Security

Order an ID card reader please login

In the Internet bank you can access your money any time, anywhere

The advantage of the Internet bank is that it provides quick and convenient communication with the bank

  • bank transactions without having to visit a branch
  • personal discounts and offers from partners
  • interactive consultation solutions
  • many transactions are cheaper when performed in the Internet bank than at a branch

To become a Internet bank user, sign a contract at your nearest branch of Swedbank.

Choose the means of identification that suits you

In order to log in you need to select a means of identification. We recommend that you use your ID card or Mobile ID to log in to the Internet bank. However, you can also use a PIN calculator or your password card.

Mobile-ID

Most comfortable way to log in to bank. One mobile device allows access to bank on mobile, PC, tablet. No need for setup, it just Works. Mobile-ID is not a free service; nevertheless those using it cannot understand how they managed without it previously. Mobile operators deliver Mobile-ID in their branches. Read more about prices and aquiring mobile-ID from mobile operator mobile-ID pages.

All Estonian ID-card and mobile-ID related information is gathered to id.ee environment

PIN calculator

The PIN calculator generates a new password every time, and you can never use the same password twice in a row to enter the Internet bank – so stealing your passwords becomes much more difficult. Request a PIN calculator from a branch of the bank.

PIN calculator user instructions

ID card

In order to use your ID card on the Internet, you have to connect an ID card reader to your computer and it will read the information on the chip of your card. Order an ID card reader from rewards programm:

Order an ID card reader to pick up from Photopoint - 300 points

For the digital signing and decrypting of documents you must have ID card software installed on your computer.

Download the latest ID card software
Decryption and digital signing of documents

Password card

The limit of the transactions you can perform is 200 euros a day. The purpose of reducing the daily limit of password cards is to protect the money in your account. Password cards are easy copy and therefore they are not the most secure means of authentication.

What to do in emergencies?

If you've lost your Internet Banking access codes or your access credentials are compromised, do not hesitate and call us at any time (since our services are available round-the-clock). The Bank will immediately block access to your Internet Banking user account, and no one else will be able to access money in your bank account(s) with our Bank.

  • Private clients Consultation Centre: 613 2222
  • Business clients Consultation Centre: 6 310 310

User rights

In our Internet Banking facility, you can use a number of accounts or select a single account to be used. You can set the use mode for every user and account, limiting the rights of users, e.g. only permitting viewing account information, whereas payments cannot be made.

A company can assign different user rights based on its needs which are divided into profiles: preparation of payments, information, payments and all services (information, payments and agreement concluding). An additional option for payments is double acceptance: another user who has the right to make payments from the same account must always approve payments made by a user if they exceed the amount set by the company.

User limits

You can set daily and monthly limits individually for every user and account. Choose daily and monthly limits that suit your needs and/or the needs of your company. Limits are user-specific, not applicable for every single account. Note that for code card user limits can be below but not above 200 EUR a day. Limits can be modified in any Swedbank branch (make sure you have an identity document with you when visiting branch).

Call-approval limits

You can set limits for call approvals for outgoing payments. If it is exceeded, a bank employee will call the specified contact person and ask for an approval of the payment and its details. Alternatively, your company's representative can call the bank's customer service line and approve the payment upon authorization. Additional approval of the payment will be made by phone. It means that the bank will not execute any payments that exceed the approval limits without approval by the client.

The bank will call you back on weekdays from 9:00 to 18:00. If the employee fails to get in touch with the client, they will try again during the banking day; if they don't succeed, they will try on the next day. If the client is not reached by phone, the payment will be cancelled.

Use the SMS Banking features

Set up being notified by a text messages in case of exceeding outgoing payments and you will receive an SMS alert every time when an outgoing payment exceeds the limit set by you. This way, you will be always up-to-date with your finances or those of your company at any place and time just by the text message.

Browsing session expiration

If you're idle on the Internet Banking site for 15 minutes, you will be prompted to enter the password to continue your Internet Banking session. Time limits protect you in case you forget to log off from the Internet Banking site when leaving the computer.

Blocking user if an incorrect password or PIN has been entered

If an incorrect password has been entered for five times when trying to log on to the Internet Banking site, access to the user account will be blocked.

Session certificate

All Internet Banking data traffic is encrypted.

Internet Banking site certificate

Before starting to enter your log-in credentials, make sure that you have the right URL entered in your Internet browser address bar. The connection must be encrypted and you can see it in the address bar which should begin with https://...security icon Also, an icon security icon is visible at the bottom of the internet browser's window. The icon is a sign of Verisign certificate.

IT vulnerability reports

It is important for us at Swedbank that our customers can feel safe and secure when doing business with us. We have therefore a structured approach to security in all of our development and management of systems and constantly strive to achieve the highest possible security and quality. Despite this, an error may slip by. If you have found a security flaw, we would like to hear more about it to be able to correct the problem as soon as possible.

Additional information

How do you report?

