Build and protect your money for a better future

Today’s proper planning holds the key to secure and prosperous future. Invest your free funds in Cumulative Term deposit1, replenish and increase your savings and receive them back in the future in one-off or regular repayments during a term specified by you. Build and save your money today to ensure a better tomorrow.
Deposit currency and minimum amount

Armenian drams, minimum amount AMD 100,000

US dollars and euros, minimum amount USD/EUR 500

Deposit term

AMD - Minimum: 3 years Maximum: 10 years

USD/EUR - Minimum: 3 years Maximum: 5 years

Interest rate

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.  

 

Build and protect your money for a better future

Today’s proper planning holds the key to secure and prosperous future. Invest your free funds in Cumulative Term deposit1, replenish and increase your savings and receive them back in the future in one-off or regular repayments during a term specified by you. Build and save your money today to ensure a better tomorrow.
Deposit currency and minimum amount
Deposit term

Armenian drams, minimum amount AMD 100,000

US dollars and euros, minimum amount USD/EUR 500

AMD - Minimum: 3 years Maximum: 10 years

USD/EUR - Minimum: 3 years Maximum: 5 years

Deposit currency and minimum amount
Interest rate

Armenian drams, minimum amount AMD 100,000

US dollars and euros, minimum amount USD/EUR 500

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.  

 

1Cumulative Term Deposit account can be opened, only if savings, current or minor account already exists. You can familiarize yourself with the list of required documents for account opening, as well as account opening and closing procedures on respective accounts pages.

Third parties can open Cumulative Term Deposit for minors only. In order to serve Cumulative Term Deposit, Minor account should be opened as well.

Example

Let’s review an example. Customer (30 year old) decides to open a cumulative Term deposit with an initial deposit amount of AMD 100,000 for a term of 10 years and interest rate of 8.00% per annum. If he saves AMD 30,000 monthly during the first ½ of Deposit accumulation period and chooses to compound the accrued interest on his Term deposit, upon turning 40, his account balance will be equal to AMD 3,233,885 (assuming the above-stated initial conditions remain unchanged for the whole term of the deposit).
    Accumulated amount
Accumulated amount
Accumulated amount
Initial deposit
Monthly savings
After 5 years
After 7 years
After 10 years
AMD 100,000
AMD 30,000
AMD 2,258,303
AMD 2,606,955
AMD 3,233,885
Let’s review an example. Customer (30 year old) decides to open a cumulative Term deposit with an initial deposit amount of AMD 100,000 for a term of 10 years and interest rate of 8.00% per annum. If he saves AMD 30,000 monthly during the first ½ of Deposit accumulation period and chooses to compound the accrued interest on his Term deposit, upon turning 40, his account balance will be equal to AMD 3,233,885 (assuming the above-stated initial conditions remain unchanged for the whole term of the deposit).
  Monthly savings
Accumulated amount
After 10 years
  AMD 30,000
Accumulated amount
AMD 3,233,885

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 for the deposit amount on a daily basis and can be paid with the following options:
  • Monthly or quarterly payment of accrued interest to the account specified by you
  • 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 deposits is subject to income tax in accordance with RA legislation.

The interest rate on a foreign currency deposit can be paid in foreign currency by which the deposit is attracted or in AMD based on respective instruction provided by customer.

Important note

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

2. The current nominal interest rate of the cumulative Term deposit can be changed by the Bank (which will result in change of the annual percentage yield) based on the change of the Bank's base rate and the Bank's fixed margin. In case of change of interest rate you will be notified at least 1 month prior to the change entering into force. In case of interest rate reduction you can terminate the deposit before the date of change entering into force and will receive the deposit amount and accrued interest in full. If the deposit is terminated after the changed interest rate enters into force interest calculation applicable for premature withdrawal of the deposit will be applied.

3. Cumulative Term Deposit Agreement is not subject to automatic renewal. Upon maturity the deposit principal and interest amount are subject to repayment as per instruction provided by customer in the Cumulative Term Deposit Agreement.

4. Deposits placed by individuals are subject to repayment at the first request of the depositor.  

Annual interest rates for cumulative Term deposits1

Currency
Bank Base Rate (BR, %)
Deposit Term
Deposit Term
Deposit Term
Deposit Term

  36 Months
48 Months
60 Months
120 Months
AMD
9.50

BR - 2.00%

7.50%

BR - 2.00%

7.50%

BR - 1.50%

8.00%

BR - 1.50%

8.00%

USD
9.25

BR - 7.75%

1.50%

BR - 7.50%

1.75%

BR - 7.25%

2.00%

 
EUR
8.00

BR - 7.50%

0.50%

BR - 7.25%

0.75%

BR - 7.00%

1.00%

 

Annual interest rates for cumulative Term deposits1

Currency

Bank Base Rate (BR, %)
 
Deposit Term
120 Months
Currency
AMD
Bank Base Rate (BR, %)
9.50
Deposit Term

BR - 1.50%

8.00%

Currency
USD
Bank Base Rate (BR, %)
9.25
Deposit Term
 
Currency
EUR
Bank Base Rate (BR, %)
8.00
Deposit Term
 

THE ABOVE RATES ARE NOMINAL AND INTEREST INCOME RECEIVED FROM TERM DEPOSITS ARE SUBJECT TO TAXATION IN ACCORDANCE WITH RA LEGISLATION.

1Cumulative term deposit interest rates in AMD are effective from 29/05/2018     

Cumulative term deposit interest rates in EUR are effective from 01/04/2018

Cumulative term deposit interest rates in USD are effective from 01/05/2018

Term deposit interest calculation is done on daily basis on total deposit balance for the entire deposit term. Daily interest rate is equal to 1/365 of applicable interest rate for the deposit type and term (for leap year 1/366 ratio is applied).

