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Open a Cumulative Term Deposit by visiting any of our branches or by calling us at 515 415.
- A unique tool for retention of your company skilled workforce
- Allows you to make the most of your company's surplus funds
- Competitive deposit interest rates
- Guaranteed payment of interest income at the maturity of the deposit
- Possibility of making regular contributions to the deposit account
- Flexibility in terms of amount and period
- Detailed regular statements during the whole period of the deposit
The product can be used for both the company's own savings and its employees' savings.
- The company may open a deposit account for its own needs and dispose of its funds accordingly
- The company may open a deposit account and use it as an employee special reward scheme1
The company may contribute a certain percentage of its employees' monthly salary to the Cumulative Term Deposit Account, as an additional benefit for staff. The monthly contribution amount may vary based on an employee's performance, position, years of employment and other factors.
1 Employees can make additional investments by opening their own deposits: the terms and conditions of these deposits can be viewed in Cumulative Term Deposit for individuals section.
Other Important Information
The Cumulative deposit account is opened free of charge and is not subject to any service charges for the whole duration of the deposit term.
Dispute settlement
The disputes or disagreements arising from the cumulative deposit agreement are settled in accordance with the RA legislation.
Currency |
Total term |
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Interest rate and calculation method
The interest rate for the Cumulative Term Deposit is equal to the sum/difference of
the Bank's base rate and the Bank's fixed margin.
Interest will be accrued on a daily basis and can be paid to the customer with the following options:
- Monthly or quarterly payment of accrued interest to the account specified by the customer
- Monthly or quarterly compounding of accrued interest to the term deposit (compounding of interest is available only during the deposit accumulating phase) Interest paid for Cumulative Term Deposits is subject to taxation in accordance with RA legislation.
Important note The current nominal interest rate of the Cumulative Term Deposit can be changed by the Bank based on the change of the Bank's base rate. In case of change of interest rate you will be notified at least one month prior to the change entering into force.
Replenishment options
After you open the Cumulative Term Deposit, funds may continue to be deposited into the account at any time either by yourself or any third party. To replenish your account you can:
- Set regular payments by giving instruction to the bank
- Deposit any amount at any time
- Change regular payment amount and periodicity
- Stop replenishing your account, or take a payment holiday and restart later when circumstances change
Statements
- You will receive detailed statements at the preferred frequency1
- The statements will reflect your initial deposit amount, funds periodically paid into your deposit account, total balance and interest accrued
- You can choose between receiving the statements via e-mail or in hard copy, delivered to your specified address or held for your collection at any of our branches
Maturity Options
Choose the maturity option that meets your future plans best.
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 periodic instalments
- You can instruct the bank to repay the accumulated savings in periodical (monthly or quarterly) instalments for the duration of a term specified by you2. 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.
1 Customers are entitled to receive free of charge monthly statements delivered to them in the territory of the Republic of Armenia or via e-mail. Other options for delivery of statements are offered based on the Bank's tariff of charges. For complete, detailed, up to date information on other delivery options, visit bank account statements / other documentation delivery section
2 Cumulative Term Deposit repayment duration can not exceed 15 years.
Other Important Information
The Cumulative deposit account is opened free of charge and is not subject to any service charges for the whole duration of the deposit term.
Dispute settlement
The disputes or disagreements arising from the cumulative deposit agreement are settled in accordance with the RA legislation.
The Cumulative Term Deposit is subject to early repayment to the Customer only at the consent of the Bank.
- 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 the deposit is withdrawn after 12 months but before the deposit maturity date, interest will be paid on a pro-rated basis based on the following 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.
Other Important Information
The Cumulative deposit account is opened free of charge and is not subject to any service charges for the whole duration of the deposit term.
Dispute settlement
The disputes or disagreements arising from the cumulative deposit agreement are settled in accordance with the RA legislation.
How the Cumulative Term Deposit works
Let's consider a company that has decided to use this service as a retention tool for its employees and would like to contribute a certain percentage of employees' monthly salary depending on the length of service, seniority and performance of the employee. Below is an indicative table of ranges that a company could adapt and use:
| Seniority | Years of | employment |
| Senior manager | 3-10 | 5% |
| Above 10 | 6% | |
| Middle manager | 3-10 | 4% |
| Above 10 | 5% | |
| Junior levels | 3-10 | 3% |
| Above 10 | 4% |
As an example we will take the case of a senior manager having 5 years of creditable service, earning a net monthly salary of AMD 600,000 and with salary increase of 4% per annum. The Table 1 shows the details of this example and how much the senior manager could receive after 20 years.
Upon maturity of the deposit, the repayment(s) could be exercised as per the senior manager's decision: either (a) in a lump sum, (b) monthly regular payments. In case of monthly payments, for example, equal portions during a 10 year period, the monthly payment for the above described case will be AMD 501,401.
| Table 1 | ||||||||
| Years of employment | Seniority | Deposit term | Initial contribution (% of net salary) |
Monthly net salary | Annual salary increase rate | Initial monthly contribution | Deposit interest rate | Accrued interest and amount |
| 5 | Senior manager | 20 years | 5% | AMD 600,000 | 4% | AMD 30,000 | 10.75% | AMD 36,776,158 |
| Nominal Interest Rates | |||||||
| Currency | Minimum Initial Deposit | Bank Base Rate (BR) | Deposit Total Term | ||||
| 12 – 36 months | 37 – 60 months | 61 – 120 months | 121 – 240 months | 241 – 360 months | |||
| AMD | 100,000 | 10.5% effective 01 April, 2009 | BR-1% | BR-0.5% | BR-0.25% | BR-0% | BR+0.25% |
| 9.5% | 10% | 10.25% | 10.5% | 10.75% | |||
| USD | 500 | 8.75% effective 10 November, 2008 | BR-4.75% | BR-4.25% | BR-3.75% | BR-3.25% | BR-2.75% |
| 4% | 4.5% | 5% | 5.5% | 6% | |||
| EUR | 500 | 7% effective 22 April, 2009 | BR-6% | BR-5% | BR-4% | BR-3.5% | BR-3.25% |
| 1% | 2% | 3% | 3.5% | 3.75% | |||
Other Important Information
The Cumulative deposit account is opened free of charge and is not subject to any service charges for the whole duration of the deposit term.
Dispute settlement
The disputes or disagreements arising from the cumulative deposit agreement are settled in accordance with the RA legislation.