Send an email to us at responsible-disclosure@swedbank.com. We prefer that you use our public PGP key to protect the information you send over. Make sure to have included the following information

  • Detailed description of the vulnerability containing such info as URL and type of vulnerability.
  • The necessary information that we need in order to reproduce the problem.
  • If applicable, a screenshot of the vulnerability you have found.
  • Contact information, name, email, phone number, and your public PGP key (if you have one).

What can you report?

You can report security flaws that you have found in any of our services. Examples of security flaws are cross-site scripting, flaws in encryption or flaws with security implications in logic controls. The reporting service is not for other logical errors, errors in texts, questions about our services, questions about the security of our services or similar.

What can you expect of Swedbank?

We will confirm that we have received your description, continuously keep you updated while we process the issue, and inform you when the issue is fixed. Claims for compensation as a condition for sending in a vulnerability is not accepted.

What is required of you?

It is important for both us and our clients' security that you follow good practice, i.e. that:

  • You do not use the vulnerability to access or attempt to access information that does not belong to you;
  • You do not use the vulnerability to remove or modify information;
  • You do not affect the availability of our services through denial of service attacks;
  • You give us an opportunity to fix the reported vulnerability before going public with it.

Can you file a report anonymously?

Yes, but then we cannot respond back and keep you updated on the status

PGP key

PGP key
Key ID: 0x0AD6CCAF
Fingerprint: 2D14 4030 6D4B 68C3 F286 3AC6 333B E8E4 0AD6 CCAF

Suspicious e-mails or calls. Be cautious and on your guard!

Sometimes you may receive phone calls or letters allegedly from 'bank employees' or other 'officials' asking you to reveal your secret codes. As a general rule such phishing is designed to trick somebody into disclosing their bank or credit card information by sending fraudulent e-mails purporting to be from a bank, Internet service provider, etc. asking for verification of account numbers or passwords.

  • Internet banking users must not disclose secret internet bank codes information to anybody even if threatened or promised substantial financial reward for it.
  • Internet banking users are encouraged to call the bank and inform it of any suspicious e-mails or phone calls asking them to supply or confirm information concerning their secret internet banking access codes.
  • Internet banking users must not click on links contained in suspicious e-mails, open any attachments or reply to them.
  • Swedbank never sends e-mails asking to provide your user ID, passwords or code card numbers, or any links to websites where any of your data have to be entered.
  • Swedbank never sends any e-mails asking to install additional software to improve Internet banking usability.

If you suffered something similar please report incident to the bank phishing@swedbank.lv.

Safe browsing

  • Threat suspicious files with caution and do not open them. Do not open files from anyone you don't know or if you are not convinced that it is safe to do so. Also be wary of suspicious files from people you know - they may be infected and the file in question may be a virus or spyware. Most often viruses are contained in files with the extensions .exe, .com, .bat, .vb, .vbs, .js, .scr and .pif.
    Viruses may also be present in Microsoft Office documents, so it is well worth to exercise caution when opening them and to select 'No' when Word asks if you want to run a macro (program script).
  • When you finish your Internet banking session, log off (by clicking on “Exit") and close your Internet browser (by clicking on “X" sign). This is obligatory even if you leave your computer unattended for a little while. By following this advice, you will protect yourself against your computer (and your bank accounts) being accessed by other persons.
  • If possible, avoid banking online at public places (Internet cafes, libraries etc.) However, if you must do so, always make sure that you close the browser after banking online and change your login password as soon as possible.
  • Do not log in to your computer using a user profile with administrator rights in your day-to-day work.
  • Turn your computer off when you don't use it. Nobody can hack a computer which is offline.

Protect your internet bank access codes

  • Do not, under any circumstances, share details of your secret internet banking codes with other persons, including your family members, friends or the Bank's employees. If you want your family members to manage money in your bank account(s) with Swedbank, ask the Bank to issue internet banking access codes to your selected persons too. Remember that all internet banking login details (user ID, codes, passwords, etc.) are essentially the key to accessing your money.
  • Keep the code card out of sight or reach of strangers and other persons. Do not write your ID number on it.
  • Never send internet banking access details via email.
  • Do not store your password or PIN together with the security token.
  • Your permanent password should be hard to guess and consist of illogical set of numbers, letters and other characters. Telephone numbers, personal names or other information related to you should be avoided. Choose a password that contains 8 to 16 characters.
  • Change your password in every 40 days.
  • Your PIN should not coincide with any part of your phone number. Avoid choosing a PIN resembling dates.
  • Change your permanent password or PIN immediately if you suspect that other person might have accessed your internet banking credentials.

Keep an eye on the movement of finances in your account

  • Keep track of transactions in your account on a regular basis.

Use free online virus scanners to verify that your computer is safe:

http://housecall.trendmicro.com/
http://www.kaspersky.com/security-scan
http://home.mcafee.com/downloads/free-virus-scan

We recommend the following safety measures on computers used for Internet Banking:

  • Install Antivirus software and configure it to automatic update of the virus definitions database (at least one auto-update per day).
  • Install and turn on the local firewall. It should be configured so that it prevents connections from the Internet to your computer.
  • Regularly download and install security updates for all software installed in your computer.
  • Use the latest browser and operating system available.
  • Turn on automatic updates for all software.
  • Set your browser to block pop-ups.

