Deposit Products

• Increased saving interest rate by 0.5% over the prevailing

ordinary saving interest rate;
• Increased interest rate by additional 0.5% as a customer
pass a pre-set threshold in his/her account balance of Birr
Yebalewuletawoch 500 thousand;
(Senior Citizens) Sav- • 50% discount on the Bank’s service charge (commission) of
ing Account: Individuals local money transfer if amount is to be sent/deducted from
who attained age of 50
Yebalewuletawoch accounts maintained in the Bank;
years;
• Charges for ATM transaction fee and safe deposit box rent
shall be discounted by 15% of the actual price;
• Priority treatment at counter without awaiting queues
 Deposit Products Cont’d

• An increased saving interest rate of 0.5% on the minimum

rate shall be paid for the saving account;
• Shall get 20% discount on safe deposit box rent.
• ATM debit card shall be issued freely.
Adey (Women)
• 3% discount on purchases at different institutions and mer-
Saving Account:
chants that BoA has made an agreement with (e.g. Hospi-
Individual women whose tals, supermarkets, beauty salons, etc…)
age is above or equal to • An increased daily ATM cash withdrawal limit of ETB 15,000
18 years irrespective of
• Gift certificate of ETB 500 shall be provided as a gift at a
their monthly earnings;
time of birth giving if the woman saving account is main-
tained with a minimum balance of ETB 25,000;
• Access to priority banking service for depositors with
amount above 500 thousand.
 Deposit Products Cont’d

• Relatively Higher Interest Rate by adding 0.5% on top of the

prevailing minimum saving deposit rate;
• Total cost of debit card shall be covered by the Bank for stu-
Afla (Youth) dents with student ID, and Half cost for those without stu-
Saving Account: dent ID card;
All individuals whose age • 1% Purchase Discounts at agreed retail shops for purchases
is greater than or equal with debit cards;
to 18 and less than 29 • Other non-financial offerings like, giveaway materials in var-
years old; ious times depending on situations;
• It shall be converted to normal/ordinary saving account
when the account holder reaches the age of 29and;
 Deposit Products Cont’d

• It is interest bearing account which is compounded monthly;

• It can be opened individually, jointly and by corporate enti-
ties;
Ordinary Saving: • It can be opened with zero balance, however, the account
It bears interest and can should show at least amount Birr 25 within a month;
be maintained by physi- • It can be operated by cash withdrawal slip, debit card, mo-
cal or legal persons bile and internet banking; and
• A minimum amount of Birr 25 has to be maintained to qualify
for interest calculation
 Deposit Products Cont’d

• It is designed for saving money for higher education up to

undergraduate programs;
• It can be opened for oneself or for a minor by the parent(s)/
Education tutors of the minor;
Saving Account: • Provides 0.5 % higher interest rate than ordinary saving ac-
It is designed for saving count;
money for higher educa- • It grants scholarship fund for draw wining account holders
tion up to undergraduate who saves for at least one year and whose account balance
programs reaches birr 5000. The scholarship fund can be used as seed
money for initial capital to start a small-scale business in-
stead of pursuing higher education
 Deposit Products Cont’d

• Self-employed/employed teens between the ages of 14-17

years can open and operate this account by providing letter
of confirmation from the Zonal/Woreda administration and
school administration. The letter shall at least state the ap-
plicant’s name, age, photograph and source of income
Teen Youth
whether he/she generates their own income;
Saving Account:
• The parent(s) or the tutor of the teen youth can open the ac-
It can only be opened by
count for unemployed teen or teen without own source of
individuals in the ages of
income.
14-17;
• Can be opened with zero balance.
• Provides higher interest rate than ordinary saving account;
• Shall be converted to Afla saving account or ordinary saving
account when the account holder reaches to the age of 18.
 Deposit Products Cont’d

• Special Savings Accounts are interest-bearing accounts op-

erated by checks, drawn up to a frequency of five with-
drawals per month for eligibility of interest payment;
Special Saving Ac-
count: • To open this account, customers are required to complete an
application form; and
Interest-bearing ac-
counts operated by • The initial minimum deposit for opening of Special Savings

checks Accounts shall be Birr 500.00 (Five Hundred) while the min-
imum balance for interest accrual is Birr 100.00 (One Hun-
dred Birr)
 Deposit Products Cont’d

