Sunday 20 Aug 2017
Investment Deposit

Investment Deposit

Term investment deposits are the moneys deposited by people in the banks for investment and they choose the bank as their agent for utilizing and employing the deposit according to the stipulations set out in Usury Free Banking Operations Act.

Accepting term deposits in Mellat Bank is as follows: 

- Short-term investment deposit,
- Long-term investment deposit,

A. Short-Term Investment Deposit 

Short-term investment deposits are those deposits that are kept with the bank for at least 30 days and the amount of deposit is not less than the minimum amount set for opening the account.
The basis for calculating the short-term investment deposits is the minimum balance per day.
In this relation in order to pay interest to short-term investment deposits, the balance of the accounts must always be equal or more than the minimum amount set.
- The interest paid to short-term investment deposits is calculated at the end of the working month and will be deposited to the client’s account at the early hours of the next working day.
- Regarding those short-term investment deposits opened over the month, an interest equal to the number of days the funds are deposited will be paid to them.
- The minimum period required for interest to be accrued and paid is 3 months. So, in case the account is closed within a time interval of less than 3 months from the date of opening, the interest(s) paid will be returned.
- At present, the minimum amount for opening the short-term investment deposit account and calculating the interest is Rls. 100,000.
- No interest will be paid in the day the account is opened.
- No interest will be paid in the day the account is closed.
- Special Ordinary (Non-centralized) Short-Term Investment Deposit 
With a few differences, this deposit shares the same conditions with short-term investment deposit. Below please find the general terms and conditions of this account in Bank Mellat.
1. A deposit certificate is issued and submitted against receiving the deposit.
2. The on-account interest rate of investment deposits (including short-term, special short-term and long-term) is announced each year by Central Bank of the Islamic Republic of Iran.
3. The legal age for opening this account is 18.
4. The applicant should introduce another account with the bank (including Gharzolhassaneh current account, Gharzolhassaneh savings account or short-term investment deposit) for depositing the interest.
5. In case this account is closed before the due date, the deposit shall be subject to the provisions and regulations of the Bank, which terms and conditions have been inserted in the related contract.
6. These deposits may be extended for similar terms and amounts as the original term and amount. The holder of the account can, upon opening the account, assign the bank with option to extend the deposit in the first due date as well as in the next due dates. 
7. In case the special short-term deposit is extended, the said deposit is considered as a new deposit and it shall be subject to the provisions effective in the year in which it is extended.
8. The interest to special short-term deposits are paid on daily basis and any time the deposit is opened, the interest will accrue and paid to the customer’s interest deposit account on the first working day of the next month for the number of days the deposit is kept with the bank.
9. Withdrawal, deposit, cancellation, blocking of the account and amount, reduction and/or closing the accounts may be done in all branches.
Note: Unblocking of the account and amount, shall be possible only by the blocking establishment.

B. Long-Term Investment Deposit 

Long-term investment deposits are those deposits kept with the bank for one year and the amount of deposit shall not be less than the amount designated for opening the deposit. According to the concluded contracts, Bank Mellat guarantees the return of the principal long-term investment deposits.
Table below shows types of the long-term deposits, the minimum amount required for opening the deposit as well as the on-account interest rate in the current year in Bank Mellat:
At present, the interest to long-term deposits is calculated at the end of each month on on-account basis and paid to the client’s designated account at the first hours of the next working day.

Conditions for Opening the Account 

- The legal age for opening this account is 18.
- The applicant should introduce an account with the bank (including current account, savings account or short-term deposit) for depositing the interest.
- In case this account is closed before the due date (for 1, 2, 3, 4 and 5 year deposits), the deposit shall be subject to specific provisions and regulations, laid down in the related contract, as read and signed by the client.
- These deposits may be extended for similar terms and amounts as the original term and amount. The holder of the account can, upon opening the account, assign the bank with option to extend the deposit in the first due date as well as in the next due dates. 
- In case the special long-term investment deposit is extended, the said deposit is considered as a new deposit and it shall be subject to the provisions effective in the year in which it is extended.
- The interest to long-term investment deposits in Bank Mellat are calculated on daily basis and in case the client claims the whole or part of the long-term investment deposit in an earlier time than the agreed date, the on-account interest paid to the customer shall be analogous to the duration in which the deposit is maintained with the bank, after deducting 0.5%.
- In this relation, in case the amount of deposit is claimed in an earlier time before 30 days, no interest shall be accrued to the deposit or amount so claimed.

Transfer of Long-Term Investment and Special Short-Term Deposits 

Bank Mellat has provided the facilities for transferring long-term investment and special short-term deposits to other persons (next of kin of the depositor), and in this regard the transferor (account holder) and the transferee shall refer to the bank and take the following measures:
1. Completing the transfer application form, 
2. Endorsement of the deposit certificate by the transferor, with the signatures of the transferor, the transferee and the bank having been affixed thereto,
3. Introducing an account for deposit of interest by the transferee and submission of the deposit certificate to the transferee by the bank,

Withdrawal from Long-Term Investment Deposits and Special Short-Term Deposits 

The holders of long-term investment deposits and special short-term deposits with Bank Mellat can, if required, withdraw part of their money in the deposit. To do this, the client should refer to the branch and complete the withdrawal form. In case of withdrawal from these accounts before the due date, the interest paid to the client will be adjusted.