Retention offer (retenční nabídka)
An individual offer of a lower rate that your existing bank makes to keep you, most often before the fixed period ends and once you announce you are refinancing elsewhere. It is a commercial decision of the bank, not a legal institution. Under Act No. 257/2016 Coll., the bank must send the new rate at least 3 months before the fixed period ends, and the retention offer usually undercuts that first notice.
Example
After five years, about CZK 3,543,000 is left of a CZK 4,000,000 loan (5.00 %, 25 years). The bank's letter offers 5.80 %, which would push the payment up to CZK 24,976. Shown a competing offer, the retention team cuts the rate to 5.00 %, so the payment stays at CZK 23,382. That saves CZK 1,594 a month, or about CZK 95,600 over five years.
In practice
Start negotiating as soon as the letter with the new rate arrives, ideally with a written offer from another bank in hand. Retention deals tend to come from a specialised team rather than the branch, so ask for one explicitly. Ignore the letter and the loan simply re-fixes at the offered rate, after which you can only prepay with a fee.
How it differs
Re-fixing (refixace) is any new rate set with your existing bank; a retention offer is its negotiated, cheaper version. Refinancing (refinancování) means moving to another bank, with a new loan agreement, a new valuation and new collateral.
Related terms
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