We recommend the following safety measures on mobile devices (smartphones and tablets) used for Internet Banking:

  • Download and install applications only from trusted sources such as the App Store on the iPhone and iPod touch or Google Play on your AndroidTM device or Windows Phone apps store.
  • Do not root or jailbreak your mobile device to get around limitations set by your carrier or device manufacturer. It will remove protections built into the device to defend against mobile threats.
  • Configure your mobile device to automatically download and install updates for all software installed on it.
  • Use the latest browser and operating system available.
  • If logging in has failed

    You can log into the Internet bank using your ID card, Mobile ID, PIN calculator or password card. Make sure you know all the necessary passwords and codes before you log in. The most common reason why logging into the Internet bank fails is that the user ID or permanent password has been entered incorrectly. Please make sure that you entered your user code and passwords correctly, and that the keys "Caps Lock" or "Num Lock" are not pressed on the keyboard. Also make sure that the language choice on the keyboard is standard.

    NB! If you made a mistake for five straight times in entering the user code and/or password when entering the Internet bank, your access to the Internet bank will be blocked. To release the block, please call our customer support or contact the nearest bank branch. If you have any problems call the Client Support Hotline for help: 6 310 310

    ID card

    Make sure that the ID card has been properly inserted into the card reader and that the ID card programme works. Close the browser and open it again.If you have questions or need help regarding ID card please contact with helpdesk 1777 or abi@id.ee

    Download the latest ID card software

    Mobile ID

    Please make sure that you entered Mobiil-ID PIN1 code, and not ID-card PIN1 code. If the verification code sent to your mobile phone differs from the code that you see on the screen, please call the customer support 6310310 immediately. If you have questions or need help regarding Mobile ID please contact with helpdesk 1777 or abi@id.ee

    PIN Calculator

    If the PIN calculator was damaged or the battery is empty (calculator screen displays zeros, calculator does not react to pressed buttons or generates incorrect passwords), please contact a branch to replace the calculator and produce the calculator and identification document.

    PIN calculator user instructions

    Password Card

    Make sure that you are using the correct password card and that you have entered the correct password in the password field.

  • Which means of authentication is the safest?

    ID card, Mobile ID and PIN calculator are the safest means of authentication. We recommend the ID card and Mobile ID, because they are easy to use and the safest means of authentication. A PIN calculator is equally safe. Password cards can be easily copied, which is why they cannot be considered a particularly safe means of authentication.
  • How do I find the full service price list?

    The full price list can be found on the private client homepage after selecting Prices and Rates under Useful.
  • How do I find the EURIBOR?

    Euribor can be found on the private client homepage after selecting Loan and Leasing Interest Rates under Prices and Rates on the Useful page.
  • How do I find IBAN and SWIFT/BIC codes?

    You can find the codes when you select International Settlements under Payments on the Everyday Banking page. Information about the international bank account number or IBAN can be found on the International Settlements page alongside the reference to the IBAN calculator. You will find the SWIFT codes when you click on the link to the List of Correspondent Banks at the bottom of the International Settlements page.
  • How can I change my Internet bank settings and contact details?

    Settings and contact details can be found under May Bank on the private client homepage. You can change your contact details and permanent password and define new Internet bank settings under My contacts and settings.
  • What is the donation environment?

    suitable amounts. The donation environment can be found on the Corporate Social Responsibility page.
    Further information is available on the donation environment page
  • Why can I not make large transfers with my password card?

    Passwords have outlived their usefulness as a means of personal identification in the whole world, and all banks are being advised to update to more secure methods of authentication. We recommend using your ID card / Digi-ID or Mobile ID for logging into the Internet bank. A PIN calculator is also a safe method of authentication, just a bit less comfortable to carry with you. The password card limit helps to protect the money in your account – if your passwords have fallen into the hands of someone whose intentions are not good, they will at least not gain unlimited access to your money.
  • Are there no limits on transfers when I log in with my ID card / Digi-ID?

    The limits you set in your teleservices contract are applied to transfers you make after logging in with your ID card / Digi-ID, Mobile ID or PIN calculator. The sensible option is to set a daily limit that covers the transfers you usually have to make. You can always increase your transfer limit temporarily if you wish to make transfers that are bigger than usual.
  • Do I have to return my password card to the bank when I stop using it?

    You do not have to return your password card. Simply keep it as back-up in case you are unable to use your ID card. The password card will just have a lower daily limit.
  • What should I do with my password card if I do not want it any more?

    Return it to the nearest branch of Swedbank.
  • Will password cards disappear entirely in the future?

    Banks are moving in the direction of ending the use of password cards designed for repeated use, but before we do this the majority of our clients will need to be using their ID card / Digi-ID or Mobile ID for authentication.
  • How can I change my limits?

    Limits can only be changed at a bank branch. The person making the change must be physically identified if maximum security is to be ensured, and this is why you cannot change your limits in the Internet bank. We recommend that you take a look at your current transaction limits again and change them if you need to. Set an amount as your limit that you would normally use in transactions on an ordinary day in the Internet bank.
  • What about telephone banking limits?

