28.10.2011 » Ronaldo promotes a long-term deposit account from BES, in Portugal
Cristiano Ronaldo is one of the most wanted celebrities when it comes to choose a popular figure for promoting any kind of product. The banking and financial areas aren't immune to this marketing phenomenon called Cristiano Ronaldo. A Portuguese bank called BES (Banco Espírito Santo), has a on going sponsorship with CR7 since 2003, on which Ronaldo promotes a few of the bank's premium financial investment products. The latest financial product available on the market that came from this partnership, is a long-term deposit account (savings), which has a 3 year maturity and is called: "Conta Rendimento CR" (Yield account CR).
Watch the making of video from "Conta Rendimento CR", a BES financial product promoted by Cristiano Ronaldo:
Cristiano Ronaldo is the face of one of the latest campaigns launched by BES (Banco Espírito Santo), for their premium 3 years deposit/savings account. This financial product goes by the name of "Conta Rendimento CR" (Yield account CR) and provides an average annual gross rate of 4,83% (for the 3 years period). It pays interests each semester (resulting in a total of 6 payments), and each year it yields a higher rate than the previous one, as a way of encouraging the client to keep the money on the investment for the entire 3 years period. Here's the ladder scheme of this product promoted by Cristiano Ronaldo:
1st year (AGR 3,5%; AIR 2,7475%):
1st semester: 1,75% (AGR); 1,37% (AIR) | 2nd semester 1,75% (AGR); 1,37% (AIR)
2nd year (AGR 4,5%; AIR 2,5325%):
3rd semester: 2,25% (AGR); 1,77% (AIR) | 4th semester 2,25% (AGR); 1,77% (AIR)
3rd year (AGR 6,5%; AIR 5,1025%):
5th semester: 3,25% (AGR); 2,55% (AIR) | 6th semester 3,25% (AGR); 2,55% (AIR)
Average Annual Gross Rate: 4,83% (Before taxes)
Average Annual Interest Rate: 3,794% (After taxes)
Taxes: 21,5%
*AGR = Annual Gross Rate (before taxes)
*AIR = Annual Interest Rate (after taxes)
Learn more about this financial product in BES official website: Cristiano Ronaldo BES (in Portuguese)
Please bear in mind that most of the financial products that are advertised on the TV, newspapers, radio, etc., usually announce their AGR (Annual Gross Rate). This rate isn't deducted from taxes and might mislead investors to make bad decisions. On the scheme we computed above, we made the distinction between the two rates (before and after taxes) for a better understanding of the advantages that this investment promoted by Cristiano Ronaldo offer.
As you may also notice, there's a clear incentive on keeping the investment yielding for the entire period (3 years), since the last 2 semesters present an annual 5,1% interest rate (after taxes), which is almost twice as more of what the invesment yields on the first 2 semesters (2,75% after taxes). Here's a short example, demonstrating step by step how much one could earn from a 1000€ investment on this financial product sponsored by Cristiano Ronaldo:
Initial investment: 1000€
1st semester: 1000€ * 1,37375% = 13,74€ | 1000€ + 13,74€ = 1013,74€
2nd semester: 1000€ * 1,37375% = 13,74€ | 1013,74€ + 13,74€ = 1027,48€
Total earnings after 1 year: 1000€ + 27,48€ = 1027,48€
3rd semester: 1000 * 1,76625% = 17,67€ | 1027,48€ + 17,67€ = 1045,15€
4th semester: 1000 * 1,76625% = 17,67€ | 1045,15€ + 17,67€ = 1062,82€
Total earnings after 2 years: 1000€ + 27,48€ + 35,34€ = 1062,82€
5th semester: 1000 * 2,55125% = 25,51€ | 1062,82€ + 25,51€ = 1088,33€
6th semester: 1000 * 2,55125% = 25,51€ | 1088,33€ + 25,51€ = 1113,84€
Total earnings after 3 years: 1000€ + 27,48€ + 35,34€ + 51,02€ = 1113,84€
The Annual Interest Rates have been converted for semestral rates
Conclusion: Your 1000€ investment would return a total of 113,84€, and both could be withdrawn after the 3 year period. If the investor decides to withdraw his initial investment at any stage before maturity, he will lose the right to earn any further interests at the agreed rates, but will still have the right to receive the initial ammount, as well as the interests earned so far. Below you can watch a video of Cristiano Ronaldo featuring on the promotional video for this financial product investment:
Real Madrid will now play against Real Sociedad this Saturday, for La Liga. You can watch Juventus live stream, Real Sociedad vs Real Madrid, in our Football Live Streams section. The countdown clock timer, displaying the time left for the next Ronaldo game, is shown on the top right corner of all pages. Besides that game, you can also follow the English Premier League next Saturday and watch Everton vs Manchester United and Chelsea vs Arsenal. All streamings are provided from our "Live" section.
Real Sociedad vs Real Madrid kickoff information:
29th of October, 2011:
21:00 (GMT+1) - London (U.K.), Lisbon (Portugal)
22:00 (GMT+2) - Madrid (Spain)
04:00 (GMT+8) - Beijing (Sunday)
12:00 (GMT-8) - Los Angeles (USA)
Sources: ronaldo7.net / investopedia.com / bes.pt
