Dictionary
Spot rate
– current, available FX rate in the interbank market, applicable at the Bank on the date of opening a Dual- Currency Investment and made available prior to opening it.Business Day
– day on which the Bank runs its operations (from Mondays to Fridays), excluding Saturdays and statutory holidays, as per Polish laws and regulationsSettlement Day
– a day falling two Business Days prior to the maturity of the Dual-Currency Investment.Transaction Day
– first day of the Investment Period.Maturity Day
– last day of the Investment Period when the Invested Amount is to be disbursed with Interest in the Base Currency or the Alternate Currency.Fixing NBP
– average rate published on a daily basis by the National Bank of Poland on the websites of Reuters (code: "NBPFIXA").Reference Rate
– a relevant FX Rate applicable to the exchange of the Base Currency to the Alternate Currency or, respectively, the Alternate Currency to the Base Currency at the average rate (fixing) of the National Bank of Poland as at the Exercise Date of the Dual-Currency Investment.Strike Rate
– rate of exchange of the Base Currency to the Alternate Currency determined at the beginning of investment. Strike Rate may be higher or lower than the Current Market Rate, depending on the selected investment option.Investment Amount
– amount invested by the client in the Dual Currency Investment.Interest
– interest multiplied by the Investment Amount expressed in the Base Currency.Interest Rate
– annual interest rate used to calculate Interest Proceeds from the Dual Currency Investment.Investment term
– the Dual Currency Investment lifespan commencing on the Dual-Currency Investment Commencement Date (including this day) and ending on the Dual-Currency Investment Maturity Day (excluding this day).Shift
– a difference between the Spot Rate and the FX Rate measured in the investment currency; it may range from 0.01 up to 0.30.Base Currency
– currency in which the Dual-Currency Investment is opened.Alternate Currency
– currency against which the Base Currency rate is compared. Payment on the maturity date may be made in the Alternative Currency.Simulated Interest Table
| Base | Currency
Alternate | PLN
USD | PLN
EUR |
| Investment Period | Shift | Interest p.a. | |
| 2 weeks
2 weeks 2 weeks 2 weeks 1 month 1 month 1 month 1 month | 0
-0,01 -0,03 -0,05 0 -0,01 -0,03 -0,05 | 22%
20% 14% 10% 18% 16% 13% 10% | 14%
13% 9% 7% 12% 11% 9% 7% |
| Maximum margin p.a. | 2-5% | ||
Step 1
Currency Step 2
Investment term Step 3
Strike Rate Step 4
Interest Rate Step 5
Possible scenarios
Currency Step 2
Investment term Step 3
Strike Rate Step 4
Interest Rate Step 5
Possible scenarios
Remember
• Presented interest & market rates are simulated and do not reflect current market conditions. Educational purposes only.
• The Minimum Investment
Amount is PLN 30,000 or its
equivalent in other currency.
• Dual Currency Investment may be opened in PLN, EUR, USD, GBP or CHF, including the Alternate Currency. For the purpose of this simulation, the Base Currency is PLN and the Alternate Currency is EUR or USD.
• Before deciding to open the Dual Currency Investment, please read Key Information Documents (KID)
Choose the currency pair
Choose which currency of the chosen pair you would like to make your initial investment in (Base Currency). The Base Currency is expected to depreciate against the other currency of the chosen pair called the Alternate Currency. For example, you decide that you want to invest PLN 100,000.Your base currency
Base Currency
– currency which you want to make your initial investment in.
PLN
Choose your alternate currency
Alternate Currency
– currency against which the Base Currency exchange rate is monitored. The payment on the investment maturity day may be delivered in the Alternate Currency.|
You choose USD. You expect PLN to depreciate against USD. |
You choose EUR. You expect PLN to depreciate against EUR. |
Selected:
| Investment Amount:
Base Currency: Alternate Currency: | 100 000 PLN
 PLN
|
Remember
• Available Investment Terms are:1 week, 2 weeks, 3 weeks,
1 month, 5 weeks, 2 months
3 months, 6 months. For the purpose of
this simulation the following Investment Terms selected:
2 weeks, 1 month.
• If you choose to terminate your Dual Currency Investment before the Maturity Date, you will have to pay the early termination fee.
Choose an Investment Term
You decide in advance on the investment term.
