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25.04.2012

7% on IKE Promotional Deposit

Now in Bank Millennium pension savings can be increased with the yield on the three-month IKE Promotional Deposit, bearing 7% per annum. The Deposit can be set-up following a deposit on the IKE account with Millennium TFI funds.

The attractive IKE promotional deposit is to encourage Customers to split their savings into short and long-term part. One the one hand we know that Poles prefer to invest relatively short-term - mainly 3 months, on the other hand we realise how important it is to save for retirement. Hence our proposal - says Marek Ubysz, Head of the Savings Products Department.
IKE Promotional Deposit benefits:
  • 7% per annum fixed interest rate
  • Can be set-up for 3 months after a prior deposit on IKE with Millennium TFI funds
  • Minimum deposit - PLN 5,000, maximum - PLN 10,578 (limit of deposits on IKE in 2012)
  • Deposit amount may not be higher than the amount of the transfer to IKE
  • May be set-up as a renewable deposit (will be renewed as per the Price List)
Our observations indicate that only few holders of IKE make full use of the available limit of deposits. Most customers save small amounts, not exceeding PLN 300 per month. - explains Mirosław Kuźmiński, Member of the Management Board of Millennium TFI SA - We see rather a conservative approach to selecting investment strategies. Customers choose secure sub-funds or those with little exposure to shares (Deposit and Stable Growth). Meanwhile thinking about long-term saving it makes sense to contemplate investment strategies with greater exposure to the equities' market. In the long run this strategy should bring a higher rate of return. In this context I recommend a formula, in which the level of exposure to shares results from current age. The age should be subtracted from 100. For example a thirty-year-old can invest aggressively 70% of his portfolio. People more sensitive to risk may subtract their age from 80.
Benefits of IKE with Millennium TFI funds together with then attractively priced deposit:
  • money accumulated on IKE account is exempt from capital gains tax
  • higher yield - longer time perspective to generate a higher yield
  • independent selection of investment strategy - whatever the decision, the savings structure can always be changed
  • flexible programme - regular deposits are not required, this is entirely up to the customer's preferences and expectations
  • access to information - possibility of checking the amount of accumulated capital - daily information about current value of participation units
  • additional yield on a 3-month deposit, bearing 7% per annum
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