• It can also be operated by using card, mobile and internet

banking;
Ordinary Demand De- • It can be opened with a minimum balance of Birr 1,000 and
posits:
Birr 2,000 for individual and business customers respectively;
It is a non-interest-bear-
• Penalty is charged if the minimum account balance is below
ing bank account usually
Birr 500 and has no movement for more than six months;
operated by cheque;
• No restrictions on the number and amount of deposits and
withdrawals as long as the account have sufficient balance.
 Deposit Products Cont’d

• Member Pay-in
ECX Related Ac- • Used as payment guarantee to participate in the trading
counts: floor of ECX;
The accounts are opened • The member is a legal owner but shall empower ECX for
to facilitate commodity debit transaction; and
trading at ECX; & Ac- • It can only be debited by the Deposit Mobilization Depart-
count opening and clo- ment as per the instruction of ECX.
sure process is carried • Member Pay-out
out by Deposit Mobiliza- • Used to receive payment from ECX trading; and
tion Department • The member/account holder has exclusive right on the ac-
count.
 Deposit Products Cont’d

• Client Pay-in
• It is an account maintained by members on behalf of their
clients; and
• It can only be debited by the Deposit Mobilization Depart-
ECX Related Accounts ment as per the instruction of the ECX.
Cont’d • Client pay-out
• An account maintained by members on behalf of their
client; and
• The member/account holder has exclusive right on the ac-
count.
 Deposit Products Cont’d

• The period of fixed deposit is greater than or equal to 6

months;
• If customer requests any withdrawal before the maturity date,
the withdrawn amount shall be entitled to the prevailing sav-
Fixed Time Deposit ing interest rate and any remaining amount shall be entitled to
Accounts: the fixed deposit interest rate;
It is opened for a particu- • Minimum initial deposit is Birr 100,000.00 or USD 5,000.00 or
lar fixed period (time) by its equivalent in EURO or Pound Sterling.
depositing particular • Branches shall fix interest as per the differentiated interest
amount of money; rate table provided by the bank based on the amount of de-
posit to be maintained; and
• District shall negotiate the applicable interest rate for deposit
amount of birr 15 million with the maximum ceiling amount
communicated by the bank.
 Deposit Products Cont’d

• Opened for BOA staff members and its category shall be

changed to non-staff category codes when the staff leaves the
Staff Accounts:
bank; and
Opened for BOA staff
• Staffs are not allowed to effect transaction of their own ac-
members
count on the system except in the payment channels such as
internet, mobile and card banking.
 Deposit Products Cont’

• Withdrawals is approved by the Branch Manager or Manager

Cash Indemnity Ac-
Operation for settling cash shortage reported by the account
count :
holding staff; and
For settling cash short-
• Payments may be effected to the account holding staff after
age reported by the ac-
one year of leaving cash related post for which she/he was en-
count holding staffs
titled to the cash indemnity.
 Deposit Products Cont’

Overdraft Account:
It is a demand deposit • Its approval follows the credit procedure and approved for a
account with feature that certain withdrawal limit for a maximum period of on year and
allows customers to can be renewed per the application of the customer prior to
withdraw money beyond one month to expiry.
their credit balance; • It can be withdrawn up to the approved limit.
 Deposit Products Cont’

Joint Accounts: • Joint accounts can be:

Joints accounts shall be
maintained in the name
of two or three individu-
als to jointly operate the
account.
• “And Account” : all the parties should be present at the
counter of the bank to give payment instruction and with-
draw money and
• “And/or Account”: individual account holders to withdraw
money and give payment instruction separately
 Deposit Products Cont’

• It is either saving or demand account opened by business

people following the name of customer/business with addi-
Earmarked Account tional description;
Accounts : • It is an account opened with further description indicating the
opened by business
purpose like “club account,” “business account,” “workshop
people following the
account,” “project account,” “main account,” “branch
name of customer/busi-
account,” etc.;
ness with additional de-
• The customer shall explicitly request the bank in written form
scription
to add the description;
• It can be earmarked using the registered trade name or the
business sector indicated on the trade license; and
 Deposit Products Cont’

