at branches of Česká spořitelna. In such a case, however, a price is charged for early termination of the deposit.
What else you should know about Premium Deposits FX
An investor can profit from the expected strengthening or weakening of one currency against another currency. Every day during the premium period, when the exchange rate announced by the CNB for that day is within the set range, a proportional part corresponding to the higher interest rate is added to the deposit. The band that ensures a higher premium rate is determined every calendar month, and its width is maintained for the duration of the deposit. This increases the chance for investors that the observations will be inside the premium band. If the announced exchange rate is outside the specified range, a proportional part corresponding to the lower premium rate is added to the deposit.
… the strengthening of the czech crown against the euro?
The band that brings a higher premium is set in the direction of strengthening the crown. The investor thus has a higher chance of repeatedly attributing a higher premium in the event of a strengthening of the czk or euro against the US dollar.
… a weakening of the euro against the US dollar?
The band that brings a higher premium is set in the direction of strengthening the euro. If the euro weakens, the exchange rate may fall outside the band. Until the announced exchange rate reaches the specified range again, only a proportional part of the minimum interest rate is attributed to the deposit.
Terms of purchase and sale of premium deposits FX
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