Financial Accounts and Deposits

Another way to invest in Treasury Securities is through the "Financial Accounts and Deposits" on Treasury Securities offered by financial institutions.

Through Financial Accounts and Deposits, financial institutions receive funds and immediately invest them, on behalf of their customers, in Treasury Securities. The institution, on a regular basis and in short periods of time, is committed to purchase and immediately sell the necessary Treasury Securities to the holders of the financial account or deposit. When the transaction matures, it is automatically renewed, unless the investor decides to cancel the agreement. As a result, financial accounts and deposits are no more than a string of successive repos governed by one single contract.

 Depending on the maturity of the successive repos and on the way in which the Treasury Securities are allocated to investors, these instruments may be split into two categories:

  •  If the maturity of the successive repos is less than 15 days or the Treasury Securities supporting the account are allocated to the different investors in co-ownership -each holder of an account owns a portion of the aggregate amount of securities purchased by the bank- the product is denominated a "Financial Account".
  •  If the maturity of the successive repos is above 15 days and the securities are allocated to each holder on an individual basis, the product is known as a "Financial Deposit".

Finally, the features of these accounts -such as the type of Treasury Securities supporting them, the minimum disbursement, the availability of funds, the return and so on- differ from one institution to another, but must always appear in the contract signed by the investor.