• It is either a saving or demand account opened and

Accounts for Inter-
dicted Persons: operated by the tutor appointed by the court on be-
half of the interdicted person/s.
 Deposit Products Cont’

Iddir Saving Account:

• Apply minimum interest rate of 7.50% for amounts less than 1
- The account has saving account na-
ture, mln; and 8% for dep. amt exceeding Birr 1mln,
- May be opened either with the Id-
• Provide loan to the Iddir with 1% discount interest rate,
dir’s name or with officials of Iddir
with annotation specifying Iddir’s • Providing Abyssinia Bonus to Iddirs annually by calculating 0.5
name
- Each Iddir member shall open his/ % on annual average deposit;
her account • Yearly, the Bank shall provide Iddirs with branded items that
- The periodic contribution of mem-
bers shall be collected through stand- comprise umbrellas, registration book, Agenda and Iddir mem-
ing instruction ber’s ID to all Iddirs,
- The Bank shall give financial advice
• IddirsThe Bank shall offer the giveaways that branded in its
to each Iddir whenever possible
logo;
 Deposit Products Cont’
BoA - Iqqub Account:
- BoA classified Iqqubs in to three
types based on their size as Large,
Medium and Small to put the value
propositions in relation to their charac-
teristics.
- The Iqqub account shall have a spe-
cial saving deposit nature,
• Large Iqqub:
• The Bank may extend up to 2% discount on BoA’s Overdraft facility
lending interest rate to eligible equip organizers;
• Facilitating financial transaction of Iqqubs,
• Providing Iqqub members ID and registration books as give away;
• Apply minimum interest rate of 7% for amounts less than 1 mln; and
7.5% for dep. amt exceeding Birr 1mln,
• On sight cash collection when it deems necessary,
• Availing space for the Iqqubs within BOA branches,
• Medium Iqqub;
• Apply interest rate of 7.3% for amounts less than 100 thd; and 7.5% for
dep. amt exceeding or equal to Birr 100 thd.
• The Bank shall facilitate transaction of Iqqubs with standing instruction,
• Small Iqqub;
• Earn higher interest rate i.e. 0.3% compared with the ordinary savings
• Delivery of Muday – Abyssinia free of charge
Deposit Products Cont’

• Increased interest rate by additional 0.5 % as the minor’ s deposit ac-

count passes a balance of Birr 100,000.00;
• A deposit of birr 25 as an incentive for newly opened minor accounts; if
a minimum of birr 100 is deposited within one month of the account
opening;
• Provides 25 local scholarships award for 25 minor account holders each
year up to the amount of Birr 25,000 each;
• The bank shall pay an incentive of birr 500 for accounts opened at early
childhood age (from birth to 6 months), if… and …
• Set up regular transfers to the minor account using standing Instruc-
tions free of charge;
• Free monthly electronic or printed statements;
• Provide customized Muday for the minor account holders;
Deposit Products Cont’

• For Account Holders:

• Account holders can place standing instruction from/to any of their ac-
count free of any associated cost;
• Account holders can change and stop standing instruction any time free
of charge;
• The account holder can make fund transfer and local money transfer
from Tithe account free of charges once every month;
• The account statement can be forwarded to their e-mail or hard copy
which ever channel they preferred once every month;once every month;
• For Churches/Recipients of the Tithe:
• Churches/recipients of the Tithe can request their own account state-
ment free of charges once every month;
• Churches/recipients account statement can be forwarded to their e-mail
or hard copy which ever channel they preferred but submitted by them
(once per month);
• On premises deposit (cash collection) service will be delivered to
churches/recipients as per their preferred date; and
• As a giveaway material, customized big “Muday Box” may be given to
assist cash Tithe collection, as the case may be.
Deposit Products Cont’

