Securities Income Program - Banco Bursatil, High interest savings account, Low income housing programs, Investing in stocks and share

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Banco Bursatil
Private, Descentralized and Digital Bank
Save smarter, faster than ever.

Save smarter, faster than ever.
Save smarter, faster than ever.
Save smarter, faster than ever.

What is the Securities Income Program?

In short, this program is securities lending. That means you give us the right to borrow certain in-demand stocks for a short-term purpose to loan out to other investors, and in exchange, we’ll pay you interest. It’s the potential for extra cash with minimal effort.
Sit back and earn.
We’ll deposit any of the daily interest your shares make to your account in the middle of each month. This is in addition to the value of any dividends earned.

No long-term commitment.
If you wish to stop participating in the program, you’re able to unenroll at any point in time with no penalties.

We’ll do the work.
All you need to do is consent to enroll, and once you’re eligible, we’ll see if any of your securities are in demand. If so, they’ll be automatically lent out in exchange for interest.

Sell anytime, no restrictions.
While enrolled in this program, you maintain full ownership of the securities on loan at all times. If you decide to sell, we’ll simply end the borrowing agreement for that particular stock.

What you should know.
While this program is generally hassle-free, and entirely fee-free, there are a few things to keep in mind.
Borrowed shares
Enrollment doesn’t guarantee that your shares will be borrowed. Typically, securities that do get borrowed are in high demand or limited supply.
When we borrow your security, we must provide collateral for the loan in the form of the security’s cash value — this gives protection to the trader. Because of this, for shares that do get borrowed, you’ll receive cash instead of your regular dividend payment for the duration of the loan. This may be taxed differently. Talk to your tax advisor if you have concerns.
Proxy voting rights
You give up proxy voting rights while your security is on loan. Though this won’t be of concern to most investors, it may be of greater concern if you’re a larger institutional investor.
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