Information on the term deposit account for corporate clients

Special Conditions for Overnight and Time Deposits (as at August 2023)

Terminology

VakifBank Int. AG, Vienna, Branch Germany is named as VakifBank.

Time deposit (or fixed-term deposit) is a form of financial investment that is invested for a specific term with an agreed interest rate.

Sight Deposit is a form of investment with daily availability and a variable interest rate.

Term deposit settlement account (or settlement account) is an account opened in the client's name with VakifBank for settlement of term deposits. The account is free of charge.

Reference account (or contra account) is an account that is in the name of the account holder and is held at the client's house bank.

Rollover is the extension of the term of a term deposit (or time deposit).

1. account openings

Overnight or time deposit accounts are only managed as "individual accounts" or "or accounts". "And" or "guardian" accounts are not kept.

Accounts can be opened either in the branch offices or via distance selling. After receipt of the application, the legitimation is verified by Postident/Videoident. After the confirmation of the legitimation, the client will receive in writing his settlement account for the transfer of the investment amount.

The minimum investment for time deposits is EUR 5,000 and account statements are issued upon turnover.

2. overnight deposits

Overnight deposits are only held for private clients. Interest is paid on the investment upon receipt of the money at the applicable interest rate. Additional payments are possible at any time. Money calls are made by telephone, in text form or in writing. Amounts called up are only transferred to the known reference account on the same day.
Payment transactions with transfers or direct debits are not possible. In the event of a total disposal, the call account is closed and transferred to the reference account. Interest statements are prepared per quarter with interest credited to the call account. The maximum deposit amount is determined by the bank and published on the VakifBank website. If the maximum amount is exceeded, the published interest rate does not apply.

3. time deposits

When the money is received and booked, the customer receives a statement of account with the contract data. Additional payments, withdrawals and termination during the term are excluded. The interest on the investment is fixed for the agreed term. In the event of extraordinary termination in accordance with § 314 BGB, the customer can
The bank may agree to early termination subject to payment to VakifBank of the applicable fees and interest on the advance and the production of the required documentary evidence. For details of the fees and interest on advances, please refer to the schedule of fees and charges.
The interest offers of VakifBank are guaranteed until 7 working days after sending the settlement account.
The customer will be informed of the due date 2 weeks before the contract expires. Insofar as we are informed up to 2 working days before
If we do not receive instructions to the contrary at the end of the contract, the investment is made with the same term and the same
then applicable interest rate.
Interest payments value at the end of the contract in the case of fixed-term deposits of up to one year, and annually after the account opening date in the case of fixed-term deposits of several years. The bank pays the interest to the reference account without a special customer order. Interest and capital payments due are made exclusively to the reference account.

4. administration

The disposition of call money and time deposit accounts takes place by telephone, in text form or in writing.

Changes to client data and the reference account shall only be made in writing in the original and signed by all account holders. Insofar as the processing of banking transactions via online banking has been agreed with the customer, changes of address, changes of contact details, changes of
exemption orders and changes to the reference account can be carried out via online banking.

Account management is free of charge. Fees for special services are listed in the Bank's List of Prices and Services.

5. account closure overnight deposit account and settlement account

If the settlement account does not show any turnover for a period of one year and there are no current term deposits, the settlement account will be closed by VakifBank and any existing balances will be transferred to the reference account.

6. estate accounts / will / power of attorney over an account

The death of an account holder must be reported to the bank promptly by submitting the death certificate. The bank is obliged to notify the competent inheritance tax office of credit balances (from the legally prescribed amount) and safe deposit boxes as of the date of death. Upon the death of the account holder, the accounts are continued as an estate. Powers of attorney for accounts are valid beyond death; until relevant proof of inheritance is submitted. One or more persons entitled to inherit and dispose of the account shall legitimise themselves by means of a will with an opening certificate, or by means of a certificate of inheritance. Balances in escrow accounts, estate accounts and accounts of joint heirs are neither assignable nor pledgeable in whole or in part. VakifBank reserves the right to request further documents from the heirs in case of doubt. 

Powers of attorney can only be granted to one natural person. For joint accounts, the signatures of both account holders are required. The authorised person is obliged to inform the bank of his or her tax identification number. The powers result from the power of attorney document.

7. capital gains / exemption

Investment income is taxed at a flat rate with capital gains tax and solidarity surcharge. The banks are obliged to make this interest deduction for their customers. As of 01 January 2015, church tax will also be automatically withheld and paid by members of religious communities. Interest income can be exempted up to the amount stipulated by law. If a non-assessment certificate is available, interest income is tax-free - without deductions. At the end of the calendar year, the client automatically receives an annual tax certificate for the taxed/exempted investment income.
Income statement.

8. beneficial owner according to GWG

Accounts are opened exclusively for the contracting partner's or account holder's own account.
Consequently, the contracting party or the account holder is always also the beneficial owner of the deposit.

9. terms and conditions

By opening an account, the customer accepts our current "General Terms and Conditions" and the "Special Terms and Conditions for Overnight and Term Deposits". They can also be viewed at the bank or sent to the client. The place of jurisdiction is Cologne.