Deposit

Fixed Time Deposit Products

• Fixed Time Deposit Accounts

  Features of Fixed Time Deposit Accounts

  i. Its bears higher interest than saving account but impose conditions on the amount, withdrawal and interest payment;

  ii. Interest Rate on fixed time deposit, other than rates stipulated on the Banks term and tariffs shall be determined by the President/ delegated;

  iii. The deposited amount can be served as collateral for other facility;

  iv. It is opened for a particular fixed period (time) by depositing specified amount of money for a specified period of time at a negotiated interest rate; 

  v. The minimum period of accepting a fixed time deposit shall be six (6) months. However, the Bank may negotiate periods less than six month and the rate of interest will be set in consultation with Finance and Treasury office which varies according to the duration and amount of the deposit received; i.e. the longer the deposit remains in the possession of the bank, the higher the rate to be earned and the higher the amount, the higher the rate to be earned;

  vi. Under normal circumstance withdrawal is not allowed prior to the maturity date. If customer requests any withdrawal before the maturity date, interest shall be forfeited. However, earned interest may be paid to the customer for the withdrawn amount exceptionally if approved by Deposit Mobilization Committee and / other relevant units, and any remaining amount shall be entitled to the fixed deposit interest rate; 

  vii. If the customer fails to appear on maturity, the interest plus the principal should be transferred to the customer accounts or shall be renewed for a further period depending on the instructions given by the customer at the time of agreement;

  viii. If the bank accepts the customer request to roll over the principal and interest, it can be rolled over to the next agreed period;

  ix. If the certificate expired, interest will be calculated only for the duration of certificate and no interest will accrue to the deposit after the expired of the certificate, unless it has been replaced by a new agreement;

  x. The minimum balance acceptable for a fixed time deposit is Birr 100,000.00 (one Hundred Thousand Birr).