A new series of savings certificates, ‘F’, went on sale this Monday, offering a gross base interest rate of 2.5%, following the suspension of ‘series E’, leading to several reviews by the opposition.
According to the regulation that governs the terms of these new savings certificates (CAs), the titles of this “Series F” will have a maximum term of 15 years, after which they are “returned” to the bank account to which they are linked.
In practice, this means that people investing in these CAs can keep them for the next 15 years, with a possible redemption at the end of the first quarter after subscription – just like in the previous series.
With regard to the interest rate, the rules specify that it is fixed taking into account the average three-month Euribor value “observed over the previous 10 business days, rounding the result to the third decimal place”.
This formula cannot result in a base rate below 0% or above 2.5%.
Based on the three-month average Euribor (which rose from 3.179% in April to 3.372% in May), this new series starts selling this Monday at a gross rate of 2.5%.
“Series F” comes with a persistence surcharge that increases during the subscription period, up to a maximum of 1.75%, and is added to the base rate. So the persistence premium starts at 0.25% between years 2 and 5, increases to 0.50% from years 6 to 9, and to 1% in years 10 and 11 . For those who retain CA certificates, the persistence premium will increase to 1.50% in years 12 and 13 and peak at 1.75% in the last two years of the term.
According to the ruling, there is the possibility of “returning capital and interest capitalized on the 15th anniversary of the subscription value date”, which is “credited to the international bank account number (IBAN) associated with the account opened with IGCP.”
Full or partial redemption is allowed “from the date on which the first term for the payment of interest on the subscription” occurs, that is, after three months.
The rules also state that the maximum number of “series F” certificates in a savings account is limited to 50,000 euros, and this maximum is “accumulated with “series E” certificates. [a que esteve em comercialização até à passada sexta-feira] to a savings account” cannot exceed 250,000 euros.
In addition to these changes, the “F series” is accompanied by another: CA subscriptions are no longer carried out only at CTT or Espaços do Cidadão branches, but are also available “on the physical or digital networks of any financial institution or payments registered with the Bank of Portugal and indicated for this purpose IGCP”.
The suspension of the E series and its replacement by a new one have drawn a number of criticisms from the opposition, namely BE and PCP, who accuse the government of giving in to banks or doing them a favor.
The accusation was dismissed by Finance Minister João Nuno Méndez in a statement to reporters on Saturday, in which he responded to criticism and said “there was no concession to the bank.”
The Communists asked Secretary of State João Nuno Méndez to hear him out in the Assembly of the Republic.
Author: Portuguese
Source: CM Jornal
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