    If you use your password card in the telephone bank and its limit is currently set above 200 EUR, it will automatically reduce to 200 EUR after 1 January 2011. However, nothing will change for PIN calculator users.
  • What will happen to the PIN calculator?

    Nothing will happen to your PIN calculator. If you already use the PIN calculator you will be able to continue using our Internet and telephone banking services within the limits you have set.
  • Why should I prefer an ID card / Digi-ID to a PIN calculator?

    The ID card / Digi-ID is safer, because the chip it contains enables cardholders to secure their electronic communication.
    The ID card / Digi-ID is more convenient, because it gives access to the Internet banks of all larger banks in Estonia – there is no need for many different PIN calculators or password cards. You also get direct access to all e-services without having to identify yourself through an Internet bank. And your ID card is also easy to carry on you.
    The ID card is cheaper, because all you need in order to use it is an ID card reader, which you can order through the Internet bank or from any Swedbank branch for just 5,75 EUR.
  • What should I do if I have lost my ID card PINs?

    You can obtain new PINs from the offices of the Citizenship and Migration Board or from any Swedbank branch.
  • I do not have an ID card / Digi-ID yet. How do I get one?

    You can apply for an ID card / Digi-ID from the Citizenship and Migration Board. If you already have some form of personal identification issued by the Citizenship and Migration Board, such as a passport, you can apply for an ID card / Digi-ID by post. For more information see www.pass.ee
  • How can I access my bank account if an ID card / Digi-ID reader is not available?

    Password card
    Please keep in mind that if you use a password card to log into the Internet bank, you will not be able to perform transactions that exceed 200 EUR.
    Mobile ID
    Mobile ID is an ID card on your mobile phone’s SIM, which you can use to identify yourself in the Internet bank through your mobile phone. Only EMT clients can use Mobile ID.
    PIN calculator
    You can use your PIN calculator to perform transactions according to the limit defined in your contract. You can get a PIN calculator from a bank branch.
  • Banking glossary

