Private BUSINESS PRIVATE BANKING ABOUT THE BANK C REWARDS
Private
BUSINESS
PRIVATE BANKING
ABOUT THE BANK
C REWARDS
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  1. Private customers
  2. How to start investing in funds, shares and bonds?
  3. Debt securities

* AS Citadele Banka does not provide investment portfolio management services, fund and asset management services, individual consultations on investing in financial instruments or recommendations regarding the capital market. These services are offered by another company in the Citadele group: IPAS CBL Asset Management.

Capital investment options


Debt securities or bonds are released into circulation by governments, local councils or businesses in order to borrow money from investors. The bond confirms the issuer's debt obligations towards the bond holder-investor. Usually, bonds have a fixed interest rate and maturity date, which gives the investor a clear idea of the debt repayment term and interest income.

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These are a type of fund in which investments are made into several debt instruments simultaneously. The fund is managed by a professional manager, who selects the most suitable debt instruments for the fund's target market and aims to ensure that the fund operates effectively with maximum returns on investments.

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3 simple steps to start investing


Sign an agreement with Citadele bank


If you are a Citadele customer, sign an agreement on the opening of a financial instrument account and the enabling of transactions with financial instruments (in accordance with which Citadele will open a financial instrument and financial instrument cash account for you). This is an account into which the securities you purchase will be transferred, as well as the money you intend to use for financial instrument transactions.
Sign agreement can be concluded as follows:

  • The Citadele online bank: Investments > Create New > Application for agreement on financial instruments accounts and transactions.
Log in to online bank
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Transfer funds to your financial instrument cash account


Transfer funds to your financial instrument cash account in the way that's easiest for you:

  • The Citadele online bank: Payments > Transfer between own accounts.
  • The Citadele mobile app: Pay > Between accounts.
  • Additional options, you can also exchange currency within your financial instrument account. You can do this through the Citadele online bank: Payments > Currency exchange.
Log in to online bank Log in to mobile app
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Submit a security purchase/sale order

  • The Citadele online bank: Investments > New order > Order for investment fund unit purchase or redemption or Order for stocks purchase/sale, or Order for bond purchase/sale.
  • Worth to know – if you wish to invest in shares traded on the United States markets, you will also need to fill in and submit a W-8BEN tax form. Find out more by calling a Citadele broker on +370 66530742.
Log in to online bank Call broker
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What are the risks in investing in debt instruments?

The main risks when investing in debt instruments are credit risk, interest rate risk, market risk and issuer risk. Compared with a well-diversified investment fund, investments in debt instruments require a comparatively larger initial investment. This type of investment offers a stable future income; however, investing in certain debt instruments may be riskier than investing in a diversified debt security fund portfolio. You can reduce the risks by:

  • When planning long-term investments, choosing debt instruments with a higher investment rating, such as government bonds.
  • Making your portfolio more diverse with different types of debt instruments, if your investment portfolio size allows, or by choosing to invest in debt instrument funds.
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Do I have to pay taxes?

Yes, you must pay income tax on capital gains and on capital (dividend) income.

How do I open a financial instrument account?

Existing bank customers can open a financial instrument account. They must have a current account or card account open. We recommend also activating the online bank. 

To open a financial instrument account, you must read the relevant documents, terms and conditions and sign an application to open a financial instrument account and transaction agreement. 

The easiest way to do this is for free through the Citadele online bank under Investments (New Order > Application to open a financial instrument account and transaction agreement). 

If necessary, you can also sign an agreement at any Citadele branch.

Can I receive a consultation from the bank on the best investments?

The bank does not give recommendations on the most suitable investment types, and does not recommend specific financial instruments, as only the customer can adequately evaluate and make decisions on their investments, needs and the suitability of specific financial instruments for their aims and requirements.

How much do financial instrument transactions and financial instrument account servicing cost?

