Fixed Time Deposit

11/23/2023 1
 Fixed Time Deposit

 Money deposited in a bank for a fixed period at specified rate of interest agreed by a contract.

 Depositors are issued a deposit certificate as evidence for their deposit.

Fixed time deposit carry with a minimum maturity period of six months and cannot be
withdrawn before the maturity period to earn the higher interest rate.

 The rate of interest varies according to the amount and the duration of deposit.
 That is the higher the amount and the longer the deposit remains in the possession of the
bank, the higher the interest rate to be earned

11/23/2023 2
 Fixed Time Deposit----------Cont’ed

The bank shall have a list of amount and deposit time period along with the
corresponding interest rate.

The amount and the time that shall updated from time to time as deemed necessary.

The minimum amount of deposit and duration to accept as fixed time

deposit is Br.50,000 and six months respectively.

The customers who prefer to withdraw the deposit before the contract
expiry are expected to log his/her request in writing

11/23/2023 3
 Fixed Time Deposit-----------Cont’ed

 If the customer prefers to withdraw before expiry of the contact, he /she

is not entitled to any interest.
 The accumulated interest on fixed time deposit becomes forfeited in
accordance with the agreed contract.

 When a customer enters in to fixed time deposit with the bank, he/she
should maintain an account in the bank which serves as takedown
account.

 The customer should fill the standard application form designed for fixed
time deposits.
11/23/2023 4
FTD-----------------------------------Cont’ed

 All the particulars should be properly filled and customer signature on the
application has to be verified.

 All fixed time deposits shall be pre checked by ICO before the contract is signed
by the parties.

 Once the deposit is held in the fixed time deposits, the time deposit certificate is
issued containing the below points.
 - Issuance date of the certificate.
 - Expiry date of the certificate.
 -Beneficiary (Customer)Name
 -Agreed Amount and Interest Rate
11/23/2023 5
FTD---------------------------Cont’ed

 Fixed time deposit period and minimum amount can be adjusted from time
to time subject to top management approval.
 Contract Initiation on CBS.
 once the customer and the bank agree on the amount and period of the
contract but before issuance of the time deposit certificate, a maker
transfer the amount to fixed time deposit account against debit of
takedown account.
 A manager or CSM approves the initiated contract after ensuring the
correctness of the data as per agreed contract.

11/23/2023 6
FTD-----------------------------Cont’ed

 settlement of fixed time deposit is made based on the expiration of the

agreement stated on the terms of fixed time deposit contract or

 by the request of depositor up on the presentation of the certificate.

 If the settlement is up on expiration of the contract, the principal and the

accrued interest should be transferred to the customer’s account, usual to
the takedown account.

11/23/2023 7
FTD---------------------------Cont’ed

 If the customer fails to claim the amount up on maturity of the contract,

the following should be done by the bank.
 - the bank manually liquidates the contract.
 - transfer the amount with accrued interest to the
takedown account.
 -and block the amount until the original certificate is returned.

11/23/2023 8
FTD-Renewal------------------------Cont’ed

 The fixed time deposit can be renewed for further period subject to the
agreement of the contracting parties.
 Fixed time deposit can be renewed .

 - By capitalizing the accrued interest to the principal amount or

 liquidating the accrued interest and renew the principal balance.

 Up on renewal, the existing contract is discarded and a new contract is

established

11/23/2023 9
FTD---------------------------------Cont’ed

 When fixed time deposit certificate is reported lost, the customer should
sign undertaking to take responsibility for any claim that may arise.

 The loss should have reported to BOCPD so that the department circularize
the loss to all branches.

 The branch that maintains the deposit can pay or settle based on the
conditions agreed on the contract.

11/23/2023 10
The End!
Q&A

11/23/2023 11