Structured deposits

It is a deposit with a guaranteed interest yield, i.e. the bank will pay out, at the deposit’s maturity, the principal and its appreciation in the amount of the guaranteed minimum interest yield.
Moreover, though, a structured deposit can deliver a premium yield derived from the underlying asset, without you taking on any market risk.

We currently offer the following structured deposits:

• Guaranteed inflation-proof deposit
• Guaranteed premium deposit – currency basket
• Guaranteed premium deposit “Return of the Carpathian tiger”

Guaranteed inflation-proof deposit

This product offers a combination of two yields: a guaranteed yield and a “premium yield” offering the potential to achieve a higher yield, depending on the performance of the underlying assets. A premium yield is paid out at the time of deposit’s maturity and can only be in a positive value.

Minimum investment

10 000,-

Currency

EUR

Guaranteed interest for the entire deposit period is calculated as flollows

3 years: MAX (10.2%; inflation for the deposit period +3%)
5 years: MAX (15%; inflation for the deposit period + 5%)

Interest is paid out

upon deposit maturity

Underlying asset

The euro area harmonised index of consumer prices (HICP) (excluding tobacco) as published by Eurostat.

Inflation-proof deposit with guaranteed yield

The financial crisis and downturn in consumption worldwide have been accompanied by a largely unexpected slowdown in price growth. The crisis has at the same time provoked much debate among experts and the lay public on the economy’s future development. Experts have divided into two camps: “those expecting a future in which the world experiences deflation or, conversely, extremely high inflation.” On the one hand, several central banks have moved their “currency printers” up to full speed in order to maintain consumption and economic growth and on the other hand, concerns about a fall in consumption and production have divided these camps.

Why a guaranteed inflationary-proof deposit?

 
This product is a combination of a standard guaranteed deposit and a minimum guaranteed interest yield, which is always at least 1% p.a. higher than inflation in the euro area. Savings thus maintain their purchasing power irrespective of inflation, for a period of up to 5 years. Moreover, in the case of very low inflation a minimum threshold of interest for the entire deposit period is set at 10.2% for deposits fixed for 3 years and 15% for deposits fixed for 5 years.
This product gives the assurance of an attractive interest under all circumstances: in the case of price stagnation or decline as well as in the case of returning inflation. The deposit is insured by law.
 

Guaranteed premium deposit – currency basket

Offers you the convenience of a combination of a standard guaranteed deposit and a minimum guaranteed yield, plus a potential yield, depending on the performance of the underlying assets in the financial markets.

Minimum deposit

10 000,-

Currency

EUR

Guaranteed yield / maturity

6% / 3 years

Interest payment

at the deposit’s maturity date

Underlying asset - basket of six currencies:

NOK (Norwegian krone) (1/6)
SEK (Swedish krona) (1/6)
AUD (Australian dollar) (1/6)
TRL (Turkish lira) (1/6)
CZK (Czech koruna) (1/6)
PLN (Polish zloty) (1/6)
compared to EUR (single European currency)

Why this basket of currencies?

Recent events in the financial markets have clearly indicated that only the economies of states with a responsible and independent fiscal policy, supported by a competitive industry and ideally with their own primary natural resources base have a chance for long-term prosperity without major shocks to their monetary stability. Based on this core thesis we have chosen economies and their national currencies as a promising investment for the period of the next three years.

Guaranteed premium deposit “Return of the Carpathian tiger”

The guaranteed premium deposit shall provide you with the comfort of combining the classic deposit with a guarantee of the deposited sum and a determined guaranteed yield to which we offer a yield depending on the development of the basic asset on the financial markets.

Minimum deposit amount

10 000,-

Currency

EUR

Maturity

2 years

Payment of interests

upon maturity of the deposit

Base asset

EURRON exchange rate

Deposit opening date

the first working day of the next calendar week after depositing the funds of a client on the respective summary account of the bank

Why exactly return of the carpathian tiger?