Financial instrument purchase and sale transactions are subject to brokerage commissions which are calculated based on the type of financial instrument and the size of the transaction, but please bear in mind that there is a minimum commission fee per transaction, and in some markets there may be an additional fee for transactions. You can see brokerage commissions on our Price List under Trading. 

Meanwhile, the following commission fees apply for financial instrument account servicing: 

  • A monthly fee for holding financial instruments, taken in the customer’s chosen base portfolio currency.
  • A commission fee for the customer’s chosen transaction (receiving, transferring or deregistering securities), which is taken in the transaction currency.
  • A fee for processing orders for corporate events or tax certification documents for certain financial instrument types. 

You can see the full list of service prices on the Price List under Accounts administration. 

Commission fees are taken automatically from the money in the customer’s financial instrument account. Customers must ensure that they have a sufficient balance, otherwise there may be a commission fee for a negative balance.
 

How do I submit an order for a financial instrument transaction?

You can submit an order at any branch of the bank or remotely through the online bank.

What is a convertible bond?

A company may issue convertible bonds, which the bond holder has the right to exchange for shares of this company within a certain time period.

More questions
Do I have to pay taxes?

Yes, you must pay income tax on capital gains and on capital (dividend) income.

How do I open a financial instrument account?

Existing bank customers can open a financial instrument account. They must have a current account or card account open. We recommend also activating the online bank. 

To open a financial instrument account, you must read the relevant documents, terms and conditions and sign an application to open a financial instrument account and transaction agreement. 

The easiest way to do this is for free through the Citadele online bank under Investments (New Order > Application to open a financial instrument account and transaction agreement). 

If necessary, you can also sign an agreement at any Citadele branch.

Can I receive a consultation from the bank on the best investments?

The bank does not give recommendations on the most suitable investment types, and does not recommend specific financial instruments, as only the customer can adequately evaluate and make decisions on their investments, needs and the suitability of specific financial instruments for their aims and requirements.

How much do financial instrument transactions and financial instrument account servicing cost?

Financial instrument purchase and sale transactions are subject to brokerage commissions which are calculated based on the type of financial instrument and the size of the transaction, but please bear in mind that there is a minimum commission fee per transaction, and in some markets there may be an additional fee for transactions. You can see brokerage commissions on our Price List under Trading. 

Meanwhile, the following commission fees apply for financial instrument account servicing: 

  • A monthly fee for holding financial instruments, taken in the customer’s chosen base portfolio currency.
  • A commission fee for the customer’s chosen transaction (receiving, transferring or deregistering securities), which is taken in the transaction currency.
  • A fee for processing orders for corporate events or tax certification documents for certain financial instrument types. 

You can see the full list of service prices on the Price List under Accounts administration. 

Commission fees are taken automatically from the money in the customer’s financial instrument account. Customers must ensure that they have a sufficient balance, otherwise there may be a commission fee for a negative balance.
 

How do I submit an order for a financial instrument transaction?

You can submit an order at any branch of the bank or remotely through the online bank.

What is a convertible bond?

A company may issue convertible bonds, which the bond holder has the right to exchange for shares of this company within a certain time period.

More opportunities

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Investment funds

One of the most popular financial instruments, which offers the chance to maintain and even grow the value of your savings. Service provided by Citadele subsidiary CBL Asset Management.
Learn more
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Short terms savings

A way of saving for your goals using the benefits of the Savings account and Term Deposits. Apply through the online bank and achieve your goals.
Learn more
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Personal life insurance

Life insurance can provide your family with protection and peace of mind should anything unexpected happen to you. In the event of an accident, your family could use an insurance benefit to overcome various financial difficulties. Service provided by Citadele subsidiary AAS “CBL Life“.
Learn more

In accordance with Republic of Latvia legislation, financial instruments are held separately from other bank assets, therefore the customer does not take on the risks of a situation where a bank is unable to operate, causing the bank to become bankrupt or insolvent, as well as of direct illegal activity aimed at the bank.

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