Child deposit

1. The type of child deposit – term
2. The interests on the deposit accrue from the moment the deposit is placed with the Bank till the day preceding its recovery to the Depositor.
3. The interest shall be capitalized twice a year (on January 10th and July 10th) and be added to the deposit amount. The interest amount continues to accrue towards the total added amount from the day of entering amounts.
4. The interests are calculated based on the balance of placed deposit amount also based on added amounts and capitalized interests to deposit balance during agreement term period.
5. The deposit can be accrued at any time and with any amounts up to the 60th day prior to the expiry date of the deposit.
6. In case of requiring the deposit or the part thereof before the term mentioned in the agreement, accrued interests are paid to the customer, except the period between the last accrual date and deposit requirement date, for which interests are calculated at 0%.
7. Should the deposit not be demanded after the expiry of the Deposit term, till the deposit is actually be demanded interest on it shall accrue at the rates set for the monetary funds available on bank accounts.
8. The Bank can’t unilaterally decrease the interests specified in 2.1 paragraph of the Agreement provided that the deposit is repaid within the term set forth in paragraph 2.1 of the Agreement.
9. Based on long-term cooperation between the Bank and a customer, the volumes of the customer’s transactions and other reasonable grounds, the Bank may apply other tariffs and terms which are defined by other documents and (or) additional agreements, contracts.
10. The deposit cannot be replenished by third parties.
    - The authorities of other persons to use and manage the deposit shall be approved should such authorities be issued by a notarized power of attorney or by the Depositor at the bank in the presence of the Bank’s officer and approved and signed by a written power of attorney.
11. The bank shall provide the depositor (Investor) with a statement on their deposit account at the periodicity specified in the Agreement, no later than once a month, through the method of communication specified in the Deposit Agreement or in the Depositor’s application with the exception of cases when over the accounting period the account has not been debited or credited, moreover, to provide a statement on the account within 5 days after such request by the depositor at the tariffs set by the bank.
12. In case of contract disputes the depositor applies to the Bank in written form and gets the answer on its application during 10 business days. In case of disagreement, the depositor has the right to apply to court or to the Financial System Mediator.
13. There is no limit for the placement of minimum initial amount of child deposit
14. The bank acts as a tax agent for individual clients. Interest paid on deposits is subject to taxation according to the provisions of Section 7 of the RA Tax Code
15. The deposits are guaranteed by the Armenian Law on “Guaranteeing the Recovery of Deposits of Individuals”;

• In case of AMD bank deposits, the guaranteed amount of the deposit makes up to AMD 16 mln;
• In case of foreign currency bank deposits up to AMD 7.0 mln;
• In case of AMD and foreign currency deposits, if AMD dram deposit is more than AMD 7.0 mln then only AMD bank deposit is guaranteed up to AMD 16 mln;
• In case of AMD and foreign currency deposits, if AMD deposit is less than AMD 7.0 mln then AMD deposit is guaranteed fully and foreign currency bank deposit at the extent of AMD 7.0 mln and the difference of remunerated dram deposit.

15. On the purpose of due diligence of the customer envisaged by RA law on “On combating money laundering and terrorism financing”, the financial institution may request additional documents or other information from the consumer based on > principle, as well as ask the consumer additional questions during oral communication(in case of presence of such a request)

16. In compliance with the agreement signed with USA, to find out if you are a US tax payer, financial institutions may collect additional information about the agreements, contracts, cooperation, membership signed by financial institutions, which may have a direct impact on the consumers (e.g. Foreign Account Tax Compliance Act (FATCA)).

17. YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL INSTITUTION IN THE WAY YOU PREFER, BY MAIL OR ELECTRONICALLY. RECEIVING INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, IS FREE FROM THE RISK OF LOSING PAPER INFORMATION AND ENSURES PRIVACY. 5

18. “YOUR FINANCIAL INFORMANT” IS AN ELECTRONIC SYSTEM WHICH SEARCHES AND COMPARES THE SERVICES OFFERED TO INDIVIDUALS AND FACILITATES THE SELECTION OF THE MOST EFFECTIVE OPTION FOR YOU”- www.fininfo.am/avand

19. To place a deposit the depositor should submit the below mentioned documents:

• Identification document
• Document including the public service number (for the RA citizens)
• Additional documents and information may be required due to various circumstances.