Within the term of deposit, amount can be converted partially or fully into the following foreign currencies: GEL , USD or EURO
• Number of conversions is not limited
• Deposits subject to conversion are deposits the interest rate capitalization of which is made on monthly basis or at the end of deposit period
• Part of deposit blocked as a result of cash covery or limited overdraft on the gift card can not be converted
• Interest rates for each currency are fixed in accordance with the net of interest rates valid at the moment deposit is opened and are valid till the end of deposit period. For example: 12.50 % interest rate will be charged on depsit in GEL; 9.25% on deposit in USD and 9.00% on deposit in EURO. The given yearly interest rates will be charged on deposits in accordance with actual date of placement in each currency.
• Conversion rate is the Bank’s non-cash commercial rate valid on the date of the conversion ;
• The conversion fee amounts to 0.5% of the convertible amount. The commission fee can be charged against the principle deposit amount or against customer’s settlement account;
• Converted deposit/or its part is accrued with interest fixed from the date deposit is opened (in accordance with the currency and term of the deposit)
• Capitalization of interest rate is made in the currency and on the account indicated by customer (interest rate in the same currency is charged on deposit)
For example: time deposit with the below indicated terms has been opened:
• Deposit amount : USD 10,000
• Deposit period: 12 months (01.01.2009-01.01.2010);
• Capitalization of the interest rate – on monthly basis
• Yearly interest rate: 8.75%
Deposit amount was converted into GEL on 01.04.2009 (in accordance with the commercial rate: USD/GEL-1.6500). Before conversion, relevant one-time fee in the amount of 0.5.% is made i.e. 10.000.00x0.5%=50.00USD. Accordingly, the amount of the conversion totals 10.000.00-50.00=9 950.00 USD. The amount received as a result of the conversion is 9.950.00x1.6500=16.417.50 GEL.
• The relevant yearly interest rate of 8.75% in USD will be accrued on deposit (10,000USD) during the months of January, February and March ; and for the amount converted as of April i.e. GEL 16,417.50 the interest rate in GEL i.e. 12.00% will be applicable .
On 12.09.2009 EURO 3000 was converted into GEL and 4,500 GEL was converted into USD (commercial rate: GEL/EURO -2.1500/GEL/USD -1,6500).
The amount to be converted is 3,000x2.1500+4,500=10.950 GEL. The calculation of the commission fees is made from the same amount 10.950 x 0.5%=54.75 GEL.
The remaining deposit amount is the following :
On the USD account : 4,500/1.6500=2 727. 27 USD;
On the EUR account: 3,000 EUR;
On the GEL account: 16,417.50-10 950-54.75=5 412.75 GEL.
Within the month of September, on customer’s account will be accrued :
--yearly interest rate of 12.00% for 12 days on the amount GEL 16.417.50
-yearly interest rate of 12.00% for 18 dayes on the amount of GEL 5.412.75
-yearly interest rate of 8.75% for 18 days on the amount of USD 2,727.27
-yearly interest rate of 8.50% for 18 days on the amount of EURO 3000
