Fixed Time Account
It is an account which takes the form of a deposit certificate issued in the name of the depositor. The maturity period may vary based on the agreement made between the depositor and the bank. However, the minimum maturity period for such an account shall be three months. This account can be closed upon request by the depositor with prior notification of not less than seven working days.
Withdrawal of the fund before maturity is subjected to the interest penalty. If a fixed deposit is not closed on maturity, the bank in consultation with the depositor may renew its agreement.
The bank and the depositor will reach an agreement on the rate of interest on this account. Interest income on non-resident foreign currency fixed deposit account shall be free from income tax.
Features
- It is an interest-bearing account with an agreed maturity date,
- The amount needed to open the account shall at least be USD 100 or its equivalent of the eligible currency,
- The minimum maturity period is three months that could be opened with an initial deposit of USD 5,000
- Interest on such accounts shall be payable only if they are maintained at least for the minimum period.
Benefits
- Interest income on such accounts is tax-free.