1 We only offer standard terms online for Fixed Term Deposit products. If you would like to apply for bespoke term lengths or you need to select specific start and end dates for your deposit, call us on 0345 305 5555. We are available 8am to 5pm Monday to Friday. The interest rates payable on BOV Term Deposit Account are available here. All Term Deposit Accounts for balances up to €500,000 (or its equivalent in FC) attract the Bank's current published rates. Interest rates on Term Deposit Accounts with balances over €500,000 (or its equivalent in FC) will be quoted upon request. Fees and Charges.
Providing you with term deposit account facilities.
Features & Benefits
- With a minimum deposit of only BND 1,000.00, you can enjoy higher returns than a regular savings account while planning for your finances
- Shariah compliant term deposits accounts
- Choose the tenor of your term deposit period: 1, 3, 6, 9, 12 , 24 & 36 months
- The profits are paid on maturity and may be reinvested with the deposit amount
- Deposits may be made in cash, cheque or by direct account transfer
- Shariah Concept
- Wakalah
The Depositor ('Muwakkil') enters into a Wakalah Agreement with the Bank ('Wakil') and deposits a certain amount of money to the Bank to be utilized and invested in profitable Shariah-compliant transactions. The Depositor will be offered the expected profit rate from the Investments and the Bank will earn a Wakalah fee for the service rendered. Any amount that the Bank earns in excess of the Depositor's expected profit (after deducting the Wakalah fee) will be retained by the Bank as incentive
- Wakalah
- Eligibility
- Brunei Citizens and Permanent Residents
- Foreign Citizens with valid work / student permit
- Individuals aged 18 and above
- Requirements
- Minimum opening deposit of;
BND 1,000.00 for term period of 3 months or longer
BND 5,000.00 for term period of 1 month
- Minimum opening deposit of;
- Profit Distribution
- No profit for termination of term deposit less than 1 month
- Profit, at the Bank’s discretion, may be paid proportionately to the completed months at the prevailing rate at the time of termination
For more details, please refer to the Bank's Schedule of Tariffs or the list of applicable rates for this product.
Please read this Product Disclosure Sheet before you decide to take the BND Term Deposit Account. Be sure also to read the General Wakalah Terms and Conditions of Deposit Products.
Click to view General Wakalah Terms & Conditions of Deposit Products in English and Malay.
Guaranteed protection up to maximum BND 50,000.00 per depositor under the Deposit Protection Order 2010.
A time deposit or term deposit (in the United States also known as a certificate of deposit) is a deposit in a financial institution with a specific maturity date or a period to maturity, commonly referred to as its “term”. Time deposits differ from at call deposits, such as savings or checking accounts, which can be withdrawn at any time, without any notice or penalty. Deposits that require notice of withdrawal to be given are effectively time deposits, though they do not have a fixed maturity date.
Unlike a certificate of deposit and bonds, a time deposit is generally not negotiable; it is not transferable by the depositor, so that depositors need to deal with the financial institution when they need to prematurely cash out of the deposit.
Time deposits enable the bank to invest the funds in higher-earning financial products. In some countries, including the United States, time deposits are not subject to the banks’ reserve requirements, on the basis that the funds cannot be withdrawn at short notice. In some countries, time deposits are guaranteed by the government or protected by deposit insurance.
Interest[edit]
Time deposits normally earn interest, which is normally fixed for the duration of the term and payable upon maturity, though some may be paid periodically during the term, especially with longer-term deposits. Generally, the longer the term and the larger the deposit amount the higher the interest rate that will be offered.[1]
The interest paid on a time deposit tends to be higher than on an at-call savings account, but tends to be lower than that of riskier products such as stocks or bonds. Some banks offer market-linked time deposit accounts which offer potentially higher returns while guaranteeing principal.
At maturity[edit]
At maturity, the principal can be either paid back to the depositor (usually by a deposit into a bank account designated by the depositor) or rolled over for another term. Interest may be paid into the same account as the principal or to another bank account or rolled over with the principal to the next term.
The money deposited normally can be withdrawn before maturity, but a significant penalty will normally be payable.
See also[edit]
What Is A Term Deposit
References[edit]
Bank Term Deposits
- ^'Time Deposit'. Investopedia. 2003-11-24. Retrieved 2016-11-01.