• Structured Deposits

    You can earn higher return on you idle cash balances if you predict the market developments correctly.

Returns

Predict the market development correctly and earn additional return on your idle cash.

Your choice

Agree the transaction parameters with our dedicated specialists.

Professional team

A team of our specialists is at your disposal.

Variability

Several different products are available.

Why KB?

Contact us

Call us from the comfort of your office or home.

In control

Receive deal confirmations.

Leave it to us

Promissory note will remain in custody of KB and will be automatically settled.

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

  • Deposit product that offers higher returns on clients’ idle cash, provided they predict the market development correctly.
  • Deposits are 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.
  • Clients assume risk of lower return in case the market developments differ from their expectations.

Types of Structured Deposits

  • Structured dual deposit
    • Clients can earn higher return
    • Repayment of the principal invested and interest payment will be either in the original currency of the deposit or in another currency at a fixed exchange rate (strike exchange rate) agreed in advance
    • The repayment currency is determined on the reference date by comparing Reference exchange rate with the barrier exchange rate
    • Parameters which determine final return:
      • Alternative repayment currency
      • Strike exchange rate
      • Barrier i.e. under what conditions will the repayment currency switch to alternative currency
      • Reference date relevant for the specification of the repayment currency
  • Structured reverse dual deposit
    • Clients can earn higher return
    • The deposit has embedded barrier call option written by the depositor to the bank. The option may be only exercised if a barrier is breached i.e. if the reference exchange rate reaches or exceeds a predetermined level.
    • Parameters which determine final return:
      • Alternative repayment currency
      • Strike exchange rate
      • Barrier i.e. under which condition the option may be exercised
      • Reference date on which reference exchange rate is observed and compared to the barrier
    • Barrier describes the relation of the reference exchange rate to the limit exchange rate as of the reference date.
    • In case barrier is reached or exceeded, the bank shall exercise its right to purchase nominal amount of the deposit from the client in the agreed currency at strike exchange rate.

Important information for you

Risk

  • Clients assume risk that original invested principal may be partially lost
    • 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 possibility of enhanced return; however, they are not guaranteed structured deposits (with guaranteed principal repayment) – in case the reference exchange is at or above the barrier the client’s loss may exceed any received interest
  • Deposits in the form of a promissory cannot be terminated early

Intended for

Individuals and legal entities, domiciled both in the Czech Republic and abroad, who are interested in earning higher returns on their idle cash.