Information on the fixed-term deposit account for private clients

Special conditions for call money and time deposits
(Status August 2023)

Terminology

VakifBank Int. AG, Vienna, Branch Germany is appointed as the VakifBank called.

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 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 by distance selling. After receipt of the application, the legitimation is verified by Postident/Videoident. After confirmation of the legitimation, the customer will receive in writing his settlement account for the transfer of the investment amount.

The minimum investment is EUR 5,000 for time deposits and EUR 2,500 for overnight deposits. 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. Withdrawn amounts are transferred on the same day only to the known reference account. Payment transactions with transfers or direct debits are not possible. In the event of a total withdrawal, the call money account is closed and transferred to the reference account. Interest statements are prepared per quarter with interest credited to the call account.

The maximum investment 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 an account statement with the contract data.

Additional payments, disposals and termination during the term are excluded. The interest on the investment is fixed for the agreed term. In case of an extraordinary termination according to § 314 BGB (German Civil Code), an early termination can be complied with under the condition that the fees and advance interest due for this purpose are paid to VakifBank and that the necessary proofs are provided. For details of the fees and the advance interest, please refer to the schedule of prices and services.

VakifBank's interest rate offers are each guaranteed until 7 working days after the settlement account is sent. The client will be informed of the maturity date 2 weeks before the contract expires. Unless we receive instructions to the contrary up to 2 working days before the end of the contract, the investment will be extended with the same term and the 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

Overnight and term deposit accounts are managed 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. Provided that the processing of banking transactions via online banking has been agreed with the customer, changes of address, changes of contact details and changes of exemption orders 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

The call money account has no term and can be terminated at any time. If the credit balance falls below the minimum amount of 2,500.00 euros, the call money account is closed and the credit balance is transferred to the reference account.

If the settlement account has no turnover for more than one year and there are no current term deposits, the settlement account will be closed by VakifBank and any available 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 your 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 legally exempted amount. If a non-assessment certificate is available, interest income is tax-free - without deductions. After the end of the calendar year, the customer automatically receives an annual tax certificate or income statement for the taxed / exempted investment income.

 

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 the beneficial owner of the deposit.

 

9. terms and conditions

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