Term Deposit
- A possibility to deposit your free funds conveniently
- Term deposit for a certain term with a fixed interest rate
|
Term of the deposit |
From 1 month up to 1 year. A shorter term may be chosen for deposits exceeding 35,000 EUR (or equivalent in a different currency). |
| Automatic extension of deposit term | Deposit term can be extended automatically. You can choose to either transfer the accrued interest to your current account prior to extension of the term or add it to your deposit. |
|
Interest rate calculation |
Interest rate is fixed for the whole term of deposit. In case of automatic extension of deposit term, rate specified by the bank in the Price list, effective on the date of extension of the term is applied. |
|
Disbursement of deposit and interest |
You will receive the amount of deposit and the accrued interest at the end of deposit period. |
|
Minimum amount and currency of deposit |
Starting from 100 EUR, 200 USD. |
|
Interest rate |
For deposits in EUR and USD according to the bank’s Price list. |
Find out more about other options for savings:
According to the law "On Personal Income Tax", all private individual income from the capital (including the interest income gained from the term deposit) is taxed. Thus, we wish to explain the process of tax collection.
According to the law “On Personal Income Tax”, the state applies a tax of 20% from the profit interest received from the term deposit. The tax is applied only to the profit received, not to the whole amount of the deposit.
The law states that tax on deposit interest shall be paid on the day when the income is received, respectively at the moment when interest income is disbursed (since 1 January 2010). The responsible body for collecting the tax is the one paying out the income. You may plan making or receipt of your deposit; SEB will automatically withhold tax (will pay it for you) during interest payment.
Deposit Guarantee Law of the Republic of Latvia stipulates guaranteed compensation to the amount of the deposit (but not exceeding 100,000 EUR) per depositor, if the deposit is not available. Additional compensation up to 200,000 EUR is possible for the following deposits of the private person within the period of three months from the date when the initial deposit was made:
- Income from transactions from the real estate owned by the person and intended for residence;
- Social benefits, compensations and deposits intended for other social purposes as determined by the regulatory enactments paid to the person;
- Compensation for criminal damage or wrongful conviction of the person according to the procedure stipulated by the regulatory enactments.
If the depositor has several guaranteed deposits, they are added up and considered as one guaranteed deposit.
The guaranteed compensation is paid only to those depositors whose claim has been recognised by the liquidator or administrator. Unavailability of deposit occurs upon judgement of the court regarding insolvency of the credit institution and initiation of bankruptcy proceedings. The guaranteed compensation is not paid for certain statutory customer deposits, such as deposits of financial institutions, persons associated with the credit institution, their relatives, etc.
Basic information about state guaranteed deposit protection
Deposit Guarantee Law
| In force from | In force to | |
|---|---|---|
| Term deposit agreement terms and conditions (LAT) |
13.02.2017
|
In force
|
Bank's interest rates per year for storing funds in Term Deposit
Term - 12 months
Minimum deposit amount 100 EUR, 200 USD
| EUR | USD | |||
|---|---|---|---|---|
| At the Bank's branch | In Internet bank | At the Bank's branch | In Internet bank | |
| Payment of interest at the end of the term | 0,00% | 0,00% | 0,00% | 0,00% |
Effective as of 15.09.2020
| Services | Fees |
|---|---|
|
Funds transfer from Current Account to Deposit Account, or cash deposit through branch office |
|
| In accordance of the General Price list section "Payments" or “Cash Transactions” | |
|
Commission for premature termination of the Term deposit agreement1 |
|
| With a 3-day prior written notice to SEB bank | 3% of the amount |
1 The commission is applied when the agreement is terminated before expiry, irrespective of whether the customer wants to receive the deposited funds in cash or as a transfer. If the agreement is terminated before expiry, the customer does not receive the accrued interest.