Since 7 September 2009 AB Bank SNORAS for residents and economy subjects begins to distribute a new savings product - certificates of deposits.

Since 7 September 2009 AB Bank SNORAS for residents and economy subjects begins to distribute a new savings product - certificates of deposits.  Certificate of deposit until now was not suggested in Lithuania, though throughout the world it is a very popular product, the main advantage of which is the liquidity: you are able to sell it or its part to the bank before the redemption term without forfeiting the accrued interest. The certificate’s of deposit profit is known to its holder beforehand. The annual interest of certificate of deposit comprises 9.5 percent in Litas or 5 percent in Euro.

“The new accumulation instrument, offered by Bank SNORAS is one of the most stable alternative to funds accumulation. Certificate of deposit is intended for natural and legal persons, seeking to receive the attractive fixed interest, offered by our bank; it should especially interest the clients, for whom funds‘ liquidity is important factor. I believe that such instrument now is very relevant; it is believed that many companies and residents, planning their savings, were waiting for it. Certificates of deposit are attractive also with their simplicity. It is possible to transfer them in one or another way to the person or company. The creation of such simple products is the part of constant innovative our bank’s policy. It is very important to us, that the offered products by our bank would remain useful and clear for each our client”, states Žoržas Šarafanovičius, AB Bank SNORAS deputy chairman of the Board, the director of the Retail Business Division.

Certificate of deposit is the accumulation instrument, which does not “freeze” savings. You can sell certificate of deposit or its part to the bank before the redemption term without forfeiting the accrued interest. The interest in that case is paid for the factual retained term by deducting 30 days from it.

You can accumulate in Litas or in Euro. The minimum purchase sum of certificate of deposit is 100 Litas or 100 Euro. The certificate of deposit term is one year. For the certificates of deposits 9.5 percent annual interests in Litas and 5 percent annual interests in Euro are applied.

The interest, accrued for the certificate of deposit is not imposed by the population income tax, whereas this tax is applied to the profit, received from the sale of bonds and other securities, if they are sold prior to one-year term expiration.

You can purchase certificates of deposit in all subdivisions of Bank SNORAS. It is possible to transfer (to sell, grant, etc.) them to other person or company like any other value by the order established by the law. Certificate of deposit is not insured with the deposit insurance.