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 Position :  Home >>   Corporate Banking>> Deposit Services>> Corporate Time Deposit In Local Currency  
 

 

Corporate Time Deposit In Local Currency

Definition

Corporate local currency time deposit is a deposit whose principal and interest are withdrawn upon expiry of the maturity term that is mutually determined by both the customer and BOCOM. Time deposits cannot be used for financial settlement nor can cash be withdrawn from such deposits. If customers encounter contingency needs for cash, they can apply for premature withdrawal entirely or partially.

Maturity terms and interest rate

Maturity terms for corporate local currency time deposit are 3 months, half a year, and 1 year, with a lump-sum deposit of the principal. BOCOM issues Corporate Time Deposit Confirmation (hereinafter referred to as Confirmation), with different accounts pegged to different interest-rate categories.

The minimum amount of corporate local currency time deposit is RMB 10,000. Interest accrues at the time deposit interest rate announced on the day the deposit is made, with the interests to expire on the depletion of the principal and not subject to segmental interest calculation in the event of rate adjustments. If the maturity date falls on a statutory holiday, the transfer can be made one day prior to the holiday at the depositor’s request, with interest calculation based on the rate of the full maturity period. If the time deposit is not renewed upon maturity, the proportion that exceeds the maturity period will be eligible for an interest accrual based on the current deposit interest rate announced on the day of withdrawal.

Corporate local currency time deposits may be withdrawn in full or partially prematurely, but such advance withdrawal can only be allowed once. Full withdrawal in advance will entail an interest accrual, calculated at the current deposit interest rate announced on the day of withdrawal. For partial withdrawals in advance, the interest for the proportion withdrawn prematurely is calculated at the current deposit interest rate announced on the day of withdrawal; if the remainder is no less than the deposit amount at its starting level, a new deposit confirmation certificate will be issued based on the original maturity term with the interest accrued at the same time deposit interest rate announced on the date in which the original deposit was made; if the remaining portion is less than the deposit amount at its starting level, then the account will be cancelled or the deposit can be converted to other accounts pending on the customer’s preference.

 

Procedures for opening an account:

Corporate local currency time deposit is subject to account management. When opening such an account, it is necessary to submit an account opening application, the original copy of the business license, and an imprint of the official chop.

(1)  The customer signs a transfer cheque for submission to BOCOM, which, upon its satisfactory review and confirmation, will issue a “Corporate Time Deposit Account Opening Confirmation” certificate. BOCOM will keep the first and third copies, while the second copy shall be returned to the customer as a deposit certificate with a company chop. The confirmation certificate will offer clear indication of the date, company name, account number, maturity term, amount of deposit and interest rate.

(2)   When the time deposit reaches maturity, the customer completes the withdrawal procedures at BOCOM with the second copy of the confirmation certificate endorsed by company chop.

(3)   The time deposit can be renewed upon maturity, by which BOCOM will take back the confirmation certificate, settle the interest and issue a new confirmation certificate, with the interest starting to accrue on the day of renewal.

(4)   When changing the company chop for the confirmation certificate, the customer will submit the official letter and original company chop of the confirmation certificate for the formal procedures at BOCOM. If the customer makes a loss report due to misplacement, damage or theft of the confirmation certificate, BOCOM will check the deposit upon the stop payment request made by the letter issued by the customer. If it has not been withdrawn, BOCOM will process the loss report and issue a new confirmation certificate.

(5)   For advance withdrawal of the time deposit, it is necessary to produce a written document with imprint of the official chop, giving proper reasons for the withdrawal.

(6)   Time deposits may be withdrawn as follows:

a) Lump-sum withdrawal upon maturity, with the principal and interest withdrawn as stipulated;

b) Total withdrawal in advance, with BOCOM paying out the interest calculated at the current deposit interest rate announced on the day of withdrawal.

c) Partial advance withdrawal (remaining portion is not less than the deposit amount at its starting level), with the interest calculated at the current deposit interest rate announced on the day of withdrawal, while a new confirmation certificate will be issued for the remaining portion based on the original maturity term at the original interest rate; if the remainder is less than the deposit amount at its starting level, the interest accrued will be calculated at the current deposit interest rate announced on the day of withdrawal and the account will be cancelled.



 



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