“Double Result” Deposit from OTP Group. Pending a new placement period

At the end of May, for the ninth year in a row, OTP Capital together with OTP Bank will offer their customers a compatible “hybrid” financial product. The history of the origin of such a product began in the mid-2000s. It was then that in Hungary, OTP Fund Management Hungary and OTP Bank Hungary decided to combine a regular bank deposit and an investment fund for the first time, thus creating a “dual” product.

The peculiarity of the “Double Result” Deposit is the combination of two tools with different investment terms: a 3-month deposit with OTP Bank and an investment with the term of 12 months in a mutual investment fund (MIF) from OTP Capital. This combination of tools gives conservative customers not only the opportunity to get a higher deposit rate, but also the opportunity to “try” to invest in the mutual funds. Why to “try”? Because for an average citizen in Ukraine, the investment in a mutual fund seems to be something complicated and unrealistic. However, after the first experience, customers enjoy not only the process but also the result.

If we talk about the effectiveness of such a deposit, historically, the deposit part of a contribution yielded the investors a 2-5% higher revenue than the standard deposit in OTP Bank with the same placement period. As for the fund, its yield has always exceeded the yields on annual deposits of OTP Bank and other leading banks in the country.

Two years ago, the fund reformatted the method of paying profits to participants by reducing the tax burden. Today, the fund participants get profit in the form of dividends, which is taxed at twice the rate of 9% in comparison to ordinary investment income. This innovation was received positively by investors. Firstly, they pay significantly less taxes. Secondly, they do not need to leave the fund. They can stay in the fund for a long period, while getting their annual income.

So what does a customer investing in the “Double Result” Deposit get? He/she receives an investment consisting of two equal parts that are placed on a deposit and in the investment fund, with different investment periods, as well as with half the taxes on the part invested in the fund. These are the advantages of a compatible product of OTP Capital and OTP Bank. One deposit – “Double Result”.

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