OP Capital Redemption Contract (OP Kapitalisaatiosopimus)

Capital redemption contract for long-term saving and investment

1

Build your wealth with a capital redemption contract

Do you have plans or goals for the future for which you would like to build up wealth? OP Capital Redemption Contract is a unit-linked capital redemption contract for long-term saving and investing. It is suitable for both new and experienced investors.

2

Wide range of investment products and free switches between investments in the online service

You can pick mutual funds and investment baskets for your capital redemption contract from our wide range of products. OP Capital Redemption Contract lets you diversify your savings and switch to low-risk investment products at any time, for example. When the markets or your goals change, you can always change your investments free of charge in the online service. You only pay taxes on capital gains when you withdraw funds.

3

As an OP cooperative owner-customer, you can earn OP bonuses with savings

You can start saving with 100 euros a month, for example, and change the amount depending on your situation. As an OP cooperative bank owner-customer, your savings also earn you OP bonuses that can be used to pay insurance premiums and service fees.

Book an appointment

What is the OP Capital Redemption Contract (OP Kapitalisaatiosopimus)?

Are you wondering what a capital redemption contract is and whether it would be good for you? OP Capital Redemption Contract is a unit-linked capital redemption contract for long-term savers with an investment horizon of at least three years. It is an insurance contract, but it is not a traditional insurance policy that provides compensation for accidents, for example. A capital redemption contract does not involve an insured person or a separately appointed beneficiary.

An insurance contract forms a wrapper. For an investment option, you select different investment products suitable for you, such as funds. The development of the savings follows the performance of the investments selected for the capital redemption contract. One of the advantages of saving through insurance is the capital redemption contract’s taxation: you can switch between investments inside the insurance wrapper without paying tax on capital gains. The returns are liable to tax only when you withdraw funds from your insurance. Along the way, turbulences may occur in the investment market, or your life situation could change and cause you to alter the investment instruments you selected. Within a capital redemption contract, it’s easy and free to change investment options through our digital services.

The maximum period of validity of a unit-linked capital redemption contract is 30 years. When the saving period ends, the funds accrued in the savings agreement are paid to you. Of course, you can withdraw funds at any time during the capital redemption contract’s period of validity.

One capital redemption contract – plenty of flexibility

You can save a monthly sum, make larger investments at once or both
You can raise or lower the amount you save monthly at any time, make additional investments or take a break from saving.
You can also withdraw all or some of your savings at any time. There are no restrictions to the number of withdrawals.
OP Capital Redemption Contract is valid for 30 years or until you turn 100 years of age, but you can also terminate the agreement earlier.
We offer both high-risk, high-yield investment products and options for more conservative investors. If your circumstances change, you can easily switch to other investments that match your new needs.

Wide range of investment products

Select investments from our wide range of options. You can choose different funds and investment baskets for your capital redemption contract, including:

OP Premium investment baskets
Responsible investment funds
Saver's funds
Index funds
OP's wide selection of as many as 50 investment funds

Investment products for insurance savers

As an insurance saver, you have access to a diverse selection of investment products. Log in to see the range of investment options and the price information.

Costs of a capital redemption contract

The costs consist of the service fees of the capital redemption contract and the expenses of the investment products. In exchange, you get access to our wide range of products, which we are actively improving. We are continuously introducing interesting new investment products to our selection.

1. Medical treatment expenses

Service fee of 0.4% per year up to €94,800
Service fee of 0.2% for an amount exceeding €94,800
Service fee of at least €1.90 per month from the beginning of the fourth year
No separate fees are charged on payments you make

2. Investment product expenses

The expenses of the investment products chosen for the capital redemption contract vary and are reflected in the value of your savings daily. The annual expenses of investment products typically range from 0.15% to 2.5%, depending on the product.

3. Withdrawing savings

You can withdraw savings from your capital redemption contract free of charge once your agreement has been valid for three years.

