Home » CheBanca! Certificates of Deposit: Opinions and Characteristics

CheBanca! Certificates of Deposit: Opinions and Characteristics

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CheBanca! Certificates of Deposit: Opinions and Characteristics

Co-founder of Affari Miei Independent Financial Advisory Company

November 28, 2023

You are probably here because your intent is to find a solution for save your money and would like to opt for a deposit product: i certificates of deposit CheBanca! they could be a valid alternative among all the choices you have and the wide range of banking products at your disposal.

I certificates of deposit CheBanca! they can be a solution: today together we will see all the characteristics of this product, what are its costs and how to subscribe to them.

Furthermore, we will also see what the difference is between a certificate of deposit and a deposit account, so you will have all the tools to proceed with making a coherent choice suited to your needs.

But now let’s get started!

This article talks about:

CheBanca!: Here is a presentation

Before delving into the analysis of certificates of deposit, let’s see who the institution we are turning to is.

CheBanca! is a banking group of products consumerwhich targets core customers and consumers who need checking accounts, deposits and other basic banking solutions.

It is controlled by Mediobanc groupa, one of the most important globally.

It was founded in 2008 as a multi-channel bank to support the group’s funding, and in 2014 it expanded its mission to include savings management, combining the native digital approach with a strong consultancy content.

In fact, today the digital platform is the operational hub of the bank, and is in close contact to serve customers and direct and indirect distribution networks. To date the bank can count on 37.5 billion euros patrimony total clients and 1250 consultants in the wealth management division.

What are CheBanca certificates of deposit!

I certificates of deposit they are a form of time deposit which offers the holder the right to reimbursement of the principal at maturity, plus interest.

These deposits have a duration ranging from 2 to 5 years and can have both a fixed return and a variable return. They therefore offer different investment opportunities to those who subscribe to them.

If you want to know more about certificates of deposit I recommend you read our guide.

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Are they safe tools?

Certificates of deposit are not strictly deposit accounts (we will see the differences later) but they are still funds safe tools.

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In fact, they are guaranteed by interbank deposit protection fund.

This means that if the bank were not able to return the money to its customers, the fund would intervene and could reimburse those who deposited their money up to the maximum threshold of €100,000 each.

So, essentially what does this mean? That if you have invested less than that amount you don’t have to worry about anything. Furthermore, as we saw before, the bank is a group solid e reliable so you shouldn’t have any problems from this point of view.

The advantages of CheBanca certificates of deposit!

But let’s see what they are advantages of these certificates of deposit.

First of all you have the possibility to choose between well 4 time and constraint deadlines, also choosing the option you want for the payment of interest. This is a nice plus for the versatility of these products.

Secondly they are safeas we have just seen, and lastly you are libero: the certificate can be released before expiry. In fact, you will be refunded the sum you tied up at the beginning, withholding the amounts of interest already paid up to that point, and on what you had deposited a fixed rate interest lower than that originally applied will be recalculated and paid.

You can choose between 5 categories

Certificates of deposit are classified into 5 different categorieseach of which offers 4 different time deadlines of constraint, equal to 2,3,4 or 5 years.

First of all, I also remind you that the minimum amount that can be subscribed is €1,000.

Let’s see what they are 5 categories:

Fixed rate certificates: in this case the capital will be remunerated at a fixed, predetermined and constant rate for the entire duration of the bond, the coupons will be paid annually;
Fixed rate certificates with final premium: also in this case the capital will be remunerated with a fixed rate for the entire duration of the bond with coupons paid annually, and in addition at maturity there will be a final premium coupon equal to 0.50% of the amount deposited, for each bond ;
Fixed rate certificates with “step-up”: if you choose this type you will have the capital remuneration at a fixed increasing rate with an annual payment of coupons;
Variable rate certificates: this type instead remunerates the capital based on the trend over time of a parameter (e.g. 12-month Euribor) increased by a spread, with the periodic payment of coupons;
Fixed rate “one coupon” certificates: the capital is remunerated at a fixed rate with the payment of interest taking place in a single solution, on the expiry date of the certificate of deposit.

CheBanca certificates of deposit interest!

Now let’s see the most important part that all investors must consider before choosing their investment, that is interestsbecause if we are here to choose how to invest we do it precisely for the interests.

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Let’s look at the interests following the previous categories:

Fixed rate CDs

We have a gross interest rate that differs based on the duration of the bond in this way:

2 years: 3%; 3 years: 3.10%; 4 years: 3.20%; 5 years: 3.30%.

Fixed rate CD with final premium

In this case I will attach directly to you the screenshot taken from the information sheet so you can have a more in-depth overview:

Fixed rate CD with “step-up”

This type remunerates you with an increasing gross interest rate, and also in this case I attach the screen to understand in detail what the rates are:

Fixed rate “one coupon” CD

For these certificates, however, the gross interest rates are as follows:

2 years: 6%; 3 years: 9%; 4 years: 12.50%; 5 years: 16%.

The withholding tax for all certificates is 26%.

Costs

What are the costs to pay to sign a certificate of deposit?

You will not be charged any fees for materializing the CDs and there are also no other fees or commissions related to subscribing to the instrument.

Periodic communications will reach you free of charge, while you will be charged stamp duty, according to current laws.

What is the difference with a savings account?

To tell the truth, as you may have noticed, these are tools if we want enough similarwhich share several characteristics.

However, there are differences between the two instruments that must be underlined and considered.

I deposit accounts they also have an unencumbered form, while certificates of deposit do not; the certificate of deposit is more critical because it is a security and, as such, can be traded like a bond.

Maybe the savings account overall is more flexible than the certificate of deposit, but it always depends on what you are looking for.

How to subscribe for certificates of deposit

Per to subscribe certificates of deposit you must hold premier account or of a digital account.

You can request CDs directly from yours customer area on the official website or you can get help from a consultant who will support you.

If you want to speak to a person you can also choose to go to a nearby branch or book a call and speak to a consultant.

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Affari Miei’s opinions on CheBanca certificates of deposit!

We have reached the end of our review, so now we can make some considerations on the certificates of deposit offered by CheBanca!.

Currently the period is favorable for interest rates. In fact, you will surely have read a lot offers relating to deposit accounts: It seems that banks are trying to offer more and more offers with high interest rates.

Il certificate of deposit it is a safe investment option, as we have seen, to grow your savings. In fact, they offer a fixed return and the guarantee of the capital invested: this means that if you are looking for peace of mind in an investment you can consider CDs.

However, security comes at a price: i rates Interest rates on CDs tend to be lower than other riskier forms of investments. This feature makes CDs ideal for those who prefer stability, but may not be the most advantageous choice for those seeking higher returns.

You will surely have realized that the interest rate of a savings account is currently higher, so you could actually consider opting for this instrument.

However, I cannot give you a clear and certain answer, obviously: I don’t know you and I don’t know your financial situation, so I can’t know in detail what you are looking for.

Maybe a variable rate certificate of deposit is right for you.

If, however, you are looking for a classic deposit account, or you have understood that the deposit account offers you greater guarantees and features more suited to your investing profile, then I suggest you use the free TOP Deposit Account service, the automatic comparator to find and compare the best savings accounts around.

Before saying goodbye, I also leave you with some guides that may be useful for starting an investment journey in an advantageous way:

See you soon!

Find out what kind of investor you are

I have created a short questionnaire to help you understand what type of investor you are. At the end, I will guide you towards the best contents selected based on your starting situation:

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