Making sense of banking terms

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Staff Reporter

Windhoek-Bank Windhoek says it often receives questions from the public on what the different savings and investing products mean and how they works. Two of Bank Windhoek’s most popular investment products are Call Deposits and Notice Deposits.
The term Call Deposit refers to a specific type of interest bearing investment account, which allows a person to withdraw their money from the account, with a 24-hour written notice to the Bank.

In banking terminology, the term Notice Deposit refers to a flexible investment product, or a savings account held with a financial institution, that permits withdrawals without penalty only after advance notification is given.

The benefits and uses of these two investment accounts also vary.

“Notice Deposits become available within a predetermined notice period. At Bank Windhoek this period ranges between 7, 14, 21, 32, 60 or 88 days. Funds on Notice Deposits are available after the specified notice period that was agreed with the bank.
A minimum opening balance of N$500 is required. The notice period includes Saturdays, Sundays and public holidays.

A customer is not restricted to a maximum investment amount or number of accounts. Multiple deposits are allowed on this account,” said Bokkie Cloete Bank Windhoek, manager of business development (traditional banking channels).

“Further, interest is calculated on the daily balance and capitalized, or transferred monthly or capitalised on maturity, which interest rate is market related. Guarantees may be issued against a Notice Deposit and it can also be used as collateral.”

Call Deposits, as stated previously, are available on demand in writing by the customer, within 24 hours. The customer is not restricted to a maximum investment amount. Multiple deposits are allowed on this account and interest is calculated on the daily balance and capitalized, or transferred monthly.

Similarly to Notice Deposits, Guarantees might be issued against Call Deposits and it can be used as collateral. “Of course, for those who wish to invest in a longer period, there is also our Fixed Deposit product. Bank Windhoek’s Fixed Deposit is an excellent choice if you want to invest your money at a fixed rate for a fixed period of time, varying from four months to 5 years (60 months), thus earning you returns at an agreed interest rate.

“A minimum opening balance of N$500 is required and clients above 55 years of age qualify for higher interest rates,” Cloete said. “No matter what your choice of investment, the best thing is that you are saving for future. This will not only benefit your future self, but also your family and loved ones,” he concluded.

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