OREANDA-NEWS. In response to market trends and customer demand, Parex banka is increasing its savings product range. From November, with its new subsidiary Parex Life, the Bank will offer a new account called Uzkrajums+, which combines life insurance services with savings, reported the press-centre of Parex banka. 

The new service offers an opportunity to profit from high deposit rates by investing in funds, up to 25% of which is tax exempt whilst providing financial guarantees to the depositor and members of his family.

With the pace of living getting faster and more unpredictable, there is demand for new and sophisticated financial instruments that not only offer additional sources for saving, but also provide a guarantee of stability should anything happen. The new life insurance with savings opportunities being offered by Parex Life is one solution to this.

Raimonds Vesers, the CEO of Parex Life comments: „The life insurance market is rapidly evolving in Latvia. The volume of gross life insurance premiums during 2005 was LVL 11 million, in 2006 it reached LVL 19 million, and in the first nine months of this year it has reached more than LVL 30 million. The Latvian market still has very attractive growth opportunities in this area, especially when compared to other countries within the European Union. The interest in accumulating savings in Latvia is driven by the State tax policy, as well as by a “relief” on the real estate market.”

Uzkrajums+ not only offers an opportunity to insure a person’s life, but also to profit from investing in the funds offered by Parex Asset Management (PAM), the leading investment management company in the Baltics. It is possible to deposit money in three currencies – Latvian Lats, US dollars and Euros. The minimum deposit amount is LVL 20/EUR 30/USD 40. Moreover, the volume of deposit may vary depending on the situation: as people can increase or decrease the level of their deposits to reflect their personal circumstances.

The new product Uzkrajums+ also offers significant tax allowances of up to 25% of the deposited amount. The state offers the users of this new service an opportunity to receive a 25% income tax refund off the total deposited amount, provided it doesn’t exceed 20% of an individuals  annual gross salary.

Taking into account the current labour force situation in Latvia, we invite employers to motivate their employees by offering them this new life insurance service. Insurance with savings is also profitable, as the employer is not required to pay social tax or corporate income tax for the deposited funds made by employees, provided they do not exceed 10% from the gross salary of the employee.
 
About Parex banka:
With EUR 4,3 billion in assets, Parex banka is one of the leading banks in the Baltic States, offering integrated client services, including lending, payment card services, leasing, asset management and securities brokerage. The Bank is represented in 15 countries through its wide network of representative offices, branches and subsidiaries, including a subsidiary in Switzerland, AP Anlage und Privatbank AG.

Parex banka is rated Baa3 by Moody's Investors Service, BB+ by Fitch Ratings and BBB by Capital Intelligence.