The procedure of opening, servicing, controlling and closing banking accounts
Money Classification procedure
The money in the clients’ accounts is considered a demand deposit which is guaranteed in accordance with the Law of RA “On procedure and terms of the guarantee of deposit compensation”. Annual nominal interest and annual percentage rate are accrued on both demand deposit and term deposit. Annual nominal interest rate is the rate defined by the Bank on which the majority of deposit interests are accrued.
Annual percentage rate shows the annual deposit profitability as a result of making obligatory payments and adding interests to the main deposit amount.
Interest accrued on the settlement account is added to the amount on bank accounst on the last day of every month (to the demand deposit).
To find out about the procedure of calculating the annual percentage yield of bank deposits, click here
Account holders’ rights to manage accounts and amounts on them may be limited by the court’s jurisdiction based on a written application by Judicial Acts Compulsory Enforcement Bodies or tax authorities. Withdrawal of money from the accounts of the account holder can be carried out on the basis of a court decision based on the application filed by the judicial acts compulsory enforcement bodies and the tax authorities. In case of limiting the rights of the Account Holder on the basis of the Judicial Acts Compulsory Enforcement or Tax Authorities, the Bank has no obligation to notify the Account Holder thereof. The Client may be informed about the restrictions of the account in case of a visit to the Bank and a wish to make a transaction. The Bank will not be liable to notify the Account Holder about confiscation of funds.
DEPOSIT GUARANTEE FUND OF ARMENIA
Bank deposits are guaranteed in accordance with the Law of RA by the deposit guarantee fund of Armenia.
The guaranteed limits of deposits are:
- AMD 4 million in case of AMD deposits
- AMD 2 million in case of a foreign currency
- Only AMD deposits are guaranteed in the amount of AMD 4 million in case of both AMD (more than AMD 2 million) and foreign currency deposits (up to AMD 4 million)
- Both AMD (less than AMD 2 million) and foreign currency (up to AMD 2 million) deposits the one in AMD is fully guaranteed, and deposit in foreign currency is guaranteed in the amount of the difference between 2 (two) million Armenian drams and the guaranteed deposit in Armenian drams.
All deposits of one person in AMDs in the same bank is considered to be one deposit, and those in foreign currencies are also considered one deposit.
Collateral is a separate deposit in the amount of contractual part.
No action or compensation is required from depositor for guarantee.