Savings certificate

Issued by a bank, a savings certificate is a debt instrument with a predetermined term and interest rate. You lend your money to the issuer, which undertakes to repay up to all this amount at maturity, including an annual coupon payment.

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 (including savings certificates) held with KBC Bank, subject to certain conditions.

You can obtain a free copy of KBC Brussels’s ‘Protection of deposits, life insurance and financial instruments in Belgium’ brochure from your KBC Brussels branch or from www.kbcbrussels.be/depositprotection.

In the event of KBC Brussels’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 the amount could be reduced or converted into shares (bail-in). 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, there is a risk of losing money should financial problems arise at KBC Brussels. Even so, safeguards have been built in, such as the protection provided for amounts up to 100 000 euros, to ensure you are covered as much as possible.

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 or exit charges if you keep the savings certificate until maturity and there is no custody fee either at KBC Bank.

If you cash in your savings certificate before maturity with the permission of KBC Bank, you pay a charge equal to 0.75% of the outstanding capital. However, the size of this charge can vary.

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 criteria. 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.

KBC Brussels is not currently offering any savings certificates.

• Base prospectus
• Issue summary
• Final terms
• Product fact sheet
• Deposit protection information

Despite the fact that the FSMA has approved the prospectus, it does not mean to say that they recommend investing in a savings certificate. If new information (a supplement) is published and you have already subscribed to a savings certificate in that period, you have two business days to withdraw your subscription.

Your branch is your first point of contact for any complaints you may have. If no agreement can be reached, please contact KBC Complaints Management, Brusselsesteenweg 100, 3000 Leuven, complaints@kbc.be, tel. + 32 16 43 25 94 or the external ombudsman in financial conflicts: ombudsman@ombfin.be.

If you cannot find a suitable solution, you can contact the Belgian ombudsman service for financial conflicts: Ombudsfin vzw, North Gate II, Koning Albert II-laan 8 bus 2, 1000 Brussels, ombudsman@ombudsfin.be, www.ombfin.be.