One-year Hungarian Government Bond
Would you invest your savings into low-risk investments for a foreseeable period? Then the One-year Hungarian Government Bond might be an ideal choice, with a payment guaranteed at the end of the term by the State.
WHO MIGHT BE INTERESTED?
For those who:
- wish to invest their savings at low risk;
- would like to see the returns by which their savings will increase in advance;
- look for security;
- seek investments for a foreseeable period;
- wish to invest exempt from the interest tax
WHAT SHOULD I KNOW ABOUT THE ONE-YEAR HUNGARIAN GOVERNMENT SECURITY?
- It is a security with fixed interest rate,
- with a basic denomination of 10,000 HUF.
- It is marketed via subscription. It can be subscribed at nominal value, i.e. the full price. The one-year term starts from the second working day after the closure of subscription.
- At the end of the term, the interest will be credited to the customer’s account, together with the principal.
REPURCHASE OF THE ONE-YEAR HUNGARIAN GOVERNMENT SECURITY
Under specified conditions1, UniCredit Bank quotes daily purchase rates for the series of the One-year Hungarian Government Security; in this way they can be sold easily prior to their maturity.2
Are you saving for your retirement and seeking state subsidies? You can purchase One-year Hungarian Government Securities on a pension savings account.
The receivables embodied by the One-year Hungarian Government Security will not be time-barred towards the Issuer i.e. the Hungarian State. At the end of the term, the interest will be credited to the customer’s account, together with the principal, after the deduction of the savings tax. The interest income from the One-year Hungarian Government Security issued before 3 June 2019 is taxable; the tax rate for the interest income is currently 15%.
This information is not exhaustive and shall not be considered as an offer, recommendation or investment advice; its only purpose is to draw attention. For the detailed conditions see the General Business Conditions, Lists of conditions of UniCredit Bank and the official documents of the Issuer (the Information document and Public offer applicable for the relevant series of the One-year Hungarian Government Security). UniCredit Bank Hungary Zrt. (Activity Licence No.: I-1523/2003, a member of the Budapest Stock Exchange) as distributor of the government security, reserves the right to change the conditions. This information constitutes a commercial communication under Act CXX of 2001 on Capital Markets, and a marketing communication under Act CXXXVIII of 2007 on Investment Undertakings, Commodity Dealers and the Rules of Activities in which they may be engaged. Please take note that the tax consequences of the investment may only be accurately decided after consideration of the customer’s individual circumstances, and they are subject to change over time.
1For further information on the conditions of the government securities quotation, please see section 5.2.2 of the General Business Terms and Conditions regarding Investment Services and the One-year Hungarian Government Security’s Information document.
2The price of the government securities is influenced by changes in the market yield. If the investor sells the securities prior to the maturity, in the event of increasing yields, the price of the government securities may fall below the original purchase price. In the case of interest-bearing bonds, it may mean that, upon their sale, the buyer pays the time-proportionate interest to the seller for the period that has passed since the last interest payment, but the net price, i.e. the price of the principal. may fall below the value as of the date of purchase so the investor may suffer a price loss. If the investor keeps the securities until maturity, it will receive the annual yield recorded upon the purchase, since the market price change that occurred during the term will not appear in the investment, only in the event of sales prior to maturity.