Swedbank Offers Investment Deposits with Guaranteed Interest
OREANDA-NEWS. From 22 October to 27 November, Swedbank will be offering the 3-year investment deposit Interest Plus with guaranteed interest for the first time, reported the press-centre of Swedbank.
The underlying asset of the investment deposit is the strategy devised by JPMorgan, with the kroon deposit earning a total of 10% guaranteed interest within three years plus possible additional interest in the event of an increase in the underlying asset.
The prices of a lot of asset classes have fallen in value in the last year and interest in more secure investments has therefore significantly increased. “An investment deposit with guaranteed interest offers, on the one hand, fixed interest similar to a fixed-term deposit, and on the other hand growth potential characteristic of investments,” said Simmo Sommer, Head of the Derivatives Division of Swedbank, highlighting the suitability of the new deposit in today’s environment.
“If you place Estonian kroons in the deposit, you will earn a total of 10% guaranteed interest. This means more than 3% annual fixed interest plus additional income in the event of an increase in the underlying asset,” he explained. “However, this doesn’t mean that interest can be taken out on an annual basis – the deposit still earns 10% guaranteed interest over three years.” Sommer added that in the case of a euro deposit 5% guaranteed interest is paid after three years.
JPMorgan Efficiente – the underlying asset of the deposit – is a strategy which applies the modern portfolio theory approach to investment. The aim of the strategy is to earn maximum income with limited risk. The strategy consists of nine indices following the movements of different sectors and asset classes. Once a quarter the portfolio is adjusted based on the market situation, which also allows income to be earned during market recession periods. The term of the deposit is three years.
The investment deposit allows risk-free investment in financial markets since, at the end of the deposit period, the principal deposit amount is 100% guaranteed and in the case of kroon deposits the guaranteed 10% interest is also added. If any increase in the underlying asset exceeds the amount of the guaranteed interest, the investor earns additional interest based on the amount of the increase in the underlying asset.
Further information is available from www.swedbank.ee/investeerimishoius.