Structured deposits

A structured deposit comprises a time deposit (the main contract) with a return linked (in whole or in part) to changes in an index or benchmark, such as a stockmarket index (an implicit derivative).

It is important to check if the deposit guarantees repayment of 100% of your capital at maturity.

Banks are required to inform customers about the specific terms and conditions of deposits of this type and to take the utmost care to ensure that customers understand the product.

Pre-contractual information

  • The bank’s obligation to repay the initial investment upon maturity
  • Circumstances on which the return depends, including an estimate of its APR.
  • Potential risks that may result in the return being less than initially offered by the bank in terms of APR for a deposit with periodic interest, or receiving no remuneration at all (this information should be highlighted).
  • How deposit cancellation cost will be calculated, if applicable.

Content of the agreement

Due to their complexity and risk, structured deposit agreements must contain:

  • A number of representative examples of the deposit’s return and its cost of cancellation, based on various possible scenarios for the performance of the implicit derivative. These must be reasonable and be based on objective data.
  • The bank’s express and clearly stated obligation to reimburse the capital invested at maturity.
  • The value of the implicit derivative at the moment of signing the contract, as the effective yield of the deposit transaction as a whole well as, if applicable. A clear statement that the return may be higher or lower at the end of the operation.

 Find out more about structured deposits in our 2017 Complaints Report (in Spanish)  (90 KB)


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