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
Securities offered in our range of securities are fixed offers (net prices). This means, the price stated will not be increased by any additional charges - with the exception of foreign currency expenses. Due to the instant execution of purchase orders from the range of available bonds, these orders cannot be cancelled.

From nominal value to settlement amount
The settlement amount includes the nominal amount, offer price, 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
Return is the expected annual yield of a security before capital gains tax and in consideration of the purchase and redemption price. Price fluctuations are possible during the term, thus a premature sale can lead to price losses. A return stated in the netbanking range of securities only applies if the security is retained to maturity.
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.