The Bank of Bahrain and Kuwait (BBK) has launched two new products—the Premier FD and the Pre-i FD. The Premier FD is a US-dollar denominated LIBOR-based deposit that provides a higher interest payout than the usual fixed deposit rate.
The LIBOR-based rate is adjusted every six months so BBK customers do not miss-out on the expected increase in interest rates. In addition, the Premier FD provides a steady flow of liquidity through the monthly or quarterly interest payments that could be either cashed or re-invested, according to a bank press release.
The BD value of both the principle and interest is guaranteed. Minimum deposit amount is $100,000 and maturity is set for one, two or three years. Should the depositor require liquidity, he / she will have access to cash through a credit extension secured against the fixed deposit at a favorable rate.
With maturities of six or 12 months, the Pre-i FD complements the Premier FD. The Pre-i FD, also a US-dollar denominated retail deposit, introduces the novel concept of paying the interest upfront. The Pre-i FD has the following features: it is a dollar-denominated fixed deposit scheme. Payment can be accepted in US Dollars or BD equivalent. The BD value of both the principle and interest is guaranteed. Minimum deposit amount is $50,000, maturity is set for six or 12 months. Interest is set at standard BBK fixed deposit rates, but the payment is made upfront. The interest can either be cashed out or reinvested at the same rate. — (menareport.com)
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