Key differences between Full Reserve Accounts and Investment products
Feature | Full Reserve Account | Investment Products |
Capital Protection | 100% of deposits protected | Not guaranteed |
Risk Level | Zero risk to principal | Varies by product |
Access to Funds | Immediate availability | May have lock-in periods |
Interest Earned | No interest earned | Possible returns, but not guaranteed |
Usage of Funds | Never used for lending/investing | Actively invested |
1. What happens when I move my money from a Full Reserve Account to an investment product?
When you transfer funds from your Full Reserve Account to any investment product, your money leaves the Full Reserve protection system. This means:
When you transfer funds from your Full Reserve Account to any investment product, your money leaves the Full Reserve protection system. This means:
Your funds are no longer held in 100% reserve
The money becomes part of an investment pool
The Full Reserve Account protection no longer applies
Your capital may be used for investment activities
2. What are the risks involved in this transition?
Moving to investment products introduces several risks:
Your principal amount is not guaranteed
Returns can fluctuate based on market conditions
The value of your investment may go up or down
Investment products are not covered by the Full Reserve protection
3. How is my money treated differently in investment products?
In investment products, your funds are:
Actively used for investment purposes
Subject to market fluctuations and risks
Not maintained in 100% reserve
Managed according to specific investment strategies
No longer segregated as in Full Reserve Accounts
4. Can I move back to a Full Reserve Account?
Yes, you can return to a Full Reserve Account:
Transfer back is possible after investment term ends
Some products may have lock-in periods
Early withdrawal may incur penalties
New deposits will receive Full Reserve protection
⚠️ Important Notice: Once funds are moved to investment products, they lose the unique protection offered by ORO Bank's Full Reserve model. This change is permanent for the duration of the investment.
5. Important Considerations Before Switching
Before transitioning from a Full Reserve Account to investment products, consider:
Your risk tolerance and financial goals
The time horizon for your investment
Your need for immediate access to funds
The level of protection you require for your capital
For personalized guidance about your banking and investment options, please:
Contact our Customer Support: [email protected]
Visit our website: www.oro.bank