“For Kids” deposits


 

 

By investing the deposit “For Kids” today you will take care of your children’s well-being in the future. The deposit account “For Kids” will be opened in the name of the parent. You may later add any amount to it at any time, capitalize accrued interests and add to principal, withdraw the principal amount of deposit leaving the accrued interest amount unchanged, make use of credit lines, get loans under credit programs of ARARATBANK OJSC at preferential interest rates, and get an ArCa Classic card of individual design.

Terms of Deposit

Period ՙInterest rates of deposit “For Kids”
2-18 years AMD USD
10.50% 5.25%


Notes

  1. Minimum deposit amount is AMD15,000 (fifteen thousand) or USD50 (fifty).
  2. Deposits may be topped up during the whole period of agreement except during the 30 (thirty) days preceding maturity date of the Agreement.
  3. The interest rate of the deposit shall be fixed for two years and shall be revised once in every two years thereafter.
  4. Accrued interests are subject to taxation at the moment they are paid out to the customer as provided by the Armenian Law on Income Tax.
  5. If the depositor claims the deposit principal before the second anniversary after the deposit agreement has been executed, an interest rate of 0.1% per annum shall apply over that amount for a period between the date the deposit was invested and the date the deposit was claimed, and any amounts paid in excess of recalculated interest shall be withheld from the principal amount of deposit.

Advantages of deposit “For Kids”

  • Interests may be paid on annual basis by crediting them on the Customer’s bank account or card account, as the Customer may choose, and may be capitalized and added to the principal once in a year.
  • If the deposit amount is claimed after the second anniversary of the deposit agreement, the interest rate applicable for deposit “For Kids” shall apply starting the date the deposit was invested through the date preceding the day of claiming the deposit, except for the period lying between last interest payment date and the date of claiming the deposit, such period being subject to an interest rate of 0.1% per annum.
  • At his/her discretion the depositor may be issued an ArCa Classic card of an individual design with no annual maintenance fee.
    • At his/her discretion the depositor may be approved a line of credit with a maximum limit of 80% of the deposit amount until the maturity date of the deposit, at the annual interest rate of the deposit +2%.
  • The depositors will be provided a discount of 0.5% over the per annum interest rate of the loans they may get under the credit programs implemented by ARARATBANK OJSC.

Attention

Interest amounts on the funds available on the account shall be calculated based on nominal interest rate. Annual interest income shows the amount of income to be received by the DEPOSITOR if interest amounts on deposit were reinvested in the form of deposit. Calculation order of annual interest income is presented below:

Currency Deposit amount Annual nominal interest rate Interest income of available funds calculated with nominal interest rate set after a 2- year period Interest income* set after a 2- year period Interest income calculated with set nominal interest rate in the event of interest capitalization Interest income* set in the event of interest capitalization
Kids Deposit
For a 2-year period AMD 100000 100 000 AMD 20 000
AMD
20 000 AMD* However, accrued annual interests are subject to taxation at the moment they are paid out to the customer as provided by the Armenian Law on Income Tax. Moreover, in this case the bank is a tax agent for income tax, hence, the interest income set will make up AMD 18 000. 19 900 AMD 19 000 AMD* However, accrued annual interests are subject to taxation at the moment they are paid out to the customer as provided by the Armenian Law on Income Tax. Moreover, in this case the bank is a tax agent for income tax, hence, the interest income set will make up AMD 18 810.


Deposits with ARARATBANK are guaranteed by the"Deposits Compensation Guarantee Fund". Both deposits (accounts) in Armenian drams and in foreign currency of either individuals or entrepreneurs are guaranteed. Maximum guaranteed amount for deposits in Armenian drams is 4 million drams, and 2 million drams for deposits in foreign currency. No actions shall be taken by the depositor to guarantee his deposit. From the moment the amount is deposited it is deemed guaranteed.

The Bank is not responsible for correctness and validity of the referred sites, for advertisements contained in them and possible consequences arising from the use of information.

 

Please refer to ` https://www.abcfinance.am/finhelper/index.php?type=deposit to get understanding of the system of financial assistance.






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