Erste Bank lowers minimum starting amount  for active time deposit savings with premium

Zagreb, 26 October 2015 – Erste&Steiermarkische Bank d.d. (Erste Bank) has lowered the minimum starting amount for the Active Time Savings Deposit With Premium from HRK 700 to HRK 100, thus making time deposit savings even more accessible to its clients. Clients may deposit funds denominated in kunas, euros, US dollars or the Swiss francs for a term of over 6, 12 and 24 months.

The Active Time Deposit Savings With Premium allows clients to repeatedly deposit funds in the same savings account until maturity; the clients can choose when to deposit funds and how much. With Active Savings With Premium clients are eligible to receive not only interest but also an additional 15% premium on interest so long as they are a client of the bank (they have a current or a foreign currency account at Erste Bank via which they receive income such as salary or pension).

The interest rates on the savings depend on the currency in which the savings are denominated and the amount of funds in the savings account. The interest rates on kuna savings range from 2.25% on time deposits with a maturity of over 6 months, to 2.70% on time deposits with a maturity of over 24 months, regardless of the amount. The interest rates on euro savings range from 1.20% on time deposits with a maturity of over 6 months (for amounts of up to EUR 9,999.00) to 1.85% on time deposits with a maturity of over 24 months (for amounts of up to EUR 50,000.00). The interest rates on the savings are fixed and the interest is paid out in a single instalment, together with the principal at maturity. In addition to the regular interest rate, the bank also offers a premium if the client does not withdraw the funds before the maturity date. The premium is calculated as the percentage of the total interest and the premium rate is fixed. 

A time deposit savings account can be opened at every Erste Bank branch office or via the bank's electronic banking services (NetBanking and mBanking), through which subsequent deposits into the savings account can be made as well. Subsequent deposits into the savings account can also be made via a standing order.

As of 30 September 2015, the Active Savings With Premium was used by around 18.300 of Erste Bank clients who saved a total of HRK 1.4bn. Clients mostly choose to deposit funds for terms of over 6 months and over 12 months, and their deposits are most frequently denominated in euros.

In general, Erste Bank's retail savings segment has been continuously recording stable results. As of 31 August 2015 retail deposits stood at around HRK 25.2bn, which is around 3.6% higher compared to 31 August 2014 when they stood at HRK 24.3bn. According to latest available data for the end of July 2015, Erste Bank's share of the retail savings market stood at 13.02%, slightly higher compared to the beginning of the year when it stood at 12.87%.