Nonguaranteed structured deposits

• Deposit product that offers higher returns to clients on their disposable funds, provided they predict the market development correctly
• Deposits in the form of term deposits or deposit promissory notes
• In case of deposit promissory notes:
  • Instrument issued by Komerční banka and kept in custody of KB
  • No need to present the note in person at maturity - with automatic settlement by Komerční banka
• Clients assume certain level of risk (initial investment may not be fully recovered in extreme cases) with a view to generate higher returns on their investments

• Clients assume certain level of risk (initial investment may not be fully recovered in extreme cases) with a view to generate higher returns on their investments
• Clients are exposed to risks of an option seller – in case an option is exercised, the seller is in a situation, where the current market price of underlying assets sold by the seller may be significantly higher than the strike price or, conversely, the current market price of underlying assets purchased by the seller may be considerably lower than the strike price (to which the seller committed)
• Dual deposits offer above-standard interest rates as well; however, they are not guaranteed structured deposits (with guaranteed principal) – in case the defined limit condition is met and the transaction is subsequently executed, the client’s loss from such transaction (compared to the current exchange rate) may exceed any received interest
• Deposits in the form of deposit promissory notes cannot be terminated early

• Clients receive above-standard interest rates
• Given transaction also involves binding conditions that specify the deposit payment method and currency – payment of principal and interest either in the deposit currency or another agreed currency, at a predetermined limit exchange rate
• Final payment currency depends on the relation of the value of the reference exchange rate to the limit exchange rate as of the reference date
• Agreed parameters namely include:
  • Limit exchange rate
  • Second currency agreed for payment (i.e. a reference exchange rate together with the deposit currency)
  • Defined ratio of the reference exchange rate to the limit exchange rate for settlement in the original deposit currency
  • Reference date relevant for the final payment currency selection

• Clients receive above-standard interest rates
• Given transaction also involves an option agreed for the benefit of the bank, on the basis of which the bank may ask the client to sell the agreed currency as of the deposit maturity at an exchange rate agreed in advance – the bank may only exercise this option if the limit condition is met
• Agreed parameters namely include:
  • Second currency agreed (this also defines the reference exchange rate) 
  • Limit exchange rate
  • Defined ratio of the reference exchange rate to the limit exchange rate for which the bank may exercise its option
  • Reference date on which the limit condition fulfilment is verified
• Limit condition describes the relation of the reference exchange rate to the limit exchange rate as of the reference date 
• In case the limit condition is met, the bank shall exercise its right to purchase the agreed currency (sold by a client) in the nominal amount of the deposit, at a limit exchange rate agreed in advance

These products are intended for individuals and legal entities, both Czech and foreign residents, seeking above-standard returns on their disposable funds.