Profit Share

Invest in your own cooperative bank – let's prosper together!

A Profit Share is an investment in your own OP cooperative bank’s equity capital during the validity period of the Profit Share issue. A financially successful cooperative bank with a solid financial standing is a strong local player which offers you a variety of benefits and can pay generous interest on your Profit Shares.

What is a Profit Share all about?

The Profit Share constitutes a long-term equity contribution from the owner-customers of an OP cooperative bank that strengthens the bank’s capital adequacy while offering them an opportunity to benefit from their OP cooperative bank’s success. We aim to achieve competitive annual interest on your investment annually.

  • You can subscribe for Profit Shares if you are an owner-customer and your OP cooperative bank has launched a Profit Share issue. Each bank will independently decide on Profit Share issues and their start and end dates.
  • The 2020 interest target is 3.25 per cent. The expected return may vary every year. The Representative Assembly or Annual Cooperative Meeting decides on the interest payable for each calendar year. 
  • The minimum investment is 100 euros and the maximum investment is set by each cooperative bank.
  • The Profit Share does not constitute a deposit and is not protected by deposit guarantee.

Things to consider when subscribing for Profit Shares

  • The aim is to pay interest on Profit Shares in line with the target return but it cannot be guaranteed. Interest on Profit Shares is paid annually out of the distributable surplus under the Co-operatives Act. A cooperative bank does not necessarily generate a surplus every year. Surplus may also arise more than interest payable on the Profit Share.
  • Taxation of Profit Shares is lighter than that of many other investments. The interest payable on Profit Shares is considered capital income in personal taxation. Corporate customers can check the taxation practices with their own experts on the vero.fi website of the Finnish Tax Administration, subpage “Osuuskunnan ja sen jäsenen verotuksesta” (in Finnish and Swedish).  For additional information on private customers’ taxation, see the Profit Share product description that you can find on this page under Additional information. Additional information on taxation is also available at op.fi or from your bank branch.
  • You can subscribe for Profit Shares if you are an owner-customer and your OP cooperative bank has launched a Profit Share issue. Each bank will independently decide on Profit Share issues and their start and end dates. Each OP cooperative bank will independently decide whether corporate and institutional customers can become owner-customers.
  • You can dispose of your Profit Shares by terminating them. The repayment period of Profit Shares is 12 months from the end of the termination year of the Profit Shares. In practice, it pays to prepare for an investment horizon of three years.
  • Profit Shares are not capital-protected products and their repayment is subject to certain conditions. You may lose the capital invested since, for example, the bank has the right to refuse refunding the shares under its bylaws. If Profit Shares cannot be refunded in their entirety, an OP cooperative bank has the right, under its bylaws, to make a refund afterwards during the next five financial years, after which the right to make such a refund afterwards expires. 
  • Profit Shares cannot be transferred freely, because they can only be transferred to another owner-customer of the cooperative bank. Profit Shares are not quoted on a secondary market.

Learn more about your own OP bank's Profit Share

For more detailed information on the your own bank's Profit Shares and the schedule of the Profit Share issues, visit your own bank's op.fi pages or the branches of your bank. To subscribe for Profit Shares, visit your own OP cooperative bank or call OP telephone service at 0100 0500.

Owner-customer benefits as of 1 January 2021

  • Book-entry account and custody €0: Custody of Finnish and foreign shares and ETFs without monthly charges. 
  • Buy and sell fund units €0: Buy, sell and switch nearly all of our funds without costs and earn OP bonuses by investing in mutual funds.*
  • Benefits from equity trading: 
    • A 1% brokerage fee cap on Finnish and Swedish shares and securities – shares, warrants and ETFs.
    • Brokerage fee 0.05–0.17, i.e. the more you trade, the lower your trading costs. The benefits mentioned above are available on OP-mobile, OP Business mobile and at op.fi (in Finnish for personal customers).
  • New benefit: Equity analyses €0: Free equity and market analysis.
  • Benefits of saving through insurance: Take out an insurance policy, switch between investment instruments and transfer funds free of charge. Earn OP bonuses from unit-linked insurance assets.

*No OP bonuses will accrue from the R2 Crystal Fund nor from institutional series of funds.

OP bonuses

In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from

  • loans
  • funds in accounts
  • purchases you have paid with the OP-Visa credit
  • insurance premiums for home, family and motor vehicle policies.

From 1 November 2020, OP bonuses will accrue from:

  • home loans, secured bank loans, student loans
  • savings and investment accounts
  • mutual fund units and unit-linked insurance
  • non-life insurance bills

The change on 1 November 2020 means that no OP bonuses will accrue from:

  • deposits in current accounts
  • unsecured consumer loans (Flexible Consumer Credit, Special Consumer Credit, One-off Credit and Overdraft Facility)
  • OP hire purchase
  • Purchases paid using OP Visa as a credit card, the balance of credit with interest of OP-Visa and OP-Mastercard cards

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

Ask for more information about your own cooperative bank's Profit Share. Book an appointment with the bank or for an online meeting.