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Tutorial: Premium deposits FX

What are Premium deposits FX?

A premium deposit is a lump sum monetary deposit managed in Czech crown, euro or American dollar, whose interest yield is premium. Currency premium deposits are best for clients who intend to invest on the currency market without a risk that the amount invested could be lost. The premium amount depends on the development of the exchange rate as announced by ČNB for every day. The product tenure is 1 year.

How do Premium deposits FX work?

The investor may profit from expected strengthening of Czech crown or American dollar against euro. Every day of the premium period that the exchange rate announced by ČNB for the day is inside the determined range, premium is credited to the deposit, amounting to the higher interest rate. The range providing higher premium is inclined to strengthening and shifts automatically pursuant to the effective exchange rate every calendar month. Thus investor's chance for crediting higher premium repeatedly is higher when Czech crown or American dollar are strengthening against euro.

Your benefits

The currency premium deposit enables the investor to invest on the currency market in Czech crowns, euros or America dollars, without a risk that the amount invested could be lost and with a guaranteed minimum yield. The investor may profit from expected strengthening of Czech crown or American dollar against euro.

Your advantages

  • Yields credited and locked daily.
  • Legal insurance of deposits applies to premium deposits alike to term deposits.
  • The deposit is set up and managed free of charge.
  • All CZK premium deposits may be bought at Česká spořitelna branches or through SERVIS 24.
  • The premium deposits offer investment in Czech or foreign currencies (USD, EUR).

You should know

  • Premium deposits are liable to the same tax as term deposits, yields of natural persons are subject to 15%-withholding tax.
  • Premium deposits may be terminated ahead of schedule at branches of Česká spořitelna. In such a case, however, a penalty fee is charged due to additional bank costs. The fee is 2% of the withdrawn amount with currency premium deposits.
  • Revolving is set automatically with all CZK currency premium deposits. Revolving may be cancelled at branches of Česká spořitelna by the Application for Revolving Termination for a specific deposit. The Application for Revolving Termination should be filed not later than on the Revolving Day, which is one business day before the deposit maturity.


Purchase conditions

  • To set up a premium deposit, you need to have an asset account of investment instruments with Česká spořitelna. Opening an asset account is free of charge, it can be done at any branch of Česká spořitelna, an investor - natural person will have to submit a valid identity card, a legal person will have to submit documents of corporate personality.
  • To set up a premium deposit, it is not necessary to have a money account at Česká spořitelna. Money for the payment of the premium deposit may be sent to the respective collecting account from any Czech Crown account. After setting up a Euro or Dollar premium deposit, you need to have an investment account in the respective currency at Česká spořitelna. Opening and keeping an investment account is free of charge.
  • For premium deposits, the minimum investment is CZK 10,000. For EUR currency premium deposit, the minimum investment is EUR 400, for USD currency premium deposit the minimum investment is USD 500.

Who can buy?

  • Citizens of the Czech Republic or foreign nationals over the age of 18 years (legal representative in the case of a minor).
  • Legal person, natural person–entrepreneur.
  • Other entities established under the laws of the Czech Republic (foundations, movements, political parties).

How do Premium deposits FX react to...

… strengthening of Czech crown or American dollar against euro?
The range providing higher premium is inclined to strengthening and shifts automatically pursuant to the effective exchange rate every calendar month. Thus investor's chance for crediting higher premium repeatedly is higher when Czech crown or American dollar are strengthening against euro.

… weakening of Czech crown or American dollar against euro?
The range providing higher premium is inclined to strengthening and shifts automatically pursuant to the effective exchange rate every calendar month. If Czech crown or America dollar weaken, the client can get beyond the range and to the Premium. Till the announced exchange rate gets back to the determined range, a minimum interest rate will be credited to the client.





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