• Structured Deposits with Principal Repayment Guarantee

    Deposit products with possibility of earning higher returns on your idle cash balances.

Returns

Earn additional return if you predict the market development correctly.

Your choice

Agree the transaction parameters with our dedicated specialists.

Guarantee

Guaranteed principal repayment (applies to deposits held till maturity).

Variability

Several different products are available.

Why KB?

Contact us

Contact our dealers via telephone from the comfort of your office or home.

In control

Always receive deal confirmations with all parameters.

Be in the picture

At the end of reference period you will receive settlement confirmation with calculation of final return.

How to get this product?

Leave it all up to us. Leave your contact information – we will call you back.

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About Structured Deposits with Principal Repayment Guarantee

  • Deposit product that offers higher returns on clients’ idle cash balances, provided they predict the market development correctly.
  • Deposits can be either in the form of a term deposit or promissory note.
  • In case of a promissory note:
    • The note is issued by Komerční banka and kept in custody with us.
    • There is no need to present the note in person on the maturity date. Komerční banka will automatically honour and settle the promissory note.
  • Final return is linked to the exchange rate development of two currencies – reference exchange rates. There are daily observations of the values for the purposes of final return calculation.
  • Clients assume risk of lower return in case the market developments differ from their expectations.

Types of Structured Deposits

  • Structured Deposit Scoop
    • Parameters which determine returns are:
      • Reference period
      • Upper and lower bound of the reference exchange rate band
    • Return on the Deposit scoop is:
      • Minimum interest rate if the reference exchange rate moves outside the band during the reference period
      • Maximum interest rate if the reference exchange rate remains within the band during the reference period
    • Starting date of the reference period is usually trade date + maximum 2 business days; end date of the reference period is the maturity date – 2 business days
  • Structured Digital Deposit
    • Parameters which determine returns are:
      • Minimum and maximum interest rate
      • Barrier (i.e. condition to be met in order for higher interest rate to kick in)
    • Return on Digital deposit is:
      • Maximum interest rate provided the barrier is reached or exceeded (e.g. reference exchange rate is less than or equal to the defined limit as of the specified date and time)
      • Minimum interest rate if the barrier is not breached
  • Structured Binary Deposit
    • Parameters which determine returns are:
      • Reference period
      • Upper and lower bound of the reference exchange rate band
    • Binary deposit return is:
      • Minimum interest rate if the reference exchange rate is below the lower bound anytime during the reference period
      • Maximum interest rate, if the reference exchange rate exceeds the upper bound anytime during the reference period
      • Interest rate if the reference exchange rate remains within the band
    • At client’s request, this deposit may be structured as follows: maximum interest rate is paid out, if the lower bound is breached (and minimum interest rate applies, if the upper bound is reached)
  • Wedding Cake Structured Deposit
    • Parameters which determine returns are:
      • Reference period
      • Upper and lower bounds of the wide and narrow reference exchange rate bands
    • Wedding cake deposit return is:
      • Maximum interest rate, if the reference exchange rate remains within the narrow reference band during the reference period
      • Interest rate if the reference exchange rate remains within the wide reference band
      • Minimum interest rate, if the reference exchange rate moves outside both narrow and wide bands during the reference period
    • Starting date of the reference period is usually trade date + maximum 2 business days; end date of the reference period is the maturity date – 2 business days
  • Structured Deposit Corridor
    • Parameters which determine returns are:
      • Number of observation periods
      • Upper and lower bound of the reference exchange rate band
    • Deposit corridor return is calculated as follows:
      • minimum interest rate + (maximum interest rate - minimum interest rate) x number of periods, for which the reference exchange rate remains within the band / total number of periods

Important information for you

Risks

  • Clients must be aware of the risk of lower returns (potentially below standard returns) in case the market developments differ from their expectations on the trade date.
  • Principal payment guarantee only applies to deposits held till maturity.
  • Deposits in the form of a promissory note cannot be terminated early.

Intended for

Individuals and legal entities, both domestic and foreign, who are interested in earning higher returns on their idle cash.