Important Information - Cumulative term deposit accounts

Important Information

Cumulative deposit account is opened free of charge and is not subject to any service charges for the whole duration of the deposit term.

Your deposit is guaranteed by the Deposit Guarantee Fund in accordance with the RA Law on Guarantee of Compensation for the Banking Deposits of Physical Persons. The law stipulates the below limits for deposit guarantees:

1. If you have a deposit only in AMD within the same bank: AMD 10 million

2. If you have a deposit only in foreign currency within the same bank: AMD 5 million

3. If you have deposits both in AMD and in foreign currency within the same bank and if the deposit in AMD is more than AMD 5 million: AMD 10 million (only the deposit in AMD is guaranteed)

4. If you have deposits both in AMD and in foreign currency within the same bank and if the deposit in AMD is less than AMD 5 million: AMD 5 million (the deposit in AMD is fully guaranteed and deposit in foreign currency is guaranteed in the amount of the difference between AMD 5 million and the guaranteed deposit in AMD)

Dispute settlement*

The disputes or disagreements arising from the cumulative term deposit agreement are settled in accordance with the RA legislation.

If the property claim related to a dispute does not exceed AMD 10 million or its equivalent in other currency, the dispute can be settled through the Financial System Mediator.

The Bank has waived its right to appeal the decisions of the Financial System Mediator, if the property claim requested by you does not exceed AMD 250,000 or its equivalent in other currency and the amount of the transaction does not exceed AMD 500,000 or its equivalent in other currency.

* Third parties can credit funds to Cumulative deposit account on the name of the deposit holder in scope of Cumulative Term deposit agreement terms.

Have a question?

Call an HSBC financial professional
+374 60 655 000

Our phone lines are open 24/7

Have a question?

Call an HSBC financial professional

+374 60 655 000

Our phone lines are open 24/7

Note: In case of discrepancies between the Armenian and English versions of this page, the Armenian version shall prevail.

Last updated on: 25/04/2017 15:00

 

1. What types of Cumulative deposits HSBC Bank Armenia offers?

We offer to open Cumulative Term deposits with the following terms: 3, 4, 5 and 10 years.

 
 

2. In which currencies Cumulative deposits are offered?

Deposits are offered in AMD, USD and EUR.

 
 

3. What are the available maturity options for cumulative deposits?

There are two maturity options for cumulative deposits` one-off repayment of entire amount at the end of the deposit period, and repayment with periodic installments (during redemption period).

 
 

4. What are the interest payment options during the Cumulative deposit accumulation phase?

You have two options to choose from:

1. Interest payment to your current/savings account or
2. Compounding of interest to principal amount with periodicity defined by you.

 
 

5. What are the interest payment options during the Cumulative deposit redemption phase?

You have two options to choose from:

1. Interest payment to your current/savings account with periodicity defined by you or
2. Payment at the end of the deposit term.

 
 

Maturity of your cumulative term deposit

You can choose the below two options for maturity of your cumulative term deposit:

One-off repayment

  • You can instruct the Bank to transfer all accumulated savings in a one-off repayment to an account designated by you.

Repayment with periodical instalments

  • You can instruct the bank to repay the accumulated savings in periodical (monthly or quarterly) installments for the duration of a term specified by you. If you choose this option, the same interest rate as applicable for cumulative term deposits at the time of repayments will be applied to the available balance on your deposit allowing you to earn interest also during the redemption period of your deposit.
 
 

Termination of the deposit

If the deposit is withdrawn within the first 12 months after the opening date, 1/100 portion of the accrued interest will be paid.

In case if the deposit is withdrawn after 12 months but before the deposit maturity date, interest will be paid on pro-rated basis based on the following formula:

Time Deposit Formula

where:

PI – payable interest

AI – accrued interest

AT – actual term

IT – initial term

In case if interest has already been paid, interest amount will be recalculated and any applicable difference will be deducted from the deposit principal.