Savings’ Instruments
The savings’ instruments are issued with the objective of capturing households’ savings. Their main feature is the fact that they are retail distributed, that is, they are issued directly to single investors and they have small minimum subscription amounts. These instruments can only be subscribed by households; they are non-tradable and may only be transferred due to the death of the owner.
The issue and redemption of these instruments is done directly through IGCP’s customer counter or through the customer counters of other institutions, hired by the IGCP for this purpose: the post office (CTT) and retail banks.
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Saving Certificates (CA) – C Series |
Amounts and Subscription
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Nominal value |
1 Euro |
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Minimum subscription amount |
100 units |
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Maximum per Savings Certificate Account |
250 thousand units |
Term and Interest
|
Term |
10 years, as from the respective value date of each subscription |
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Interest rate |
Sum of the base rate on the start date of the quarter and the subscription's holding premium |
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Base rate as a percentage |
Calculated on a monthly basis on the second-last business day on the month, to be in force during the month ensuing, according to the formula below: |
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Interest period |
Each subscription will accrue interest on a quartely basis. The interest becomes due on the day of the month equal to the subscription's value date. Should this day not exist in the maturity month, the interest will become due on the first day of the subsequent month. |
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Holding premium in percentage points |
0.50 - in the second year; |
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Capitalisation |
Automatic capitalisation of the accrued interest (net of income tax). |
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Reimbursement |
Of capital and capitalised interest on the 10st anniversary of the subscription's settlement date. The amounts will be credited in an account (the Bank Identification Number ( NIB) must be indicated when taking out the 1st subscription). |
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Early redemption |
Total or partial, as from the date on which the subscription's first interest payment becomes due. The redemption establishes the repayment of the nominal amount of the units redeemed and of the amount of the interest capitalised up until the redemption date. |
| Transfer/Prescription | C Series Savings Certificates may only be transferred on the death of the respective holder and are subject to prescription in favour of the FRDP within 10 days of the respective maturity. |
Ownership and Transactions
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Ownership |
Only natural persons may subscribe Savings Certificates. |
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Savings account |
Natural persons may only hold one Savings account and each Savings account will be assigned a Bank Identification Number (NIB). |
| Proxy | A proxy may be assigned to each subscription. Said proxy will have the necessary powers to redeem, in part or in whole, the units of said subscription upon presentation of the physical securities. |
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Saving Certificates (CA) – B Series |
| Interest accrual period | Quarterly |
| Accrued interest capitalisation | Interest (net of tax) is added to the total value of the Certificate. |
| Interest rate | Interest rate results from adding a term premium to the base interest rate. |
| Base interest rate |
Indexed to money market interest rates, through a mechanism defined in a Decree by the Minister of Finance. At present, it is a weighted average of Euribor 3 months and 12 months. |
| Term premium |
Established in a Decree by the Minister of Finance. At present, the premium is 25 basis points (bp) in the second semester of a Certificate and increases by 25 bp in the following semesters until it reaches 200 bp. |
| Interest calculation | Quarterly rate is ¼ of the annual rate. |
| Maturity date | None |
| Redemption |
The Certificates may be redeemed by the owner or by his/her representative, on The Post Office (CTT) |
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Saving Certificates (CA) – A Series |
This instrument has similar features to those of the B series issued before July 1986, except in the nominal value of each unit, which is € 0.34916.
