Dictionary of Structured Deposit Accounts

Dictionary of Structured Deposit Accounts
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Term

  • Account Opening Date: is the opening date of the account.
  • Term Starting Date: is the date the minimum interest starts to accumulate. It's the the first working day after the account opening date.
  • Index Opening Date: is the date the starting value of the index is determined. It's the first working day after the account opening date.
  • First Interest Rate Lock-in Date: is the first date an interest rate lock-in order can be placed. It's the second working day after the account opening date.
  • Index Closing Date: is  the date the closing value of the index is determined. It's the working day before the term ending date.
  • Term Ending Date: is the date the interest accrues and the account is closed. On the term ending date, the principal, the accrued interest and the deposit opening commission collected at the time of the account opening are deposited back into the linked current account you have specified.

Interest Rate Lock-in

From the first interest rate lock-in date until the term ending date, when the value of the index you have selected approaches your anticipation, you can lock-in the interest rate of your Structured Deposit Account.

You can submit your interest rate lock-in request through Garanti branches, Internet Banking or 444 0 333 Alo Garanti.When you lock-in your interest rate, you will be notified by SMS/e-mail and informed of your locked-in interest rate and the amount you will receive at maturity accordingly.

Early Closing

If you close your account before its maturity, you only get your principal back.

Early closing can only be done through our branches.

  • If the early closing request is placed before 14:00, your account will be closed immediately abd your principal will be deposited into your linked current account. The early closing requests placed after 14:00 will be executed at the end of the day.
  • The early closing requests placed before 14:00 cannot be canceled as they are executed immediately. The requests placed after 14:00 can be canceled until 17:00 the same day.

In case of early closing, the deposit opening commission collected from your linked current account at the time of the account opening will not be refunded.

Extension

Structured Deposit Accounts cannot be extended. At maturity, the principal and interest will be transfered into your linked current account that you have specified at the time of the account opening.

If you wish to reinvest in one of our Structured Deposit Accounts, you have to open a new account through your branch or Internet Banking.

  • Features and Benefits

    Return

    • Minimum Interest Rate: is the annual gross interest rate that will be applied independently of the index return, in the case that the account is not closed before its maturity date (early closing). If at maturity, the index return is equal to or less than “0”, then only the minimum interest is received.

    • Index Return: is the performance of the index over the course of the term of the account. The index return formulas are as follows:

    Main IndexSub IndexCurrencyRise/DeclineIndex Return Formula
    Stock Exchange ISE-30   Rise Value at Index Closing Date/ Value at Index Opening Date - 1
    Decline 1 - Value at Index Closing Date/ Value at Index Opening Date
    Securities Bill, Bond, Eurobond   Rise Value at Index Closing Date/ Value at Index Opening Date - 1
    Foreign Currency Euro/USD USD Rise Value at Index Closing Date/ Value at Index Opening Date - 1
    Euro/USD USD Decline 1 - Value at Index Closing Date/ Value at Index Opening Date
    Euro/USD Euro Rise 1 - Value at Index Closing Date/ Value at Index Opening Date
    Euro/USD Euro Decline Value at Index Closing Date/ Value at Index Opening Date - 1
    USD/TL USD Rise 1 - Value at Index Closing Date/ Value at Index Opening Date
    USD/TL USD Decline Value at Index Closing Date/ Value at Index Opening Date - 1

    • Participation Ratio: is the percentage which you will benefit from the index return.
    • Floating Interest Rate: is the annual gross interest rate that you will receive if the account is not closed before its maturity date (early closing). It is determined by multiplying the index return by the participation ratio. The minimum value for the floating interest rate is "0". The floating interest rate is calculated with the "Index Return x Participation Ratio x Number of Days In Year/Term" formula.
    • Ultimate Interest Rate: The annual ultimate gross interest rate is the sum of the minimum interest rate and the floating interest rate.

    The minimum interest rate, the index return formulas and the participation ratio are determined by Garanti Bank and vary on a product by product basis.

    Deposit Opening Commission Rate and Amount

    Determined as a certain percentage of the deposit amount and calculated over the deposit opening commission rate, the commission amount is collected from your linked current account which you have specified at the time of the account opening. In the case that you don't close your Structured Deposit Account before its maturity (early closing), the deposit opening commission amount is deposited back into your linked current account you have specified.

    The deposit opening commission rate is determined by Garanti Bank and vary on a product by product basis.

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