Profit ShareAs an owner-customer, you can invest in your bank and earn competitive interest on your investment.
A Profit Share is an investment in your OP cooperative bank’s equity capital. By subscribing for Profit Shares, you will strengthen your bank’s capital adequacy and support local business. So we will seek to pay you the highest possible interest rate.
What is a Profit Share?
- Profit Shares form an equity contribution to your own OP cooperative bank as referred to in the Co-operatives Act. It strengthens the bank’s capital adequacy and gives you the chance to benefit from its success.
- Each year, we seek the best, most competitive interest rate possible for Profit Shares. 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 is set by each OP cooperative bank.
- When investing in Profit Shares, you should be prepared for an investment period of at least three years.
- A Profit Share is not a deposit and is not protected by the deposit guarantee.
How can I invest in Profit Shares?
- As an OP cooperative bank owner-customer, you can invest in your bank’s Profit Shares during their subscription period.
- Please note that each bank has its own subscription periods. See your bank’s website to check its Profit Share issue dates.
- Subscribe by visiting your OP cooperative bank branch, booking an appointment or calling OP Customer Service at 0100 0500 (Mon–Fri 8–16, local/mobile network rate).
- Each OP cooperative bank independently decides whether corporate and institutional customers can become owner-customers and invest in Profit Shares.
What else should you remember when investing in Profit Shares?
- The aim is to pay annual interest, based on the return target, from the bank’s distributable surplus in accordance with the Co-operatives Act. However, this cannot be guaranteed.
- The surplus may also exceed the overall interest paid on the Profit Share.
- Taxation of Profit Shares is lighter than for many other investments. The interest is considered capital income for personal taxation purposes. Taxation is based on each customer’s circumstances and can change.
- Profit Shares do not bring OP bonuses.
- For information on taxation, corporate customers should see ”Osuuskunnan ja sen jäsenen verotuksesta” (in Finnish and Swedish) on vero.fi.
- You can dispose of your Profit Shares by terminating them. The repayment period for Profit Shares is 12 months from the end of the termination year.
- Profit Shares are not capital-protected products and their repayment is subject to certain conditions. You may lose the capital invested since, for example, under its bylaws the bank has the right to refuse to refund the shares. If an OP cooperative bank cannot fully refund Profit Shares, under its bylaws it has the right to make such a refund afterwards, during the following five financial years.
- Profit Shares cannot be freely transferred. They can only be transferred to another owner-customer of the OP cooperative bank in question. Profit Shares are not quoted on a secondary market.
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.
In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from
- funds in accounts
- 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.
Any investment involves the risk of losing the invested capital either in part or in full or never receiving the expected return. The return target cannot be used for making reliable assumptions about future returns. The return target does not take into account tax, fees or other costs. The Profit Share is provided by OP cooperative bank.