• The transfer of money from saving account to saving plus account and
vice versa should be done automatically without any human interven-
tion;
• Interest shall pay on monthly average-maintained saving plus account
as per the following differentiated rate;
• 100,000-1,000,000 7.2%
• 1,000,001-5,000,000 7.5%
• 5,000,001-10,000,000.00 8.0%
• 10,000,001-15,000,000.00 8.2%
• Above 15,000,000.00 8.5 %
• The remaining minimum balance, during the month, maintained in the
linked saving account shall earn the prevailing interest rate for ordinary
saving account.
 Deposit Products Cont’

• Salary Saving Account

Upcoming New Saving De-
posit Products • Start Up saving Account (All with their own features
and Value propositions)
 Foreign Deposit Accounts
NRT FCY Accounts:
a type of FCY account main-
tained in hard currency and can
be used locally or transferred
abroad in FCY without the ne-
cessity of obtaining foreign ex-
change permit.
• The source of fund is overseas and in foreign currency;
• Can be maintained in hard currency or in Birr;
• Persons residing abroad can open such accounts in person or
by mail in their names through Ethiopian Embassies;
• A foreign currency shall be credited to the account through;
• Direct crediting of the account from foreign sources via the
banking system;
• Foreign currency cash note; (a signed and sealed foreign-
currency-declaration form from the Ethiopian Customs Au-
thority for foreign currency notes above 3,000 USD); and
Cheque deposits that originate from abroad.
 Foreign Deposit Accounts cont’d

NRT Birr Accounts • A type of FCY account maintained in Birr and can be
(Non-Resident Transferable Birr used locally or transferred abroad in FCY without the
Accounts) necessity of obtaining foreign exchange permit.
 Foreign Deposit Accounts Cont’d

NRNT Birr Accounts • A type of fcy account maintained in Birr and can be used for
(Non-Resident Non-Transfer- payment of local expenses. Its convertibility into fcy needs
able Birr Accounts) approval(not automatic)
 Foreign Deposit Accounts Cont’d

• There are two retention accounts:

• Foreign exchange retention account A
Foreign Exchange Retention:
• The account shall be used to deposit 30% of the earned fcy
It is an account opened for ex-
• The fcy deposited to the account shall be used to settle ac-
porters or for regular recipients
count holder obligation in fcy or converted to local currency
of inward remittances to retain a
when requested by the account holder.
percentage of the earnings as
• Foreign exchange retention account B
per the pertinent NBE direc-
• The account shall be used to deposit 70% of the earned
tives.
fcy up to 28 days, any balance shall automatically be
converted in the next working day into local currency.
 Foreign Deposit Accounts Cont’d
Diaspora Accounts:
These account categories are
opened for all Ethiopians living
abroad for more than a year or
all Ethiopian origin having for-
eign citizenship.
There are three types of ac-
counts:
• 1. Non- Repatriate Birr Account (Saving Account)- is an
fcy account opened by diasporas that gives them privilege of
earning double interest rate as compared to normal saving
interest rate. Withdrawal from this account is allowed only in
Birr.
• Features
• This account may take the form of saving deposit that
can be used for local payments only;
• Fcy is the only source of fund for the account;
• It cannot be opened by the power of attorney. However,
individuals with power of attorney can operate the ac-
count;
• Interest rate shall be double of the minimum saving de-
posit rate set by the NBE, currently it is 14%; and
• Money can neither be transferred from this account
abroad nor from the local currency to any foreign cur-
rency.
 Foreign Deposit Accounts Cont’d

• 2. Foreign Currency Current Accounts- is an fcy demand

account opened by Diaspora where withdrawal from this ac-
count is allowed either in Birr or hard currency.
• Features
• Can’t be opened by power of attorney. However, individ-
uals with power of attorney can operate the account;
• Fcy is the only source of fund for the account;
Diaspora Accounts Cont… • Withdrawals can be made at any time by issuing a
cheque;
• It can be opened with an initial deposit of USD 100 or
its equivalent in any of the eligible currencies;
• The maximum amount to be deposited shall not ex-
ceed USD 50,000 or its equivalent in any of the eligi-
ble currencies
• Interest shall not be paid to this account.
 Foreign Deposit Accounts Cont’d

