Monday, 18 September 2017 11:15


Rate this item
(20 votes)

Major types of domestic/local deposit product accounts are:

  1. Saving Account;
  2. Demand/Checking Account;
  3. Fixed Time Deposit Account;

I. Saving Account

  1. Ordinary Saving Account


  • 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  • withdrawn by properly filling a withdrawal slip;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


  • 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

  1. 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.
Read 13631 times Last modified on Tuesday, 26 June 2018 06:10
More in this category: Local Money Transfer »
© 2021 Coop Bank of Oromia. All Rights Reserved. Designed By HighTech