The way a term deposit works is simple: a client assigns a particular amount of money for a definite time period and declares not to pay out this amount before the fixed date. Interest rate for PLN investments is above 6 percent a year. In case of earlier closure, interest is not paid to a client.
According to the Polish tax law, it is obligatory to pay a 19% tax from investments profits. It is so called Belka's tax (from the name of Prime Minister who imposed that tax).
The most popular periods for term investments are 3, 6 or 12 months but banks offer various types of short and long term investments. Interest is usually constant so one knows the amount of money earned by such investment. Banks also offer progressive investments with increasing interest rates .
Similar profits are offered by an insurance investment. It is an investment combined with insurance policy and it is not covered by the Belka's tax. In case of the death of the owner of the investment, the collected amount and interest are paid to a specified person. In case of a bankruptcy of the insurance company, only the half of the resources is paid out. In case of other banking products, repayment of all gathered resources is guaranteed up to 50 thousand EUR.
If one has some savings and does not want to deposit it, one should consider opening a saving account. Supporters of this product state that it combines the best features of a standard account and an investment. One has access to the resources and interest is at reasonable level. Usually, free withdrawal is possible only once a month. In order to pay out your money, you should go to your bank office or make an online transfer to your personal account as most of saving accounts do not provide ATM cards. The cost of subsequent transfers usually amounts to 5-10 PLN or more.
Recently, banks have found a solution to avoid the Belka’s tax. Interests are added every day. In order to avoid paying the tax, a gathered amount cannot be high. In most cases it is the amount of few thousand PLN. In such case, interest can be added and no tax is imposed on profits. However, not only customers have advantages of this solution. Since banks also intend to benefit, interest of such products is a slightly lower compared to standard saving accounts.
Investments can be opened also in other currencies than PLN - USD and EUR in most cases.
Interest is about twice lower than in case of PLN investments.
The comparison of saving accounts.
The comparison of investments:
totalmoney.pl
comperia.pl
e-lokaty.pl
The comparison of insurance investments
