Major types of domestic/local deposit product accounts are:
- Saving Account;
- Demand/Checking Account;
- Fixed Time Deposit Account;
I. Saving Account
- Ordinary Saving Account
Features:
- It is an interest bearing deposit account
- The minimum balance to open the account is Birr 50.00;
- withdrawn by properly filling a withdrawal slip;
- Operated by a passbook and an ATM-Card;
- It can be opened and/or operated by a legal agent in the name of principal, against producing a power of attorney;
- No restrictions on the number and amount of deposit and withdrawal unless restricted by pertinent bodies;
Advantages of Ordinary Saving Deposit
- Encourages saving culture/habits of the society;
- Enables the depositor to earn income through interest ;
- Helps the depositor to make fund transfer;
- Paying through ATM/POS cards, internet & mobile and etc.;
- It provides immediate cash as and when required;
- It gives record of all transactions for the customer.
B. Sinqe Women’s Saving Account
Features & Benefits:
- Tailored for women aged 30 years and above;
- opened individually;
- Accompanied by separately branded debit cards;
- Zero Minimum deposit requirements for opening the account;
- Enjoy higher interest rate and other benefits attached to the product.
- It develops saving habits of women and the general public;
- Builds up future planning;
- Encourages finical independency for the women
C. Youth Savings Account
Features & Benefits:
- It is an account for male and female youth in the age group 15-29 years;
- Zero minimum deposit requirements;
- It is accompanied by debit card;
- It has no transaction fee and free account maintenance;
- Gain higher interest rate compared to ordinary saving account.
- Develop saving habits of self employed teen-youth;
- It builds up future planning;
- It gives financial independency for the youth.
D. Gamme-Junior Account
Feature & Advantages
- Saving Account for children aged 0-15 years in the name of the child;
- Administered by parents/guardian until the child becomes able to do so;
- Opened and operated by the parents jointly, or by the parent or guardian, or solely by themselves (as the case may be);
- Birth certificate or any evidentiary document issued by pertinent organ needed;
- If the parent/guardian becomes incapable to exercise their power of guardianship for various reasons, another guardian is appointed by the law;
- Payment is enabled to the junior when he/she attains the age of youth.
- No minimum amount requirement to open the account;
- No transaction and account maintenance fees;
- No debit card is issued on this account;
- Gain higher interest rate and enjoy other benefits attached to the product;
- Develop saving habits and build up future planning.
E. Special Saving Account Features
Feature:
- Interest bearing account operated by a cheque;
- It is account opened for prominent customers of branch;
- Opened or operated by literate customers only;
- The customer should not be in delinquent list;
- No passbook is required for such accounts;
II. Demand Deposit Account
- Ordinary Demand Deposit Account
Basic features:
- It is current or checking account which is a non-interest bearing;
- It is opened or operated by literate customers only;
- The minimum amount required by the bank to open for individual trader is birr 500.00 and for organizations/companies Birr 1,000.00 ;
- The account opening customer should not be in the blacklist;
- No restrictions on the number and amount of deposits & withdrawals;
- It can be opened and/or operated by a legal agent in the name of principal, against producing a power of attorney;
- The bank shall issue account statement to the customer on monthly basis.
Advantages Ordinary Demand Deposit Account is:
- It facilitates/makes easy business transactions;
- It enables to carry out transactions properly and promptly;
- The account holders withdraw without any limit;
- It helps make a direct payment to their creditors by issuing checks;
- It enables the bank to collect money on behalf its customers;
- Customer’s account statement is monthly issued by the bank;
- Multi-location fund transfers.
B. Special Demand Deposit
- It is a checking account which bears interest less than the minimum interest rate of SA set by the NBE(determined by the bank);
- All its features & advantages are the same with ordinary demand deposit account except the above mentioned one;
C. ECX Related Accounts
- Special Pay-in or Pay-Out account for the members of the ECX to facilitate the trading of Commodity at ECX;
- Opening request is lodged by the ECX through an account opening facilitation letter to the bank.
III. Fixed Time Deposit
- Received for a fixed period of time with negotiable interest rate (normally higher than the prevailing saving interest rate);
- certificate of deposit(CD) is issued;
- Withdrawal is not allowed prior to the maturity date;
- withdrawn before due date forfeits the higher interest rate;
- Can be renewed for a further period;
- Interest is calculated only for the duration of the certificate,
- No interest will accrue after expiry;
Advantages of fixed time deposit
- It encourages saving habits for a longer period of time;
- Earning higher interest rate;
- On maturity the amount can be used for planned expenditure;
Types of foreign currency account may include:
A. Non-Resident Transferable FCY Accounts (NRT FCY)
- Maintained in foreign currency and
- Can be transferred abroad without obtaining foreign exchange permit;
B. Non-Resident Transferable Birr Account (NRT)
- Account maintained in Birr
- Funds can be transferred abroad in foreign currency without the obtaining foreign exchange permit
- All sources deposits should be in foreign currency;
C. Non-Resident Non-Transferable Birr Account (NRNT)
- Account opened to meet their local expenses;
- The account is designated as '' Non-Transferable Birr Account''
- All sources for deposits should be in foreign currency;
D.Foreign Exchange Retention Accounts
- Accounts opened for exporters and recipients of inward FCY remittance (Foreign Currency retention A & B accounts)
E. Foreign Currency accounts/Diaspora Account
- Foreign currency Account opened in the name of Ethiopian and foreign nationals of Ethiopian origin.