    A
    Account statement A statement of the transactions done on the account.
    Account operator A legal entity who is a participant of the central depository and intermediates securities account services to investors.
    Activity based accounting Accounting method that accounts for revenues and expenses when they occur even if they have not actually been paid or received.
    Administration A service offered by banks which guarantees that the assets of the customer are preserved and that expedient security transactions are concluded; a relationship with the bank where the bank concludes the ownership actions of the customer according to the customer's orders.
    ADR A negotiable certificate held in a U.S. bank representing a specific number of shares of a foreign stock traded on a U.S. stock exchange. ADRs make it easier for Americans to invest in foreign companies.
    American-style option An option which can be exercised at any time between the purchase date and the expiration date. Opposite of European-style option.
    Annuity A series of equal payments paid periodically by a customer for repayment of a loan. If a loan is repaid on the basis of an annuity schedule, the amounts paid every month are of the same size and consist of a loan principle repayment and interest calculated on the outstanding loan.
    Arbitrage Attempting to profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Ideally, a pair of opposite transactions that take place simultaneously and generate profit with zero risk.
    Asset allocation The process of dividing investments among different kinds of assets, such as stocks, bonds, real estate and cash, to optimize the risk/reward tradeoff based on an individual's or institution's specific situation and goals.
    At-the-money A condition in which the strike price of an option is equal to (or nearly equal to) the market price of the underlying security.
    B
    Balance of payments An accounting record of all transactions made by a country with over a certain time period, comparing the amount of foreign currency taken in to the amount of domestic currency paid out.
    Balance sheet A quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth.
    Bankcard a card issued by a credit institution to accountholders or persons determined by accountholders for doing card transactions.
    Banking day A day when banks are open to carry out banking operations.
    Basis point The change in the price of a bond, per 100 nominal, for a 1 basis point change in its yield to maturity.
    Beta A quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the overall market. A beta above 1 is more volatile than the overall market, while a beta below 1 is less volatile.
    Black-Scholes model A model used to calculate the value of an option, by considering the stock price, strike price and expiration date, risk-free return, and the standard deviation of the stock's return. Blue chip - Stock of a large, national company with a solid record of stable earnings and / or dividend growth and a reputation for high quality management and / or products. More generally, anything of very high quality.
    Bond A debt instrument issued for a period of more than one year with the purpose of raising capital by borrowing.
    Bond yield The annual rate of return on an investment, expressed as a percentage. For bonds and notes, it is the coupon rate divided by the market price.
    Borrower A customer who has obtained a loan from the bank.
    Broker Any individual or firm which is in the business of buying and selling securities for itself and others.
    C
    Call An option contract that gives the holder the right to buy a certain quantity of an underlying security from the writer of the option, at a specified price (the strike price) up to a specified date (the expiration date).
    Capital gain The amount by which an asset's selling price exceeds its initial purchase price. A realized capital gain is an investment that has been sold at a profit.
    Cash flow A measure of a company's financial health. Equals cash receipts minus cash payments over a given period of time; or equivalently, net profit plus amounts charged off for depreciation, depletion, and amortization.
    CD (certificate of deposit) Short- or medium-term, interest-bearing debt instrument offered by banks and savings and loans. Low risk, low return.
    Clean price The present value of a bond net of accrued interest - i.e. interest accrued since the last coupon date. Most markets quote bonds on a clean price basis, except when the bond is into its final coupon period, when it may be quoted dirty.
    Clearing The process of calculating market participants' obligations towards each other and executing cash transfers as part of the settlement process.
    Closed investment fund A fund with a fixed number of shares outstanding, and one which does not redeem shares the way a typical mutual fund does. Such funds are often listed on a major stock exchange and trade like other securities. Unlike a typical mutual fund, a closed-end fund's share price can trade above or below its net asset value.
    Closing price The price of the last transaction for a given security at the end of a given trading session.
    Collateral Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.
    Commission A fee charged by a broker or agent for his/her service in facilitating a transaction, such as the buying or selling of securities.
    Common stock Securities representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company's success through dividends and/or capital appreciation.
    Compounding A process whereby the value of an investment increases exponentially over time due to compound interest.
    Convertible bond A corporate bond that can be exchanged, at the option of the holder, for a specific number of shares of the company's preferred stock or common stock.
    Corporate actions The term referring to any action involving a company's issued security other than market trading. Corporate actions can be intitatied by the company or by the holder of the securities. (Rights issues, takeovers, debt repayments, announcements of annual or extraordinary general meetings, dividends, etc.)
    Corporate bond A bond issued by a corporation.
    Counterpart One party of the transaction. A trade takes place between two counterparties.
    Coupon The interest rate on a fixed income security, determined upon issuance, and expressed as a percentage of par. Also, the term for each interest payment made to the bondholder.
    CP An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.
    CPI An inflationary indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation.
    Credit card A bankcard which allows card transactions to be done within the extent of the credit limit established in the agreement.
    Credit rating A published ranking, based on detailed financial analysis by a credit bureau, of one's financial history, specifically as it relates to one's ability to meet debt obligations.
    Credit risk The likelihood of non-payment of credit.
    Creditworthiness The ability of the customer to receive credit on the basis of the previous and present credit activities.
    Currency option The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of currency at a specified price (the strike price) during a specified period of time.
    Current account An account on which all current settlements are reflected.
    Current assets A balance sheet item which equals the sum of cash and cash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year.
    Current rate A rate quoted separately for every transaction.
    Current yield The annual rate of return on an investment, expressed as a percentage. For bonds, it is the coupon rate divided by the market price.
    Custodian An entity, often a bank, that safekeeps and administers securities for its customers and that may provide various other services, including clearance and settlement, cash management, foreign exchange and securities lending.