Annual Percentage Yield for Term Deposits


TERM DEPOSIT INTEREST AMOUNT IS BEING CALCULATED BASED ON THE ANNUAL NOMINAL INTEREST RATE, WHEREAS  ANNUAL PERCENTAGE YIELD (APY) INDICATES HOW MUCH WILL BE THE ANNUAL PERCENTAGE YIELD OF YOUR TERM DEPOSIT, IN CASE OF ADDITION OF THE RECEIVED INTEREST TO THE PRINCIPAL AMOUNT.
Currency
Periodicity of interest payment
Deposit Term
Deposit Term
Deposit Term
Deposit Term
    36 Months
48 Months
60 Months
120 Months
AMD

Monthly

Quarterly

7.76%

7.71%

7.76%

7.71%

8.30%

8.24%

8.30%

8.24%

USD

Monthly

Quarterly

1.51%

1.51%

1.76%

1.76%

2.02%

2.01%

 
EUR

Monthly

Quarterly

0.50%

0.50%

0.75%

0.75%

1.00%

1.00%

 

Annual Percentage Yield for Term Deposits


TERM DEPOSIT INTEREST AMOUNT IS BEING CALCULATED BASED ON THE ANNUAL NOMINAL INTEREST RATE, WHEREAS  ANNUAL PERCENTAGE YIELD (APY) INDICATES HOW MUCH WILL BE THE ANNUAL PERCENTAGE YIELD OF YOUR TERM DEPOSIT, IN CASE OF ADDITION OF THE RECEIVED INTEREST TO THE PRINCIPAL AMOUNT.
Currency
 
Periodicity of interest payment
 
Deposit Term
120 Months
Currency
AMD
Periodicity of interest payment

Monthly

Quarterly

Deposit Term

8.30%

8.24%

Currency
USD
Periodicity of interest payment

Monthly

Quarterly

Deposit Term
 
Currency
EUR
Periodicity of interest payment

Monthly

Quarterly

Deposit Term
 

The annual percentage yield is being calculated based on the formula below:

where:

A – is the initial deposit amount.

n – is the consecutive number of the Term deposit related monetary flows.

N – is the last number of the Term deposit related monetary flows (including the monetary flow at the moment the Term deposit started), after which the Term deposit agreement term is being considered as expired.

Kn – the flows of the Term deposit invested at the moment of Term deposit opening and/or during the operation of it, as well as the flows of the capitalized interests, and, if available, of the mandatory fees.

Dn – is the number that indicates how many days are passed from the moment the Term deposit has been opened till the Term deposit related monetary flows are being done, including the consecutive n-th one. In case the monetary flows are at the moment of Term deposit opening, D1 = 0.

1Cumulative Term deposit interest rates in AMD are effective from 29/05/2018. Cumulative Term deposit interest rates in EUR are effective from 01/04/2018. Cumulative Term deposit interest rates in USD are effective from 01/05/2018.

Ways to save

After you open the long term cumulative Term deposit, funds may continue to be deposited into the account at any time either by yourself or any third parties.

To replenish cumulative Term deposit you can:

  • During deposit accumulation period the customer can top up2 the deposit amount with overall AMD 5 million (for deposits in US dollars and euros, respectively USD 10,000 or EUR 10,000) or 50% of initial deposit amount, whichever is higher, during the first ⅓ of the accumulation term.
  • Customer can top up2 the deposit amount during the first ½ of deposit accumulation period via periodic written standing instructions (monthly or quarterly) provided during deposit opening, on monthly perspective being no more than AMD 250,000 (for deposits in US dollars and euros, respectively USD 500 or EUR 500) or 2.5% of the initial deposit amount, whichever is higher.


Initial deposit amount is the sum of the funds actually deposited on the deposit account during the first month after the deposit opening, which should be defined by the deposit agreement.

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

The replenishment of the Cumulative Term Deposit account is done immediately after the respective instruction is received.

You can transfer funds to the cumulative deposit via the following channels:

  • ATM network: our ATM network comprises more than 50 ATMs at over 40 locations in Yerevan where you can effect your transfers
  • Phone Banking: call us at +374 (60) 655 000 7 days a week, 24 hours a day and ask our Contact Centre agents (if registered for Phone Banking service)
  • Internet/Mobile Banking: make your transfers 24/7 via HSBC Personal Internet Banking and Mobile banking services from anywhere in the world and any time during the day, at no additional cost (if registered for Internet/Mobile banking services)
  • Branch network: you may visit any of our branches/offices to make your payment transactions in cash or via transfer

Learn how much you have already saved

You will receive monthly statements reflecting, among other information, your initial deposit amount, savings paid in to your deposit, total balance and interest paid.

The statements can be delivered to your postal address, sent via email or collected from any branch of the bank. You can familiarise yourself with conditions, terms and fees of provision of statements, copies of statements or other information by referring to Tariff of Charges and Terms and conditions.

Things you should know

Important notice

A customer's right to manage their bank account and the funds available on it can be restricted due to decisions issued by the Judicial Acts Compulsory Enforcement Service or tax authorities based on court verdict. The customer may be informed about this after the bank has executed the decision on hold.

Levy of monetary funds without order of the customer can be executed on decisions issued by Judicial Acts Compulsory Enforcement Service and tax authorities based on court verdict. The customer may be informed about this after the bank has executed the decision on levy of funds from the customer’s account.

Last updated on: 23/8/2019 06:56:59