INFORMATION BULLETIN

DEPOSIT “EXTENDABLE”

Extendable term deposit, with interest payment on monthly basis or at the end of the term, with possibility of granting overdraft.

Deposit validity: 01.01.2012 - 31.12.2012

Deposit currency

AMD

USD

Interest rate

11 %

7 %

Minimum deposit amount

100.000 AMD

   300 USD

Deposit  period             

365 days

The deposit is developed for resident  physical persons.

Term extendable deposit. During the deposit validity period the extendable amount cannot exceed the thrice of the initial deposit amount.

Deposit replenishment – unlimited for periodicity, with the exception of the last three months of the deposit. 

ArCa or Visa Electron payment card is granted for free, without charging annual service fee. 

All the depositors are granted Unipay unified utility payment system cards.

Interest payment is made to the depositor’s banking or card account by the depositor’s request: at the end of the term or monthly.

Possibility of granting overdraft to the sum of 90% of the initial deposit amount by the date of concluding the deposit contract. 

Interest rate on overdraft will be fixed in the following way: interest rate on deposit fixed in the deposit contract plus 5%.

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Tariffs and fines

1.       In case of preterm annulment of the deposit contract on the depositor’s initiative:

a/ from the sum available on the depositor’s banking account paid interest is charged in case monthly interest payment is stipulated by the deposit contract, 

b/ interest, accrued on the deposit amount and transferred to the depositor’s banking account, are not paid in case the deposit contract stipulates interest payment at the end of the term.

2.       In case of preterm annulment of the deposit contract interest is accrued to the actual daily remainder of the deposit amount, for physical persons annual interest rate is 0.1% for the real period of placement in the bank. The bank is entitled to change the interest rate being accrued to the sum on the banking account in accordance with the tariffs and rates approved by the Board of Unibank CJSC.     

3.     Account service of term deposits is made via banking accounts. From the client’s banking accounts annual fee for account service is charged, in accordance with the tariffs and rates of the bank.

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Information about interest rates
1 Annual interest rate  - interest rate determined by the deposit contract in annual segment,  according to which are accrued interest rates paid to the depositor.

Interest calculation formula for the present deposit product:
DT * Y / 365 * Days – 10% (income tax)
where
DT – sum of placed deposit
Y – annual interest rate
Days – number of days for which the deposit is placed, taking into consideration paragraph 1 of article 907of Civil Code of Republic of Armenia, according to which deposit interest is not accrued on the day of placement and recall of the deposit. 

Example 1
Deposit term - 365 days
Deposit sum - 100 000  AMD
Annual interest rate - 11%
100 000 * 11 /100 / 365 * 363 -10% = 9 845.7 AMD

2. Annual interest income (APY) – annual interest income on deposit in case of making compulsory payments by the investor as well as at capitalization of interest
APY= (1+r/n)n  -1,  where
APY- annual interest income
r- annual interest rate
n- frequency of capitalization  sum of interest rate during the year 
 
If interest is paid monthly n =12 , then
                           APY= (1+0.11/12)12 -1,     
                           APY=0.115718*100=11.57%
If interest is paid at the end of term  n =1 , then
                           APY= (1+0.11/1)1  -1,      
                           APY=0.11*100=11%

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Additional information

1. According to point 2 of the law of RA “About currency exchange regulations and currency controls” interest payment on financial opertions is made in AMD.  Interest is accrued daily. If the deposit is placed in foreign currency, the interest is paid according to the settlement rate fixed by the CBA on the day of payment.   

2. Interest accrued to the deposit is subject to taxation (income tax) at the rate of 10%, according to the legislation of RA. The depositor is paid the sum less the tax. 

3. If the deposit contract term coincides with holiday and/or week-end, the term is the subsequent working day. 

4. The deposits placed in the bank are guaranteed by the Deposit Guarantee Fund, in accordance with the legislation of RA. The procedure of guaranteed deposits calculation is fixed by the central bank of RA. The guaranteed deposits limits are as follows:

• only for deposits in AMD – 4 million AMD,
• only for deposits in foreign currency – 2 million AMD 
• for deposits in AMD (over 2 million) and for deposits in foreign currency – up to 4 million AMD (only deposits in AMD are guaranteed )
• for deposits in AMD (less than 2 million) and for deposits in foreign currency – deposits in AMD are fully guaranteed and the banking deposits in foreign currency are guaranteed equal to the difference of 2 million AMD and reimbursed banking deposit in AMD.

All the deposits in AMD placed in the same bank are considered to be one deposit, all the deposits in foreign currency are also considered to be one deposit. The joint deposit is a separate deposit in proportion to the share fixed in the contract.  

5. For opening the deposit account it is obligatory to have banking account. For placing the deposit in foreign currency, besides opening banking account in foreign currency, it is obligatory to open banking account in AMD for accruing deposit interest according to the legislation of RA. Account service fee is charged in accordance with the tariffs and rates of the bank and is stipulated by point 2.4 of the service contract.

6. Please get any further information contact hot line at 59 55 55.

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Information about the client’s rights protection

Any disputes and conflicts arising during the account service or deposit contract validity are settled by mutual consent of the parties. In case of failure the depositor’s rights are protected in legal way, and in cases stipulated by the law – by arbitration as well as via financial ombudsman. The depositor can protect his rights by himself or via the authorized representative. The bank has no right to condition the conclusion of the deposit contract with the conclusion of the arbitration agreement.