On the Maturity Date you will receive the Investment Amount
plus the Interest proceeds in the Base or Alternate Currency converted at the Strike Rate.
When choosing the Investment Term you should consider your expectations and currency exchange forecasts.
Investment term:
Investment term
– the Dual Currency Investment lifespan commencing on the Dual-Currency Investment Commencement Date (including this day) and ending on the Dual-Currency Investment Maturity Day (excluding this day).
Selected:
| Investment Amount:
Base Currency: Alternate Currency: Alternate Currency: | 100 000 PLN
PLN
|
Remember
You expect PLN to depreciate against the Alternate Currency. You may reduce the investment risk if you shift the Strike Rate below the Spot Rate. This may decrease the amount of return from your investment but it will also increase the probability of your projections.Set your Strike Rate
You set the Strike Rate at which the Base Currency will be converted into the Alternate Currency. Strike Rate may be the same as the Spot Rate or it may be “shifted” from 0.01 to 0.30 from the Spot Rate. Choosing the Strike Rate similar to the Spot Rate you may reduce the investment risk but then the Interest proceeds will be lower.
Spot Rate
/PLN
(Presented interest & market rates are simulated.)
Spot Rate
– current, available FX rate in the interbank market, applicable at the Bank on the date of opening a Dual- Currency Investment and made available prior to opening it.
Choose Shift
/ Strike Rate
Shift
– a difference between the Spot Rate and the FX Rate measured in the investment currency; it may range from 0.01 up to 0.30.
Strike Rate
– rate of exchange of the Base Currency to the Alternate Currency determined at the beginning of investment. Strike Rate may be higher or lower than the Current Market Rate, depending on the selected investment option.|
4,28
4,30
4,32
4,33
3,26
3,28
3,30
3,31
|
Selected:
| Investment Amount:
Base Currency: Alternate Currency: Investment Term: Shift: Strike Rate: | 100 000 PLN
PLN
|
Remember
• The Interest Rate is provided per year and it does not include tax.• If you select other investment parameters, the Interest Rate may vary.
Interest Rate
The Interest proceeds depend on the chosen currency pair, Investment Term and Shift. The Interest is agreed at the outset of the investment and has been presented in the Interest Table available with your Relationship Manager – see TABLE.
Interest p.a. for your Dual Currency Investment:
| Base Currency
/Alternate Currency |
Investment
Period |
Shift |
Interest
p.a.
Interest Rate– annual interest rate used to calculate Interest Proceeds from the Dual Currency Investment. |
| PLN/ | |||
Presented interest & market rates are simulated | |||
Selected:
| Investment Amount:
Base Currency: Alternate Currency: Investment Term: Shift: Strike Rate: Interest p.a.: | 100 000 PLN
PLN
|
Remember
The return from the Dual Currency Investment depends onthe future movements of the exchange rate of your selected Currency Pair (Base Currency and Alternate Currency), Strike Rate and Interest Rate.
Possible Scenarios on Maturity Date
Dual Currency Investment may be delivered in either the Base Currency or the Alternate Currency depending on the Reference Rate, i.e. Poland’s Central Bank Fixing published two Business Days before the Maturity Date of the Dual Currency Investment.
Base Currency (PLN) depreciated |
| Reference Rate is higher than Strike Rate.
Investment Amount and Interest proceeds will be paid back to you in Base Currency (PLN). 
|
Base Currency (PLN) appreciated |
| Reference Rate is lower than Strike Rate.
The Investment Amount and the Interest proceeds will be paid back to you in the Alternate Currency (USD) () converted at the Strike Rate.
|
Selected:
| Investment Amount:
Base Currency: Alternate Currency: Investment Period: Shift: Strike Rate: Interest Rate p.a.: | 100 000 PLN
PLN
|
Remember
The Interest proceeds from Dual-Currency Investment disbursed to individuals who do not conduct non-agricultural business activity are subject to a 19% tax rate. The tax is collected and paid by the Bank. Tax regulations may be subject to change.
Market Rate
(Presented interest & market rates are simulated.)
| Interest: | 100 000 PLN x x /365 = PLN | |
| Interest after
tax: | PLN - ( x 19%) = PLN | |
| Amount to be paid out: | 100 000 PLN + PLN = PLN |
