They promised “up to 29.99%”, they paid… 4.2%. The rate skyrocketed and the client got scraps
It was supposed to be as much as 29.99 percent. profit from the “deposit” when the price of Internetowy Gigant I increases. The price skyrocketed – it soared by as much as 90%. However, the client treated him with taste – the bank paid him only 4.2%. minus Belka's tax. Why? Because bankers cleverly protected themselves against such a situation by introducing additional “blocks” in the contract. The champagne corks popped and the bank's marketing worked brilliantly.
The matter was publicized by one of Bank Millennium's clients on the X social networking site. According to his account, he opened a 24-month structured “deposit” with Internet Gigant I, linked to the share price of Alphabet (Google). On the day of launch, the rate was around $130, and at the end of September 2025 it was around $246. This is an increase of 89%. Despite such a boom, the bank paid the client a minimum coupon: 4.2%. for the entire period. For every 10 thousand PLN is about PLN 420 gross, because you have to subtract about PLN 340 after tax.
Marketing covered up the small print
The documents of Bank Millennium for “Internet Giant I” include a mechanism that worked against the client. First, the share of profits was limited to 60%. rate increase. Secondly, a “150 percent barrier” was built in: if during the investment period Alphabet's price reached or exceeded 150 percent at least once. initial value, the client only received the guaranteed minimum of 4.2%. on the scale of the entire investment. Thirdly, the whole thing was limited by a ceiling “up to 29.99% in 2 years”.
The barrier was breached because the investment rate exceeded 150%. (i.e. $195). This automatically “extinguished” the right to share in the profit and turned the product into a deposit with a minimum, pre-agreed interest rate of 4.2%. (in 2 years). The bank followed the investment regulations – but the average person, seeing the slogan “from 4.2 to 29.99 percent” and the name “deposit”, she may not have read the terms and conditions and was tempted by a potentially high profit.
Let us recall what exactly the bank promised in the materials: a minimum of 4.2%, a maximum of 29.99%. for the entire period and participation 60 percent. in growth, as long as the rate does not “touch” 150%. starting value. The bank's examples clearly show that if the 150% barrier is achieved – ends at 4.2%. regardless of how high the company ultimately grew.
The second important thing: it was not a classic deposit, but an investment product disguised as a deposit. On its website about structured deposits, Bank Millennium writes clearly that it is a combination of a deposit and an investment in the markets and that the profit depends on the underlying instrument and the terms of the contract. This is why the name “deposit” can be misleading and disappointments are probably common.
A structured deposit is not the same as a deposit!
Conclusions for Kowalski:
Firstly, such “combined” deposits must be treated as an investment with a specific interest calculation formula, and not as an unconditional interest. Always check three things: 1) the underlying instrument, 2) barriers/conditions for losing the right to share in profits, 3) maximum payout ceiling. In the case of “Internet Giant I”, these were: Alphabet, 150% barrier, 60% share. and a ceiling of 29.99 percent.
Secondly, the minimum coupon may be weaker than a regular deposit or savings account. 4.2 percent in 2 years it will be approximately 2.1 percent. gross per year. If we also take into account inflation, the real result could have been “eaten” by prices. Conclusion: If you don't understand the pattern clearly, stick to simple products.
Third, read the documents: product presentation and KID. This is where the bank must show scenarios and conditions. In this case, the “barrier exceeded = 4.2 percent” scenario was described before the subscription started.
Fourth, remember about the BFG guarantee: the capital is protected up to the equivalent of PLN 100,000. euro per client per bank, but the interest results from the formula anyway – it may be minimal.
How not to be surprised by a “smart” investment
Remember a simple rule. If the advertising material says “from Ask your advisor to write down on a piece of paper exactly when you will get more than the minimum. If he can't show you a simple scenario, let it go. And if you want peace of mind, choose a standard deposit, savings account or treasury bonds and don't chase “up to 29.99 percent”, which often ends up at 4.2 percent anyway.
