Savings certificate

Issued by a bank, a savings certificate is a debt instrument with a predetermined term and interest rate. Investing in this product means you lend money to the bank, which undertakes to pay back all of the invested capital at maturity, as well as pay an annual coupon. It is governed by the laws of Belgium.

Solvency risk: this product is covered by the Belgian deposit protection scheme, subject to certain conditions. This protection would be triggered if KBC Bank was no longer able to pay back requested deposits and currently amounts to a maximum of 100 000 euros per person for aggregate deposits held with KBC Bank (including savings certificates), subject to certain conditions. This maximum of 100 000 euros (or the equivalent in foreign currency) per person and per bank applies to all of the deposits and investments covered by this deposit protection scheme. You can obtain a free copy of the ‘Protection of deposits, life insurance and financial instruments in Belgium’ brochure from your bank branch or at www.kbcbrussels.be/depositprotection.

In the event of KBC Bank’s insolvency (e.g., if it goes into bankruptcy), you run the risk of losing any deposits (including savings certificates) you have over 100 000 euros, or their amount could be reduced or converted into shares (bail-in). Individuals or companies with an annual turnover of up to 50 million euros can avail themselves of a privilege regarding the unprotected portion of their assets, i.e. it will not be subject to reduction or conversion into shares.

There is also a risk that all or some of the capital and coupons or capital gains could be lost, or that securities could be converted into shares if the issuer or guarantor is ordered to restructure by the competent supervisory authority. In practice, this means you run the risk of losing money if KBC Bank were to experience financial difficulties.

However, guarantees are in place (such as the deposit protection scheme for amounts up to 100 000 euros) to provide you with optimum protection.

Fluctuation in the value of the savings certificate: if you sell your savings certificate before maturity, bear in mind that the price may then fluctuate due to market volatility and interest rates. You will also have to pay exit charges.

Liquidity risk: if you want to sell your savings certificates before maturity, your bank may buy them back (please note that it is not obliged to do so). The value you get then depends on market interest rates and the costs charged by the bank. It is by no means certain, therefore, that you will recover your initial capital. Savings certificates are not traded on an exchange.

Inflation risk: sustained price increases may result in the amount deposited losing value.

There are no entry charges, management fees or custody fees. There are no exit charges either if you keep the savings certificate until maturity. If you cash in your savings certificate before maturity with the permission of KBC Bank, you pay a charge equal to no more than 0.75% of the outstanding capital (the size of this redemption charge can always vary). Moreover, the value you get then depends on market interest rates. It is by no means certain, therefore, that you will recover your initial capital.

The income is subject to a Belgian withholding tax of (currently) 30% on the gross amount of interest. Some investors may qualify for an exemption if they meet certain conditions. This tax treatment applies to individual investors subject to Belgian personal income tax. The tax treatment depends on your individual circumstances and may change in the future. Stock exchange transaction tax does not apply because the savings certificates are not traded on any exchange.

KBC Brussels is not currently offering any savings certificates.

If a significant new factor, material mistake or material inaccuracy relating to information in the base prospectus that could have an impact on the rating of the securities is identified between the time the base prospectus is approved and the time the subscription period ends, a supplement to the base prospectus will be published on KBC Bank's overview of issues.

If a supplement or a new base prospectus is published during the subscription period, investors who have already subscribed to this security have the right to withdraw their subscription within three business days of publication. Should you decide to exercise this right, we will assist you appropriately.

If you opted to receive information electronically, we will contact you that way. If you chose not to receive information this way, we recommend that you keep an eye on our website to see whether a supplement has been published. If you decide after all to receive this information electronically, you can always request it through one of our digital channels.

Your branch is your first point of contact for any complaints you may have. You can also contact our complaints department: KBC Complaints Management, Brusselsesteenweg 100, 3000 Leuven, complaints@kbc.be, tel.: 016 43 25 94. If no agreement can be reached, you have the option of taking your complaint to the external Ombudsman in financial conflicts: ombudsman@ombudsfin.be.