See the list of service charges and fees (in Finnish) (pdf)

Taxation on capital redemption contract

How is a capital redemption contract handled in taxation? You only pay taxes on return for a capital redemption contract when you withdraw savings. If you perform a partial surrender before the plan matures, the relative proportion of the assets to be withdrawn is considered taxable capital income, which at the time of payment corresponds to the share of returns from the amount of the insurance assets.

A capital redemption contract in the event of death

A capital redemption contract does not have a beneficiary and does not end upon the policyholder’s death. In the event of death, the capital redemption contract is transferred to the estate, and the distributees can continue investing in the policy, withdraw part of the funds or terminate the policy entirely. 

If a capital redemption contract has been received as an inheritance or by a last will and testament, the heir or the beneficiary under a will must pay inheritance tax on the capital redemption contract.

Also check out OP Unit-linked Insurance

Are you interested in saving through insurance but looking for a more long-term solution than the OP Capital Redemption Contract? OP Unit-linked Insurance is an endowment policy that is not limited to a maximum period of 30 years but is valid until you turn 100 years of age.

When the policy expires, the funds are paid to you or another beneficiary you have appointed. Unit-linked insurance also includes cover in the event of death. This means that the funds included in the unit-linked insurance will be paid to the beneficiaries of your choice in the event of death.

Do you wish to increase your company’s wealth with a capital redemption contract?

Are you interested in saving through insurance, but would rather increase your company’s wealth than your own? The investment solution for businesses is a capital redemption contract for companies and institutions that allows funds to be invested easily and flexibly.

Learn about the investment solution for businesses

Frequently asked questions about capital redemption contracts

What is a capital redemption contract?

A capital redemption contract is a unit-linked saving through insurance contract for long-term saving and investing. A capital redemption contract does not involve an insured person or a separately appointed beneficiary.

You can choose different investment options for your capital redemption contract, such as funds and investment baskets. The value performance of the investment options you selected defines the development of your savings.

For how long is OP Capital Redemption Contract valid?

OP Capital Redemption Contract is valid for 30 years or until you turn 100 years of age. You can also terminate the policy early at any time.

Is OP Capital Redemption Contract suitable for estate planning?

Capital Redemption Contract may be suitable for estate planning when you want the distributees of your estate to have the option to continue investing or time the withdrawal of funds depending on the markets, for example. A Capital Redemption Contract does not include a beneficiary and does not end upon the policyholder's death. In the event of death, OP Capital Redemption Contract is transferred to the estate, and the distributees can continue investing in the policy, withdraw part of the funds or terminate the policy entirely.

If you want to personally appoint the beneficiaries of your savings in the event of your death, OP Unit-linked insurance is a suitable option for you.

Learn more about OP Unit-linked insurance

Does a capital redemption contract contribute towards OP bonuses?

If you are an OP cooperative bank owner-customer, your savings will contribute towards OP bonuses.

You will earn 0.35% of OP bonuses from funds linked to insurance assets. *

* The principles contributing towards OP bonuses from funds linked to insurance assets will be harmonised with direct investments. As of 1 January 2025, the following funds linked to insurance assets will no longer contribute towards OP bonuses: third-party funds such as JP Morgan funds, structured loans and institutional class funds such as OP-World III A.

OP bonuses are used to pay the bank’s service charges and insurance premiums.

A capital redemption contract’s other benefits for owner-customers:

Begin saving through insurance free of charge.
Switch between investments, invest additional funds, and change your payment and investment plan for OP Capital Redemption Contract free of charge in our digital services.

Is a capital redemption contract a security?

A capital redemption contract is not a security. The insurance company owns the investment products you selected for the insurance. The policyholder only has the right of claim from the insurance company based on the contract.

OP Capital Redemption Contract (OP Kapitalisaatiosopimus) product description, insurance terms and conditions, charges and fees, and Key Information Document (in Finnish)

OP Capital Redemption Contract (OP Kapitalisaatiosopimus) charges and fees (in Finnish) (pdf)