• 3. Foreign Currency Fixed-Time Deposits- is a contract

based account opened in fcy for those individuals/business
customers who want to earn higher interest rate for certain
period of time as per eligibility criteria.
• Features
Diaspora Accounts Cont… • It is an interest bearing account with agreed maturity date;
• Fcy is the only source of fund for the account;
• Can’t be opened by the power of attorney. However, individ-
uals with the power of attorney can operate the account;
• The minimum maturity period is three months;
• It is opened with an initial deposit of USD 5,000 or its equiva-
lent in any of the eligible currencies;
• Interest income on such accounts is tax-free.
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 ID Cards to open an account

•Woreda/Kebele ID cards;
•Farmers associations' ID cards;
•Employment and Pension ID cards;
•School, College and University ID cards;
•Driver's/Operator's licenses;
•Tax Identification ID cards;
•Passports;
•Work or residence permits;
•Foreign-nationals-of-Ethiopian-origin ID cards together with a valid passport;
and
Ethiopian Community Exchange ID cards.
 Contents of Acceptable ID cards

The bearer full name i.e. in case of Ethiopia Citizen Person's name, Father's
and Grandfather's name;

Photograph;

ID number;

Issue and expiry date; and Issuer name and issuer's stamp
 Payment Channels Cont’d

•Local Money Transfer: a wiren transfer or credit transfer which is transferring

money from one person or institution to another.
•Foreign Money Transfer: shall be made for Education, correspondence fee,
seminar, training, symposium, workshop, conference,
membership fee, medical fee and other similar purposes in
line with the pertinent directive of the NBE and the
direction of the bank.
 Digital Banking

Mobile Bank- BoA Online:

ing: It is an electronic
the provision and service provided
providing of bank-
by the Bank to
related financial
allow customer
1. Online Bank- services with the
to perform trans-
ing help of mobile
actions, pay-
telecommunica-
tion devices
ments etc. over
* It can be on the Internet -
USSD and web through a bank’s
based (App) secure website.
 Digital Banking Cont’d
BOA Proprietary (Private-Level) Cards
• Co-Branded Pre-Paid Gift Cards:produced on contractual agreement between
an issuer and an organization to join forces for mutual benefits
• General Purpose Pre-Paid Gift Cards (BOA Wallet and others):These can
be used in place of cash, cheques or gift certificates
2. Card Banking:

Types of Cards Issued by BOA

 Digital Banking Cont’d

Do- •Habesha
•Habesha
Classic Debit Cards Features
YEBALEWULETAWOCH Classic Debit

mestic
Cards
•Habesha Afla Classic Debit Cards Features
•Habesha Adey Classic Women Debit Cards Fea-
tures

Cards
•Habesha Gold Debit Cards
 Digital Banking Cont’d

 Point of Sale (POS): an electronic payment channel facilitates purchase of goods and
using payment card.
 Automated Teller Machine (ATM):ATM is a cash dispensing machine, accept cash and
checks as deposits, enables account access, allows fund transfers, bill payments, coupon and
ticket selling, and mobile phone air time recharging.
 BOA Agent Banking: BOA‘s mobile money service mainly designed to create access to the
un-banked and un-served population.
 Interactive Teller Machine (ITM): the customer can perform almost any transaction they
would make with a teller and has the option to connect with a remote teller, who is able to
provide all the services of a traditional teller. The ITM teller interacts with the bank customer
in real time.
 Services

•Muday Bank Service :It is offered by the bank to accumulate and save money in
designated box and deposited in to the respective customer account;
•Safe Deposit Box: a type of service which is given to customers to store valuable
items.
•Cash Pick Up: a cash collection service provided for premium customers from their
premises
•Cashier Implant :a service provided for premium customers by assigning employee/s
of the bank on their premises
 International Banking Products
• Forex Services
• Cash purchase and Sale

• MTOs
• WU, Transfast, Moneygram, Dehabshiil, Ria, KAAH,
Xpress money, and WorldRemit

