BoV launches new euro denominated callable deposit

Bank of Valletta last week launched a new deposit account denominated in euro. Commenting on the new product, Mario Pullicino, executive head, wealth management, of Bank of Valletta, explained: "The euro six-year EURIBOR linked Callable Deposit is an account structured to provide potentially attractive returns to customers for the duration of the investment in a scenario where the six-month EURIBOR does not increase significantly over the lifetime of the deposit. Capital is guaranteed on maturity or early termination by the bank".

Mr Pullicino said BoV aims to help customers achieve their full potential and to offer added value. "This new product provides our customers with another opportunity to diversify their portfolio. It also shows that BoV is at the forefront of responding to customer needs through the provision of innovative solutions that cater for the requirements of an increasingly sophisticated market."

The deposit may be called and the capital paid back in full before maturity at the bank's discretion. Interest is paid on a six monthly basis.

The gross interest payment for the first year is guaranteed at 6.15%, payable semi-annually. Thereafter the interest will be variable, linked to the six-month EURIBOR. The interest rate is floored at 0.00% and can never be negative.

Therefore the new deposit features attractive interest payments in a scenario where the six-month EURIBOR remains at current levels or increases gradually. Should the six-month EURIBOR rise at accelerated rates, this would reduce interest payments after the first year.

The account can be opened with a minimum deposit of €10,000 and in multiples of €10,000 thereafter. This is a limited offer, subject to availability and subscriptions will close on August 30 or earlier at the bank's discretion.

In accordance with current tax legislation Maltese resident investors may opt to be taxed at a 15% final withholding tax (FWT) on any interest received. Investors, who are not subject to tax in Malta, will receive interest gross without deduction of FWT. Future changes in tax law or practice may affect net interest payable.

Fluctuations between depositors' reference currency and the euro may have an impact on the interest payable and on capital repayment on maturity or earlier redemption of the deposit when converting back to the base currency.

For more information visit any BoV branch or call the bank's Customer Contact Centre on 2131-2020.