OJSC "Alokabank" also offers you to place the funds in certificates of deposit. The Certificate of deposit ascertains the deposit amount placed with the Bank and the rights of the depositor (holder of the Certificate) to receiving the deposit amount and the interest preconditioned on the Certificate to be paid on the expiry of the established period. The difference between the deposit consists in the fact that a certificate of deposit is a security and, accordingly, in case of need you can lay them, resell or repurchase, make a deal without losing their interest.
Advantages of the Certificates of Deposit:
- fixed interest rate that does not change during the whole period of assets placement;
- possibility of the transfer of rights (negotiation);
- use of the Certificate of Deposit as a collateral for the execution of liabilities before the Bank and other creditors;
- bank’s Certificates of Deposits are accepted for repayment by any branch of the Bank irrespective of the place of their issue;
- the income generated from assets placement into Certificates of Deposit with the maturity over one year are free from taxation.
Bank offers certificates of deposit with the following conditions:
- certificates of deposit with a maturity of 180 to 270 days – 8.5% per annum;
- certificates of deposit with a maturity of 271 to 360 days – 9.0 percent per annum;
- certificates of deposit with a maturity of 361 to 450 days – 9.5% per annum;
- certificates of deposit with a maturity of 451 to 540 days – 10.0 percent per annum;
- certificates of deposit with a maturity of 541 to 630 days – 10.5% per annum;
- certificates of deposit with a maturity of 631 to 720 days – 11.0 percent per annum.