Having a bank account allows you to make settlements with legal entities and individuals for the services provided.
The amount available in the customer's bank account is considered a demand deposit, which is guaranteed in accordance with the RA Law “On guarantee for Compensation of Individuals' Bank Deposits”. An annual nominal interest rate and an annual percentage yield are accrued on demand and time deposits.
The annual nominal interest rate is the interest rate set by the bank, on the basis of which the amount of deposit interest is calculated.
The annual percentage yield (APY) is the real rate of return earned on an investment, as a result of making mandatory deposit payments and taking into account the effect of compounding interest. The interest accrued on the amount in the settlement account is accumulated on the last day of each month in the amount of the bank account (demand deposit). Here you can find the formula to calculate the annual percentage yield of your bank deposits.
For the purpose of proper examination of the client defined by the RA law “On Combating Money Laundering and Terrorist Financing”, the consumer may be requested to submit additional documents or other information, as well as be asked additional questions during oral communication, based on the “Know your customer” principle.
The rights of the account holder to manage the account and the funds on it may be restricted by a court decision on the basis of an application from the bodies that ensure the execution of judicial acts or tax authorities. The confiscation of funds from the account without the order of the account holder may be carried out on the basis of an application submitted by the bodies ensuring the compulsory execution of judicial acts and the tax authorities on the basis of a court decision. In case of restriction of the accountant's rights based on the decision of the Judicial Acts Compulsory Enforcement Service or the tax authorities, the Bank has no obligation to inform the account holder. The customer can be informed about the account restriction if they want to visit the Bank and make an account transaction. Moreover, when confiscating the account holder's funds, the Bank is not obliged to inform the account holder about it. The deposits placed in the Bank are guaranteed by the Individuals’ Deposit Guarantee Fund, in accordance with the legislation of RA.
The guaranteed deposit limits are as follows:
a) if the depositor has only an AMD deposit in an insolvent bank, the guaranteed deposit limit is 16 million AMD.
b) if the depositor has only a foreign deposit in an insolvent bank, the guaranteed deposit limit is 7 million AMD.
c) if the depositor has both an AMD and foreign deposits in an insolvent bank, and the sum of the AMD deposit is over 7 million AMD, only that deposit is guaranteed for up to 16 million AMD
d) if the depositor has both an AMD and foreign deposits in an insolvent bank and the sum of the AMD deposit is less than 7 million AMD, the deposit in AMD is fully guaranteed, while the foreign currency bank deposit is guaranteed in the amount of the difference between seven million drams and the reimbursed dram-denominated bank deposit.