During the world crisis, the Romanian economy went through a significant recession, however, currently it is starting to grow. During the crisis Romania with the assistance of the IMF managed to successfully complete some reforms (including pension reform) and the government has definitely taken the route of decreasing the budget deficit. Foreign investors positively evaluate the last developments in Romania, which is also manifested by the yields of Romanian government bonds due to the decrease of risk surcharge to Romanian assets. While in the past Romania had the highest risk surcharge (CDS) from the surrounding countries (Hungary, Croatia), this year it fell to the 2.5 annual minimum and in contrast it is higher than surrounding countries. Currently Romania has a similar surcharge as Spain. This, together with the relatively law rate of indebtedness and positive macroeconomic prospects, gives potential for the further revaluation of the Romanian currency.
As of 2011 the Romanian lei has been one of the most efficient world currencies, which signals a return to the path of pre-crisis convergence. The strong currency is also supported by the central bank with the aid of slowing inflation.

You can choose from 2 variants of structured deposit:

1.  RCT – it is suitable for investors expecting a volatile development of the EURRON exchange rate. It brings a 3,3% guaranteed yield and unlimited maximum yield and a single premium yield from the deposit.

2.  RCT 175% – it is suitable for investors expecting valorization of the EURRON exchange rate in the range between 4,4% to 16,7% for 2 years. It has a guaranteed yield of 0% (return of the principal), however, owing to leverage the potential yield grows two times faster up to 20%.  This is the advantage of the double premium yield from the deposit.

Yield profile of the deposit

It results from the graph that the “Return of the Carpathian tiger” deposit always brings a positive valorization in the minimum amount of 3,3%.  On the other hand, the “Return of the Carpathian tiger 175%” deposit has a guaranteed yield of 0% (only the return of the principal) and the premium yield shall only grow with a positive development of the EURRON exchange rate (point A). Owing to its “turbo effect” it grows but the yield 1,75 times faster and as of 4,4% of valorization of the exchange rate (point B) it offers a better yield than the first deposit. At a 11,43% valorization of the EURRON exchange rate (point C) the deposit hereby achieves a 20% valorization and the premium yield is limited. Until the situation when the EURRON exchange rate was valorized by 16,7% (point D), the “Return of the Carpathian tiger 175%” deposit brings a higher yield  than “Return of the Carpathian tiger”.  In the case of a valorization of the EURRON exchange rate higher than 16,7% the first deposit variant is more advantageous, where the yield is not limited.

Disclaimer

This information was created by J&T BANKA, a.s., registered office: Pobřežní 14, 186 00 Praha 8, corporate registration number: 47115378, registered in the Commercial Register of Municipal Court in Prague, section: B, entry no. 1731, pursuing business in the Slovak Republic through a branch of J&T BANKA, a.s., branch of a foreign bank, located at Lamačská cesta 3, 841 04 Bratislava 4, corporate registration number: 35 964 693, registered in the Commercial Register of District Court Bratislava I, section Po, entry no. 1320/B (simply the “Bank”). The content of the information is a presentation of selected products offered by the bank and possibly also information on their nature and characteristics.  None of this information is intended as recommendation or advice as to the suitability or unsuitability of purchasing these products. Information concerning investment instruments serves exclusively for explaining the principles of the operation and the characteristics of the underlying assets from which the variable part of the yield derives.  In no way may this information be taken as a guarantee of the future development of these underlying assets, or as an investment recommendation or advice regarding investing in the mentioned investment instruments. The bank explicitly warns the client and the client takes note that products based on structured deposits are a sophisticated type of deposit product whose purchase is recommended primarily for persons with experience and knowledge of bank deposit products. The bank moreover expressly warns the client and the client takes note that the variable part of the yield may reach zero values, and the bank in no way guarantees that the variable part of the yield will achieve above-zero values. In such a case the final yield from a structured deposit may appear disadvantageous in comparison with fixed-yield deposits. The bank explicitly warns the client and the client takes note that even in the case that the variable part of the yield achieves above-zero values, the final yield from a structured deposit may appear disadvantageous in comparison with fixed-yield deposits. The Bank in no way guarantees that the variable part of the yield will reach a value that will make the final yield from the structured deposit appear more favourable in comparison with fixed-yield deposits. The development of the variable part of the yield over the duration of the deposit is not a guarantee of the same value of the variable part of the yield at the end of the deposit. This information is not intended for persons having their domicile or place of business in a state that prohibits the creation and distribution of such information or where doing so would contravene local legislation.