    Custody There are generally three types of custody arrangements: domestic custody, global custody and master custody.
    Day order A buy or sell order which automatically expires if it is not executed during that trading session.
    Debit card A bank card which allows card transactions to be done within the amount of the money on the account.
    Default interest A sanction for failure to fulfil monetary obligations in time.
    Deflation A decline in general price levels, often caused by a reduction in the supply of money or credit. Opposite of inflation.
    D
    Day order A buy or sell order which automatically expires if it is not executed during that trading session.
    Debit card A bank card which allows card transactions to be done within the amount of the money on the account.
    Default interest A sanction for failure to fulfil monetary obligations in time.
    Deflation A decline in general price levels, often caused by a reduction in the supply of money or credit. opposite of inflation.
    Delivery versus payment The simultaneous transfer of securities and cash that ensures that delivery of securities occurs only if delivery of funds occurs.
    Dematerialised securities Electronically held securities for which the physical certificates of ownership have been replaced by book entry records.
    Deposit Money invested in the bank for a certain period.
    Depreciation The allocation of the cost of an asset over a period of time for accounting and tax purposes. Also, a decline in the value of a property due to general wear and tear or obsolescence; opposite of appreciation.
    Derivative A financial instrument whose characteristics and value depend upon the characteristics and value of an underlying instrument or asset, typically a commodity, bond, equity or currency. Examples are futures, options, and mortgage-backed securities.
    Devaluation A substantial drop in the value of a currency, relative to the price of gold or the currencies of other countries.
    Direct debit order A type of payment where the customer authorises the bank to transfer a certain amount to the account of a certain beneficiary upon the demand of the latter.
    Dirty price The present value of a bond including accrued interest - i.e. interest accrued since the last coupon payment date.
    Discounted bond A bond which is sold at a price below its face value and returns its face value at maturity.
    Diversification A portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction.
    Dividend A declared by a company's board of directors and given to its shareholders out of the company's current or retained earnings.
    Dividend reinvestment Using the dividends from an investment to buy more of that investment. Domestic custody involves holding assets held in a country on behalf of its clients, including assets held under sub-custodial arrangements.
    Domestic payment a payment in case of which the accounts of the remitter and the beneficiary are in the same country.
    Double Taxation Agreement Inter-governmental treaty developed to avoid the double taxation of income. If interest or dividend income is taxed at source, the investor will not be required to pay the tax in its country of residency.
    Duration A measure of the average maturity of a series of cash flows, such as coupons and principal, on a bond. Duration can be used to calculate the market risk associated with a change in yield to maturity.
    E
    EPS Total earnings divided by the number of shares outstanding. Companies often use a weighted average of outstanding stock over the reporting term.
    Euro The common currency of the European Monetary Union, which became valid on January 1999. The European Monetary Union consists of countries who met the economic criteria determined in the Maastricht Treaty of the European Union in 1998. The Euro became valid as a settlement currency from the beginning of 1999. On January 1st 2002, the System of European Central Banks put into circulation banknotes with nominal values of 5, 10, 20, 50, 100, 200 and 500 euros and coins with nominal values of 1, 2, 5, 10, 20 and 50 cents and 1 and 2 euros.
    Eurobond A bond issued and traded outside the country whose currency it is denominated in, and outside the regulations of a single country; usually a bond issued by a non-European company for sale in Europe.
    Euro currency Currency deposited by companies and federal governments in banks outside their own country, usually currency of a non-European country deposited in Europe.
    European style option An option which can only be exercised for a short, specified period of time just prior to its expiration, usually a single day.
    Ex-dividend day The first day of the ex-dividend period. also called reinvestment date.
    Expiration date The date on which an option, right or warrant expires, and becomes worthless if not exercised.
    F
    Fill or kill An order given to a broker that must immediately be filled in its entirety or, if this is not possible, totally canceled.
    Foreign bond A bond issued outside of the issuer_s domicile. Generally the nominal currency of the bond is the currency in circulation in the country the issue will be carried out.
    Forward Cash market transaction in which a seller agrees to deliver a specific cash commodity to a buyer at some point in the future.
    Free cash flow Operating cash flow (net income plus amortization and depreciation) minus capital expenditures and dividends.
    Free of payment The movement of securities which is not dependent on the simultaneous movement of cash countervalue.
    FRN (Floating Rate Notes) A bond on which the coupon is reset periodically in line with a money market reference rate such as LIBOR.
    Fund manager The individual responsible for making portfolio decisions for a mutual fund, pension fund, or insurance fund.
    Fundamental analysis A method of security valuation which involves examining the company's financials and operations, especially sales, earnings, growth potential, assets, debt, management, products, and competition.
    Futures A standardised, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date.
    G
    GDP The total market value of all final goods and services produced in a country in a given year; equals total consumer, investment and government spending, plus the value of exports minus the value of imports.
    GTC (good till cancelled) An order to buy or sell which remains in effect until it is either executed or cancelled.
    Guarantor A person who enters into the obligation to pay the debt for the debtor.
    I
    Index A benchmark against which financial or economic performance is measured.
    Indexing A passive investment strategy in which a portfolio is designed to mirror the performance of a stock index.
    Inflation A macroeconomic indicator which shows the increase of the general price level; the inflation rate is the speed of price increases.
    Insider An officer or director of a company whos has not publicly known information. Also, any individual who has inside information.
    Institutional investor Entity with large amounts to invest, such as investment companies, mutual funds, brokerages, insurance companies, pension funds, investment banks.
    Interest Interest is the fee payable for the use of borrowed money. Simple interest is calculated only on the basis of the loan amount, compound interest on the basis of the sum of the loan and the previous period’s interest. Floating interest rates change during the agreement period according to the conditions set in the agreement. Floating interest rates are usually reviewed twice a year, whereas interest is calculated on the basis of the 6 months EURBOR as of the date of review. EURIBOR (European Interbank Offered Rate) is the all-European interbank interest rate of the EURO. A fixed interest rate is valid during the entire duration of the loan agreement.
