Building Savings

About Building Savings

• Your deposits bear interest at a rate guaranteed for a period of 6 years.
• Only you decide the amounts and frequency of your deposits. However, in order to benefit from the bonus interest offered as part of the specific marketing campaign, you must meet the so-called turnover requirement – i.e. at least 6% of your target amount each year (the aforementioned does not apply to campaigns “Extension”, “Effect”, and special offer for Housing Associations and Unit Owner Associations). Returns on deposits are credited annually, whereas the bonus interest shall be credited to your building savings account immediately after the relevant marketing campaign ends. Returns on deposits are credited once a year.
• Standard building savings contract term is 6 years. If you wish to withdraw your savings early, you will not be entitled to receive any state contributions for the duration of the contract.
• It is not necessary to make regular deposits to receive state contributions.

What happens after the binding (lock-in) period expires?

• After the binding (lock-in) period expires, you can withdraw your savings – including the state contributions, if any – and use them for anything. You can also extend your building savings contract or get a building savings loan of up to CZK 1,000,000 on favourable terms – without security by means of collateral or guarantor.

What should you do if you need to finance a new home before you are eligible to apply for a building savings loan?

• You can apply for a bridging loan of up to CZK 1,000,000 – without security by means of collateral or guarantor – during the building savings contract term.

How can you get the maximum state contributions of CZK 2,000 per year?

• In order to maximise the state contribution amounts (CZK 2,000 per year), it is necessary to save up at least CZK 20,000 each year. It is also possible to prepay state contributions – if you transfer more than CZK 20,000 to your building savings account over a one-year period, the state contribution in respect of any “excess amount” shall be carried over to the next year.

What about building savings contracts for children?

• If a client requests payment of savings in connection with a contract of a minor during the binding (lock-in) period of the contract, please note that such legal act must subsequently be approved by a court with jurisdiction over guardianship matters. However, if the binding (lock-in) period has already expired in connection with such contract, we will accept signatures of both legal representatives.

Terminating a building savings contract

A client may prepare a free-form request for the payment of building savings funds. However, a standard letter form may also be used for this method of payment.

• A client (his or her legal representative) shall complete the application form and have his or her signature officially certified at a Czech Point location (signatures of both legal representatives of a child shall always be required). The application form is subsequently sent by mail (we recommend a standard letter for this purpose) or via data mailbox to MP (this service may be requested directly at Czech Point as well).
• If a client submits his or her request for contract termination without an officially certified signature via data mailbox, it cannot be accepted (this also applies to electronic data messages with electronic signatures - an electronic signature does not replace an officially certified signature).
• If a client requests payment of savings in connection with a contract of a minor during the binding (lock-in) period of the contract, please note that such legal act must subsequently be approved by a court with jurisdiction over guardianship matters. However, if the binding (lock-in) period has already expired in connection with such contract, we will accept signatures of both legal representatives. If a client prepare a free-form request for the payment of building savings funds, it is necessary to have signatures of both legal representatives officially certified.

What can a building savings loan be used for?

In case of a building savings loan, it is always necessary to document that the relevant funds are used to finance housing needs, such as:

• Purchase of a residential property
• Construction
• Reconstruction
• Settlement of spouses or heirs
• Refinancing of another loan

• Create a financial cushion going forward
• Interest rate guaranteed for a period of 6 years
• Finance your home with a building savings loan
• Even before you can apply for a standard building savings loan, you may apply for a bridging loan of up to CZK 1,000,000 – without security by means of collateral or guarantor  
• You can also enter into a building savings contract for your children, making their start to independent living a bit easier
• Building savings loans can also be used to cover any investments already made in the past 12 months

• If you need funds right away, you may apply for a (building savings) bridging loan.
• If you plan to apply for a loan in the future, you can conclude a building savings contract, use it to save up and, once you meet a few simple requirements, you can apply for a standard building savings loan.