Corporate Banking

RMB Agreement Deposit

1. Product Definition

The corporate agreement deposit refers to a type of deposit where, based on the “Agreement Deposit Contract” signed with the Bank, the depositor opens an agreement deposit account in the settlement account and sets the limit of amount to be retained in the settlement account. Then, the exceeding amount in the Bank settlement account will be transferred into the agreement account and accrue interest at the rate for agreement deposit separately. 

2. Product Features

The agreement deposit boasts a higher yield compared with the current deposit, but the liquidity basically the same as that of current deposit account. 

The threshold amount of agreement deposit is not less than RMB 10,000. 

The funds in the agreement deposit enjoy two interest rates, namely the deposit within the basic limit will accrue interest at the rate of current deposit and the exceeding amount will accrue interest at the rate of agreement deposit. The interest of agreement deposit account will be calculated according to the interest rate of agreement deposit announced by the People’s Bank of China on the 20th day at the end of each quarter. 

3. Target Customers

All eligible enterprises, public institutions, administrative organs, military forces, social organizations, and self-employed entities that have opened basic or general RMB deposit accounts with the Bank can apply to local branch offices of the Bank for the agreement deposit. To apply for the agreement deposit, the customer must sign the “Contract on Corporate RMB Agreement Deposit” with the Bank and jointly decide the basic deposit limit. 

4. Application Procedures

The part of deposit balance in the settlement account opened by the customer above the retained limit of agreement deposit will be rolled into the agreement deposit aggregate and accrue interest at the rate of agreement deposit on a quarterly basis. 

The term of Agreement Deposit Contract is one year, and will be extended automatically for another year upon maturity if no party proposes to terminate or modify the Contract.