    Interest rate The interest rate on a fixed income security, determined upon issuance, and expressed as a percentage of par. Also, the term for each interest payment made to the bondholder.
    Interest rate risk The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates.
    Interest swap An exchange of two debt obligations that have different payment streams.
    International payment A payment in case of which the accounts of the remitter and the beneficiary are in different banks and the banks are in different countries.
    In-the-money Situation in which an option's strike price is below the current market price of the underlier (for a call option) or above the current market price of the underlier (for a put option).
    Investment fund Firm that invests the pooled funds of retail investors for a fee. There are two types: open-end (mutual funds) and closed-end (investment trusts).
    IPO (initial public offering) The first sale of stock by a company to the public.
    ISIN International Securities Identification Number. A coding system developed by ISO with the purpose of creating one unique number on a global basis for identifing securities.
    Issue A stock or bond which has been offered for sale by a corporation or government entity, usually through an underwriter or in a private placement.
    Issue prospectus A legal document offering securities or mutual fund shares for sale. It must explain the offer, including the terms, issuer, objectives (if mutual fund) or planned use of the money (if securities), historical financial statements, and other information that could help an individual decide whether the investment is appropriate for him/her.
    Issuer A company or municipality offering (or having already offered) securities for sale to investors.
    L
    Leasing A transaction where the bank purchases the property which the customer is interested in and allows the latter to use the same for a certain fee.
    LIBOR The interest rate that the largest international banks charge each other for loans.
    Limit order An order to a broker to buy a specified quantity of a security at or below a specified price or to sell it at or above a specified price (called the limit price).
    Loan limit An amount given to the customer on the basis of a resolution of the loan committee that must be used for the agreed purpose.
    Loan schedule A loan repayment schedule.
    Long-term loan Loans whose deadline exceeds 1 year.
    M
    Macaulay duration Macaulay duration is a measure of the weighted average life of a bond, taking into account: a) The size of each cash flow b) It´s timing.
    Market A public place where buyers and sellers make transactions, directly or via intermediaries.
    Market cap The sum of a corporation's long-term debt, stock and retained earnings. also called invested capital. Also, the market price of an entire company, calculated by multiplying the number of shares outstanding by the price per share.
    Market maker A brokerage or bank that maintains a firm bid and ask price in a given security by standing ready, willing, and able to buy or sell at publicly quoted prices (called making a market).
    Market order A buy or sell order in which the broker is to execute the order at the best price currently available.
    Master custody The custody of domestic and foreign assets of a domestically domiciled, whose assets the master custodian has primary control over, providing a single point of reporting and integration of value added services.
    Maturity date The date on which a debt becomes due for payment.
    Modified duration A measure of the market risk on a bond. Defined as the percentage change in the market value of a bond investment for a 100 basis point change in yield.
    Monetary committee A monetary system in case of which the independent issuer (Bank of Estonia) may change the amount of money circulating in the state only according to how the gold and foreign currency reserves of the issuer change. This system allows people to always change their money into a foreign currency on the basis of a fixed rate. In addition to Estonia, the monetary committee system is also used in Hong Kong, Singapore and Argentina.
    Money market fund An open-end mutual fund which invests only in money markets.
    Mortgage loan Credit which is secured with the property of the borrower and in case of which the conditions of the loan, the methods of repayment, liquidity, the right to purchase the mortgage and the possibilities of reacquisition have been particularly emphasised.
    MTN MTN's are debt instruments predominantly of one to ten years maturity which are issued under one set of master documentation over a period of several years. For this reason they are also referred to as continuously-offered products.
    Municipal bond Bond issued by a state, city, or local government to finance operations or special projects.
    Mutual fund/open-ended fund An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Benefits include diversification and professional money management. Shares are issued and redeemed on demand, based on the fund's net asset value which is determined at the end of each trading session.
    N
    NAV The dollar value of a single mutual fund share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.
    O
    Option The right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time.
    OTC-market The computer and phone system through which over the counter (as well as listed) securities are traded.
    Out-of-the-money A call option whose strike price is higher than the market price of the underlying security, or a put option whose strike price is lower than the market price of the underlying security.
    Overdraft Allows money to be overdrawn from the account within the extent of a determined limit.
    P
    P / B ratio A stock's capitalisation divided by its book value.
    P / E ratio The most common measure of how expensive a stock is. Equal to a stock's capitalisation divided by its after-tax earnings over a 12-month period.
    Payment A transfer of monies from one account to another by bank transfer or cash done in a bank.
    Payment balance A ratio of the total amount of payments received from foreign countries and paid from the state to foreign countries within a certain time: the balance is active if the amount of outgoing payments is bigger and passive in the opposite case; a report which identifies all the financial transactions of one state with other states; people who travel will not have to waste time and money on currency exchange; consumers can buy services and goods in each country for comparable prices, which increases competition and reduces prices; inflation decreases and interest rates drop; the negative influence arising from the fluctuation of currency rates on the economies of the states will disappear; trading in the customs-free inner market of the European Union will become easier; the export costs of companies, first and foremost the smaller ones, will decrease.
    Payment date The date on which a dividend, mutual fund distribution, or bond interest payment is made or scheduled to be made.
    Periodic payment order A customer’s order to the bank to transfer a certain amount to one specific beneficiary after certain intervals of time.
    Position The amount of a security either owned (a long position) or owed (a short position) by an investor or dealer.
    PPI An inflationary indicator to evaluate wholesale price levels in the economy.
    Preferred share Stock type which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. Usually does not carry voting rights.
    Primary market The market for new securities issues.
    Principal The amount borrowed, or the part of the amount borrowed which remains unpaid (excluding interest).
    Private placement The sale of securities directly to institutional investors, such as banks, mutual funds, insurance companies, pension funds. Does not normally require registration with a country´s Securities Board.
