The FINANCIAL — TBC Bank has begun a top project. The aim is to provide satisfaction to those customers who open a deposit at TBC Bank from February 16 to December 16, 2008. Those customers will have the monthly chance to win valuable prizes and a new automobile with TBC lottery, and at the end of this event only will the major prize be up for grabs – GEL 1 million.
According to Vaktang Butskrikidze, President of TBC Bank, this event is unprecedented, as this amount of money has never featured in a lottery in Georgia before.
“This event is for those customers who open the following deposits: Term Deposits, My Safe, and Term Deposit +. The clients will then be automatically included in the event. A deposit’s minimum term range is three months and the minimum balance – GEL 2 000. Those customers who open deposits with an additional term range and balance will increase their chances of winning one of the prizes. This lottery will be broadcasted by television once a month,” Butskrikidze added.
According to Maria Dzirkvelishvili, PR Manager of TBC Bank, such events increase customer numbers by approximately 20-30%.
“The number of customers this year will supposedly grow by even more than 20-30%. This project differs from previous events organized by TBC Bank. Besides the valuable prizes, TBC Bank’s loyal customers have the opportunity to win the GEL 1 million cash prize by the end of 2008. Loyal customers are able to win a Hyundai Electra in the monthly lottery. The price of a Hyundai Electra is USD 20 thousand. At the current moment none of TBC Bank’s competitors have such prizes and this is therefore a kind of warranty of customer numbers increase,” Dzirkvelishvili added.
The conditions of the following deposits: Term Deposit, Term Deposit +, and My Safe look as follows:
Term Deposit + gives customers the opportunity to make savings by GEL, USD, or EUR 500. The deposit’s term period ranges from three to four months. Deposits’ interest rates are defined as GEL – 12, 5%, USD – 11, 5%, and EUR – 9, 5%. The given interest rate applies to two years’ savings.
“Term Deposits offer the best of both worlds – higher interest rates compared to current or savings accounts and more security than other comparable investments. Interest is high. A customer can withdraw interest upon opening the deposit. Higher balances and longer terms typically earn higher rates. Terms – Deposit term ranges from 2 to 24 months. The minimum balance Requirement – Minimum balance for the Term Deposits is USD, GEL or EUR 500,” Dzirkvelishvili said.
Deposit interests change according to the duration of depositing time and according to currency.
Long time deposits gain larger interest rates and the maximum is 13% for GEL. Three months deposits gain the following interests: 7, 00% – USD, 8, 00% – GEL, 5, 00% – EUR. Four months deposits gain: 8, 50% – USD, 9, 50% – GEL, 6, 50% – EUR. Five months deposits gain: 8, 75% – USD, 9, 75% – GEL, 6, 75 – EUR.
Six months deposits gain: 9, 00% – USD, 10, 00% – GEL, 7, 00% – EUR. Seven months deposits gain: 9, 50% – USD, 10, 50% – GEL, 7, 50% – EUR. Eight months deposits gain: 9, 75% – USD, 10, 75% – GEL, 7, 75% – EUR. Nine months deposits gain: 10, 00% – USD, 11, 00% – GEL, 8, 00% – EUR. Ten months deposits gain: 10, 25% – USD, 11, 25% – GEL, 8, 25% – EUR.
Eleven months deposits gain: 10, 50% – USD, 11, 50% – GEL, 8, 50% – EUR. 12-17 months deposits gain: 11, 00% – USD, 12, 00% – GEL, 8, 50% – EUR. From 18 to 23 months deposits gain: 11, 50% – USD, 12, 50% – GEL, 9, 50% – EUR. Deposits for two year duration gain: 12, 00% – USD, 13, 00% – GEL, 10, 00% – EUR. A customer can withdraw interest upon opening the term deposit: In the case of deposits with a 12 month maturity period, yield cutback is 1% and in the case of deposits with more than a 12 month maturity period, yield cutback is 2%.
“Deposit system My Safe keeps customers’ savings and at the same time a client can add or expend it at any time. What’s more a customer will get high benefit on the non-reducible sum monthly – likewise time deposit. Account opening, maintenance, cash deposits and withdrawals are free of charge,” Dzirkvelishvili declares.
The interest rate on the deposit My Safe is: USD – 7%, GEL – 10%, EUR – 5%. Interest is accrued on the deposit at the end of each month and a minimum initial deposit is not required.
TBC Bank is the largest Georgian bank holding 25% of total banking assets, 28% of system-wide deposits and 25% of overall loans as of 1H 2006. The shareholders of TBC Bank are International Finance Corporation (31%) and Deutsche Investitions- und Entwicklungsgesellschaft (13%), both of which have increased their stakes in Q106, and Georgian individuals (56%).
International Rating Agency Fitch Ratings revised the outlook on TBC Bank from Stable to Positive on August 28. At the same time, the agency has affirmed the banks’ ratings at Issuer Default ‘B-’ (B minus), Short-term ‘B’, Individual ‘D’ and Support ‘5’.
According to the rating agency: “a continuation of current trends in respect to both the operating environment and the bank’s financial profile could result in an upgrade.”
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