Polish Bank Zachodni WBK (BZ WBK), a subsidiary of Santander since 2011, has seen the volumes of its structured products skyrocket during the summer.

The latest three series of its FX-linked deposit range which includes three variations of each product, sold almost PLN300m (€70m). All three versions are linked to either the EUR/PLN or USD/PLN exchange rate.

The first series of Lokata strukturyzowana was launched in February 2011 with an average volume of PLN6m (€1.4m), while the three products striking during the summer holiday months raised an average of PLN32.5m (€7.7m) each. The highest volume of PLN51m (€12m) was raised by Lokata Strukturyzowana EUR Złoty Stabilizacja 48.

Structured product manager at BZ WBK, Piotr Napierała, told SRP that the increased demand from investors is a reflection of the current interest rate levels.

"The standard five-month deposit with the same minimum investment amount of PLN3,000 (€750) required for a structured deposit at the bank would earn clients 2.57% annually.

Lokata Strukturyzowana EUR Złoty Stabilizacja 48, which is linked to the EUR/PLN exchange rate, offers a potential growth of 4.5% per annum provided that the exchange rate on the day of maturity is within the boundaries of +/- PLN0.1 (€0.02) from its initial level.

The remaining two products from this series, Lokata Strukturyzowana EUR Złoty Plus 48 and Lokata Strukturyzowana EUR Euro Plus 48, can earn up to 7.5% per annum providing that the PLN or EUR rates have strengthened by at least PLN0.1 (€0.02) but no more than PLN0.35 (€0.08) from their initial levels, respectively.

In February, Bank Zachodni began offering its structured deposit range through approximately 300 outlets which were previously owned by Kredyt Bank, following a merger of the two banks.

"The initial joint sale wasn't so impressive. As a result of falling market interest rates, we moved from 3-month to 6-month strategies which translated into even lower sales than those in late 2012 in former Bank Zachodni branches," said Napierała. "However, further decreases in market rates were favourable for structured deposits, as the alternative cost of a standard deposit has been relatively low in the client's perception."

BZ WBK is currently offering three new deposits linked to the PLN/EUR exchange rate from its 50th series.