Notes on selection of bonds in netbanking

In netbanking, you can buy bonds directly from our range. The range of products offered is updated continuously and is available on banking days from Monday to Friday from approx. 9:00 am to 6:45 pm, depending on the respective market conditions.

Instant execution for a fixed price
Due to the instant execution, these orders cannot be modified or cancelled.

From nominal value to settlement amount
The settlement amount includes the nominal amount, offer price, fees, accrued interest and capital gains tax (KESt). In the case of interest-bearing securities, the nominal value equals the sum that is repaid upon maturity of the security (100 % at redemption).
The offer price usually deviates from the nominal value, since developments on the interest rate market, demand etc. influence the price of the security (market value).

Accrued interest is the interest that accrues from the last coupon date to the value date of the security purchase. This interest is added to the purchase price because the buyer will receive the interest (minus capital gains tax) for the entire interest payment period on the next coupon date, but is only entitled to such interest as from the time of purchase. 

Return
Price fluctuations are possible during the term, thus a premature sale can lead to price losses. In the case of foreign exchange investments, return depends heavily on the development of the foreign currency's exchange rate. A change in the exchange rate may increase or decrease the return yield generated by the investment.

Tax breaks for residential housing bonds

Exempt from capital gains tax: For private investors who are liable to pay taxes in Austria, up to 4 percent of annual interest income is exempt from capital gains tax, regardless of holding period or first purchase. Income tax and any inheritance tax are covered nevertheless. As a result, return is higher than from other securities with equally high interest.

Taxation

All information is provided without consideration of investor tax implications. Please ask your tax advisor if you have questions regarding the taxation of your investment.