• Swift
• ABYSETAA

• Import
• LC, CAD, TT…

• Export
• Transitory account, Retention accounts A & B
 Credit Products
1. Credit Business Products:
1.1. Corporate and/or Retail loans:
 Regular Overdraft Facility: a form of credit facility by which a customer may be
allowed to draw beyond the deposits of her/his/its current accounts for the sole purpose of day to
day operational needs of a viable and ongoing business.
 Overdrawal on a regular OD or C/A: A temporary facility that grants a customer the right to
withdraw a specified amount of fund over and above the overdraft limit or current account in
order to meet unexpected seasonal shortage of cash.
 Merchandise Loan Facility: a short term credit facility provided by the bank against which the
merchandise or documentary evidence( railway receipt, warehouse receipt and airway bill) is held
as a pledge or collateral for the loan.
 Credit Products Cont’d
 Warehouse Receipt Financing: a financing mechanism in which the bank provides loans/ad-
vances for members or clients of ECX(Ethiopian Commodity exchange) by pledging warehouse re-
ceipts issued in their names by the ECX.

 Import Letter of Credit Facility: a credit product that the bank extends to the applicants who
are engaged in import business or other applicants who import for various purposes on payment of
certain percentage of the value of the document while opening a letter of credit.

 Back-to-Back Letter of Credit: When one letter of credit is used to secure the issuance of
another letter of credit, the parties involved are said to be dealing to back-to-back letter of credit.
In other words, it is a credit issued for the account of a buyer of goods(Importer) already holding a
letter of credit from the foreign buyer(Export LC).

 Import LC Settlement loan: a loan extended to importers or business persons to relieve their
working-capital shortage and settle the L/C opened but has remained outstanding because of her or
his temporary shortage of cash for the settlement thereof.
 Credit Products Cont’d
 Pre-shipment Export Credit Facility:
o For trading export Business – a loan extended for purchase of raw materials, processing
and converting them into finished goods, warehousing, packing and transporting the goods
until the time of shipment. The financing shall be availed against valid sales/export contract or
bona-fide purchase order from a foreign buyer.
o Without sales contract –The bank may advance a portion of the pre-shipment export credit
facility with out submission of a valid sales contract/a bona-fide purchase order with necessary
conditions.
o For Manufacturer Exporters – is a facility extended to those manufacturers engaged in
Textile and Aparels, Leather and Leather products, Agro processing etc. exclusively or partly
for export market.
o Contract Based Channel Financing – A facility for enterprises/ Companies operating in
industry parks which are engaged in the manufacturing of goods to be supplied to manufac-
turers in the value chain for final export.
o For Livestock Export Financing – for customers engaged in export of livestock, in the form
of pre-shipment export credit facility for the purpose of purchasing, quarantine, and trans-
portation of live animals for export purposes.
 Credit Products Cont’d
 Financing for Co-operatives/ Unions/ Federations against Forward Delivery Contract
with International Organizations – It is necessitated to curb working capital problem of
Unions/Co-operatives/Federations for executing their sales contract with international organizations.

 Advance on CAD facility: a facility advanced to reputable Corporate/Retail customers of the BoA,
who are involved in the import business to finance their short-term financial needs in their import
activities upon presentation of relevant import documents and others for credit processing.

 Letter of Guarantee Facility: Is a written promise/irrevocable obligation by the bank to compen-

sate (pay a sum of money) to the beneficiary (local of foreign) in the event that the obligator fails
to honor his/her/its obligations in accordance with the terms and conditions if the agreement or
contract.

 Tenured Working capital loans: a loan to be repaid in a lump sum on maturity, or in periodic
installments (that is, monthly, quarterly, semi-annually, annually, or any other mode of repayment
agreed with the borrower), depending on the nature of the business and its cash flow.
 Credit Products Cont’d
2. Consumer and Mortgage Loans
A. Non Staff Loans
 Mortgage loans
 Vehicle loans
 Education loans
 Personal consumption loans
 Other institutions Staff loans
B. Staff loans
 Emergency Staff Loan
 Staff Mortgage loan
 Staff Vehicle loan
 Staff education loan
 Staff personal consumption loan
Thank You