Discounted Certificate of Deposit
TBC zero-coupon CDs pay the highest yield and are easy to sell. A certificate of deposit (CD) is a short-term security whereby the Bank undertakes certain liabilities towards the CD owner. Zero-Coupon CDs are sold at a discount but pay out the full face value at maturity. The difference between the discounted price and the face value is the yield earned by the CD owner, which the bank pays at maturity.
Coupon Deposit Certificate
TBC CDs are easy to sell and can be pledged as loan collateral. A certificate of deposit (CD) is a short-term security whereby the Bank undertakes certain liabilities towards the CD owner. CDs are sold at face value, pay interest monthly and are redeemed at maturity likewise at face value.
3-5 Months |
Annual |
9.60% |
9.50% |
Effective |
10.38% |
From 10.36% |
|
6-8 Months |
Annual |
10.15% |
9.95% |
Effective |
10.46% |
From 10.97% |
|
9-11 Months |
Annual |
10.35% |
10% |
Effective |
From 10.53% |
From 10.47% |
|
12-17 Months |
Annual |
10.50% |
10.05% |
Effective |
From 11.55% |
From 11.52% |
|
18-23 Months |
Annual |
10.75% |
10.05% |
Effective |
From 11.38% |
From 11.35% |
|
36-47 Months |
Annual |
12.00% |
10.30% |
24-35 Months |
Annual |
11.10% |
10.10% |
Effective |
From 11.36% |
From 11.41% |
|
Effective |
From 11.2% |
From 11.19% |
|
48-59 Months |
Annual |
12.80% |
10.40% |
Effective |
From 11.11% |
From 11.13% |
|
60 Months |
Annual |
13.70% |
10.50% |
Effective |
From 11% |
From 11.02% |
The interest rates are the same for residents and non-residents.
Early Withdrawal Charges
If a CD owner cashes out his/her CD before the maturity date, he/she will incur an early withdrawal charge that equals the CD’s remaining yield to maturity plus 4%.
Terms and Conditions
- Type of CD interest rate: Fixed interest rate;
- The purchase of a CD is free of charge;
- Cash-out commission in GEL: 0,2 % of the CD; Cash-out commission in foreign currency: 0,6 % CD;
- Min amount 5000 unit
- The evidence of CD ownership is a record made into a respective registry;
- TBC Bank issues to the CD owner an extract from the registry and the parties conclude the Certificate of Deposit Agreement;
- No extra payments are allowed on a CD;
- The accrued interest is not subject to taxes;
- A CD owner can transfer the CD to any third party without seeking the Bank’s approval;
- The Bank reserves the right to deny CD redemption
- A fee for CD transfer is 0.1% of its face value, at least 50 GEL;
- The CD transfer fee shall be paid at TBC Bank;
- The certificate holder has the right to redeem the certificate of deposit ahead of time.
- It is possible to roll over a CD at maturity;
- A CD owner can pledge his/her CD on a loan amounting up to the CD price at purchase. The annual interest rate on the loan will equal CD interest rate plus 3%. For example, if the annual interest rate on a CD is 8.5%, a loan secured by that CD can be disbursed at annual interest rate 8.5%+3%=11.5%.
- The deposit in the foreign currency puts the customer before significant risk.
- Currency rate fluctuation might considerably reduce the interest expressed in GEL.
- Your deposit is insured under the Deposit Insurance System in compliance with the Law of Georgia on Deposit Insurance System.
- If the Main Terms of the Agreement are revised, the customer will be notified thereof via SMS no later than 2 (two) months in advance, while price increase on other financial facilities will be communicated via SMS no later than 1 (one) month in advance.
- The customer shall have the right to present a claim to the Bank in verbal, written, standardized written or electronic form
- See information useful for customers at the web-page of the National Bank of Georgia- www.nbg.gov.ge/cp and the hot line +99532 2406 406.
On 1 January 2018, the Bank joined the Deposits Insurance System set up based on the Law of Georgia on Deposits Insurance System. If an insured event occurs, the amount available in the deposit/account of a depositor will be refunded by the Deposits Insurance Agency within the limit of 30 000 GEL, while the remaining amount will be refunded as envisaged by the applicable law. For more information, go to the Deposits Insurance Agency’s website: www.diagency.ge.