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Tutorial: Premium deposits equity

What are Premium deposits equity?

A premium deposit is a lump sum monetary deposit managed in Czech crown or in euro whose interest yield is premium. Stock premium deposits are intended for clients who want to invest on the stock market without a risk that the amount invested could be lost. The premium amount depends on the development of the prices of selected stock titles. The product tenure is 2.5 years.

How do Premium deposits equity work?

The premium amount depends on the development of the prices of selected stocks of companies traded in Europe, Asia and America and is determined every calendar day. The premium amount is determined on the basis of the starting value of every stock. Every calendar day of the premium period closing prices of stocks for the respective day are compared with their starting prices and pursuant to predetermined ranges, premium corresponding to one of three interest rates is credited. If prices of all stock titles are above or equal to their starting values, the highest interest rate will be applied. If the price of a stock title is below its starting value, but prices of all stock titles reach at least the determined barrier, the medium rate will be applied. The 0%-rate will be applied on a day that the price of one stock or several stocks drops below the determined barrier.

Your benefits

The investor will be paid the premium not only when stock prices go up, an attractive premium will also be paid on the deposit of the prices of some selected stocks drop. Moreover, yields are monitored and locked daily, so further development cannot affect the credited premium amount.

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.
  • Thanks to a fixed maturity date, other investments can be planned.
  • The deposit offers investment in Czech currency or in euro.

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 The fee is 5% of the withdrawn amount with stock premium deposits.


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 stock premium deposit, the minimum investment is EUR 400.

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 equity react to...

… increase of stock prices?
Any increase of stock prices is always good news for the premium amount. If prices of all stock titles increase above or equal to their starting values, premium corresponding to the highest rate will be credited for the respective day.

… decrease of stock prices?
Any decrease of stock prices is bad news for the premium amount. But a stock premium deposit will also provide attractive premium if the prices of some selected stocks drop. If the price of a stock title is below its starting value, but prices of all stock titles reach at least the determined barrier, premium corresponding to the medium rate will be credited for the respective day.




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