Fixed-term deposit with additional interest linked to gold price index
Deposit distribution period: 01 August 2017 - 11 September 2017 (inclusive)
The additional interest will be payable only if the additional interest payment terms and conditions are met, when the value of the financial assets (gold price index in euro) to which the additional interest on the fixed-term deposit is linked, on the closing date, on 11 September 2020, will be above the required minimum percentage threshold baseline set on 11 September 2020.
Initial Value of Euro Gold Index, to which the Term Deposit Additional Interest is linked, on 11 September 2020 is:
| Financial assets | Initial value | Interim value as of 30/06/2019 |
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| Index of gold price in euro (XAUEUR Currency) | 1112,99 | 1239,398 |
Please be reminded, the payment of additional interest will depend on changes in financial assets.
Main terms and conditions
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Deposit type |
Fixed-term irrevocable |
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Deposit maturity |
14 September 2020 |
Minimum deposit amount |
1 000 EUR |
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Deposit currency |
EUR |
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Fixed annual interest |
0.6 % |
Additional interest |
For the entire deposit period, depending on additional interest payment conditions:
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Additional interest payment terms and conditions |
4.0 per cent additional interest is payable if the financial asset value of the financial asset at the closing date is 10 per cent but no more than by 30 per cent higher than the financial asset value of that financial asset at the date of initial value determination. 8.0 per cent additional interest is payable if the financial asset value of the financial asset at the closing date is by 30 per cent higher than the financial asset value of that financial asset at the date of initial value determination. Important! If the value of the financial asset at the closing date is lower or it has increased by less than 10 per cent, compared with the date of the initial financial asset value determination of the financial asset, the additional interest will not be paid to the Depositor. |
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Financial asset |
Index of gold price in euros: XAUEUR Curncy2 |
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Financial assets initial valuation date |
11 September 2017 stock trading closing price |
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Financial assets final valuation date |
11 September 2020 stock trading closing price |
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Interest payment method |
At deposit maturity (14 September 2020) |
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Deposit insurance |
Standard (deposit and fixed interest up to EUR 100 000 are covered by State Company Deposit and Investment Insurance under the conditions provided for in LR law on deposit and liabilities for investor insurance). More at www.sb.lt |
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Deposit automatic renewal |
Not available |
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Withdrawal of a part of the deposit
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Is available for natural persons (i) in the case of the special circumstances included into the list of special circumstances available at www.sb.lt and (ii) after withdrawal of a part of the deposit, the Deposit account shall contain the Minimum deposit amount. |
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Deposit termination prior to its maturity |
Termination is possible only for natural persons in the case of special circumstances. |
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1 The exact additional annual interest rate will depend on the date the deposit will be placed.
2 The XAUEUR Currency Index is determined using the GOLDLNPM Index converted into EUR currency applying the Reuters (WM) rate.
Why additional interest is linked to Gold Index?
The additional interest of Deposit is tied to the gold price index, expressed in euros. Both stock, bonds and real estate markets have generated quite high returns over the last few years, and people are increasingly cautious about the current potential of these markets, due to the sharp rise in prices and high investor assets in these markets.
Given the uncertainties of the financial market, in order to protect the accumulated assets, market players begin to look for alternative investments, one of which is gold. Gold is often referred to as the best protection against depreciation of money (currently, the money volume in the market is extremely high, inflation expectations are rising), and protection is possible if prices on financial markets start falling. All these assumptions make it possible to expect a positive change in the price of gold.
What determines the changes in Gold Price?
The dynamics of the gold market is somewhat more complex than of the most other metals, as its use covers several areas: investment (including bank reserves), jewellery industry and the electronics industry. In terms of investment, the demand for gold is always boosted by insecurity in global financial markets, and inflation and interest rates also play a role. Also, the supply/demand balance is very much affected by the change in the level of gold reserves of central banks: by increasing or decreasing the amount of gold reserves available to the state, it is bought or sold on the market.
The jewellery industry takes on average about half of the demand for gold, and Asia's largest countries, China, India and others, are creating the highest demand for gold in this segment. Therefore, the economic development and livelihoods of these countries are of great importance for the demand for gold.
An important part of gold is also consumed in the electronics industry and in medicine. Like all other industries, the electronics industry is cyclical, so the general economic trend has an impact on the price of gold.
Since 2000, the average annual gold return in euros has reached almost 8 per cent.
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Following the Law on Insurance of Deposits and Liabilities to Investors of the Republic of Lithuania deposits with Šiaulių Bankas AB are insured in the state company Deposit and Investment Insurance. See more.