    Prospectus A legal document offering securities or mutual fund shares for sale. It must explain the offer, including the terms, issuer, objectives (if mutual fund) or planned use of the money (if securities), historical financial statements, and other information that could help an individual decide whether the investment is appropriate for him/her.
    Public offering The making available of a new securities issue to the public through an underwriting.
    Put An option contract that gives the holder the right to sell a certain quantity of an underlying security to the writer of the option, at a specified price (strike price) up to a specified date (expiration date).
    Q
    Qualitative analysis Determining the value of an investment, especially a stock, by examining its non-numeric characteristics, such as management, employee morale, customer loyalty, and brand value.
    Quantitative analysis The process of determining the value of a security by examining its numerical, measurable characteristics such as revenues, earnings, margins, and market share.
    Quotation A definition of the price of goods or the price of securities in the stock exchange.
    Quoted security A security that is in accordance with a trading provisions of a licensed stock exchange and that can be traded on this exchange.
    R
    Record date Date on which an individual must own shares in order to be eligible to receive a declared dividend or capital gains distribution.
    Reference number A combination of figures characterising a specific account and the payment related thereto, which connects the invoice submitted by the seller to the customer and the payment order made on the basis thereof.
    Repo A contract in which the seller of debt securities agrees to buy them back at a specified time and price.
    Rights A privilege allowing existing shareholders to buy shares of an issue of common stock shortly before it is offered to the public, at a specified and usually discounted price, and usually in proportion to the number of shares already owned.
    Risk/reward trade-off The relation between risk and return that usually holds, in which one must be willing to accept greater risk if one wants to pursue greater returns
    Risk capital Funds made available for start-up firms and small businesses with exceptional growth potential. Managerial and technical expertise are often also provided.
    Risk/income ratio a ratio between the growth potential of an investment and the possibility of a loss.
    ROA A measure of a company's profitability, equal to a fiscal year's earnings divided by its total assets, expressed as a percentage.
    ROE A measure of how well a company used reinvested earnings to generate additional earnings, equal to a fiscal year's after-tax income (after preferred stock dividends but before common stock dividends) divided by book value, expressed as a percentage.
    S
    S.W.I.F.T. The Society for Worldwide Interbank Financial Telecommunication, established to service payments needs of banking industry through standardised, electronic messages. The securities markets became involved in 1987 with the acceptance of stock exchanges, brokers and depositories into the SWIFT network.
    Same day payment The day of receipt/making the payment is both the remitter’s value date and the beneficiary’s value date.
    Savings deposit Money deposited in the bank for a certain period to which the customer may make additional payments if desired, i.e. the principal amount may be increased.
    Secondary market A market in which an investor purchases a security from another investor rather than the issuer, subsequent to the original issuance in the primary market.
    Security account Whenever a client enters into a custody agreement, Swedbank opens an account in its books in the name of client for depositing securities belonging to that client. A cash account is a precondition for opening a securities account.
    Security type Different securities as stock, bond, fund share etc.
    Settlement date Legal transfer of the title of ownership on securities or other assets. It is normally the completion of a transaction, by which the seller transfers securities or other financial instruments to the buyer and the buyer transfers money to the seller.
    Share An investment which represents ownership in an enterprise or investment fund.
    Short sale Borrowing a security from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker.
    Short-term liabilities Liabilities payable within 12 months like short-term debt, long-term debt interest etc.
    Short-term loan A loan whose deadline is less than 1 year.
    Standard deviation A statistical measure of the historical volatility of a mutual fund or portfolio. More generally, a measure of the extent to which numbers are spread around their average.
    Standard statement An account statement approved by the Banking Association and a regulation of the president of the Bank of Estonia.
    Stock An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits.
    Stock exchange An exchange on which shares of stock and common stock equivalents are bought and sold.
    Stock option An option in which the underlier is the common stock of a corporation, giving the holder the right to buy or sell its stock, at a specified price, by a specific date. Also called equity option.
    Stop order A market order to buy or sell a certain quantity of a certain security if a specified price (the stop price) is reached or passed.
    Strike price The specified price on an option contract at which the contract may be exercised, whereby a call option buyer can buy the underlier or a put option buyer can sell the underlier.
    Sub-Custodian Institution that administers securities of a custodian and/or custodian clients in a local market.
    Subscription To agree to purchase securities in a new issue.
    Swap An exchange of streams of payments over time according to specified terms. The most common type is an interest rate swap, in which one party agrees to pay a fixed interest rate in return for receiving a adjustable rate from another party.
    Symbol A system of letters used to uniquely identify a stock or mutual fund.
    T
    TALIBOR Tallinn Interbank Offered Rate and TALIBID (Tallinn Interbank Bid rate) are the average of the interest rates quoted by contributor banks on the loans and deposits for specific tenors, which are calculated and published by Bank of Estonia on daily basis. The list of contributor banks is approved by BOE and currently consists of the 5 banks most active on the Estonian money market.
    Tax An amount paid on certain services/benefits/income as established by the state.
    Tax reclaim Reclaiming (if entitled to do so) excess tax withheld on an interest or dividend payment.
    Technical analysis A method of evaluating securities by relying on the assumption that market data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends.
    Term deposit Money deposited in the bank for a certain period whereas the principal amount of the money does not change.
    Trade date The date on which the transaction occurs.
    V
    Value date The day when the settlements related to a securities transaction are done. The value date is a certain number of days after the date of the transaction.
    Volatility The relative rate at which the price of a security moves up and down; found by calculating the annualised standard deviation of daily change in price.
    W
    Warrant A security usually issued along with a bond or preferred stock, entitling the holder to buy a specific amount of securities at a specific price, usually above the current market price, for an extended period, anywhere from a few years to forever.
    Y
    Yield to maturity (YTM) Yield that would be realized on a bond or other fixed income security if the bond was held until the maturity date. It is greater than the current yield if the bond is selling at a discount and less than the current yield if the bond is selling at a premium.