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Progressive Deposit

Progressive Deposit

Ieguldījums ar garantētu pamatsummas atmaksu

  • 100 % guarantee of receiving the deposited amount in full at the end of the deposit term
  • A chance to earn higher interest in comparison with other deposit investments

If you can afford to invest your free financial resources for a longer period of time, the Progressive Deposit is a great chance to gain experience without taking the risk of losing the deposited amount. Interest on the investment deposits is tied to movements in the price of the underlying asset. The investment risk of the progressive Deposit is not high – you are guaranteed a 100% repayment of the deposited amount at the end of the deposit term. Take this challenge, follow up the current offers and apply for the Progressive Deposit in the SEB Internetbank!

What is a Progressive Deposit?

A Progressive Deposit is an advanced type of term deposit that offers to take part in international investment markets without taking the risk of losing the deposited amount. SEB bank frequently offers investment opportunities in the Progressive Deposit: their term, the minimum amount, participation, guaranteed interest income and base asset is determined individually for a particular offer and their profitability is dependent on the value changes of the base asset set in each offer (index, equities, commodities or other assets).

Protection of the invested capital

Interest on the investment deposits is tied to movements in the price of the underlying asset. It is not known at the moment of making an investment. At the same time, your invested amount is protected from losses – at the end of the investment term the bank guarantees the repayment of the deposited amount in full. Thus the investment risk of Progressive Deposit is not high.

Value changes of the financial asset markets

Return on investment is dependent on the value changes of the base asset determined in each offer of Progressive Deposit. The broad choice of base assets offers versatile investment opportunities – you can invest in different regions and markets - equities, indeces, commodities or currenciesas well as choose investments with more complicated strategies which are aiming to ensure positive return on investment in any market condition. A gradual investment strategy is applied to the Progressive Deposit: new investment offers are prepared each month and you can choose the most suitable one for you.

Redemption of the Progressive Deposit

You as an investor keep the right to apply for the suspension of Progressive Deposit before the deposit term has ended. In case of individual redemption of the Progressive Deposit, the bank will pay you the deposited amount and deduct the commission fee for the withdrawal but also add the additional pre-term interest. The risk premium (if it has been paid for) is not being paid out. Read more about the individual redemption of the Progressive Deposit (LAT, PDF)

Frequently asked questions

According to the Law "on Personal Income tax", from 1 January 2010, the income of private persons gained from capital is subject of the taxation, including gains from deposit in Progressive Deposit. Therefore we would like to explain our current and potential clients how this tax is collected.

As stipulated in the law "On Personal Income Tax" the state charges tax in the amount of 10% from the gained interest profit from the Progressive Deposit. This means that the tax is not collected from the whole deposit amount but only from the gained profit.

As stipulated in the law, from 1 January 2011, tax on deposit interest shall be paid on the day when the income is received, respectively at the moment when interest income is disbursed. The responsible body for collecting the tax is the one paying out the income, in this situation – the bank. This means that SEB bank will automatically withhold tax (make the tax payment instead of you) at the time when interest is paid, which according to the contract takes place quarterly.

Deposit Guarantee Law of the Republic of Latvia stipulates guaranteed compensation to the amount of the deposit (but not exceeding 100,000 EUR) per depositor, if the deposit is not available. Additional compensation up to 200,000 EUR is possible for the following deposits of the private person within the period of three months from the date when the initial deposit was made:

  1. Income from transactions from the real estate owned by the person and intended for residence;
  2. Social benefits, compensations and deposits intended for other social purposes as determined by the regulatory enactments paid to the person;
  3. Compensation for criminal damage or wrongful conviction of the person according to the procedure stipulated by the regulatory enactments.

If the depositor has several guaranteed deposits, they are added up and considered as one guaranteed deposit.

The guaranteed compensation is paid only to those depositors whose claim has been recognised by the liquidator or administrator. Unavailability of deposit occurs upon judgement of the court regarding insolvency of the credit institution and initiation of bankruptcy proceedings. The guaranteed compensation is not paid for certain statutory customer deposits, such as deposits of financial institutions, persons associated with the credit institution, their relatives, etc.

Basic information about state guaranteed deposit protection
Deposit Guarantee Law

Contacts

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