2023-02-01 - 05-10-39........ Awash Bank Products

Nurturing like The River
Bank Products
By: Biniyam Kefena

November 2021
2
Saturday, September 30, 2023
Bank Products
Saturday, Se 3
ptember 30,
2023
TYPE OF ACCOUNTS
Brainstorm all types of accounts &

Presentation

Types Of Account
 Saving account
 Demand deposit account
 Fixed time deposit account
 Special Saving account
 Earmarked account
 Overdraft account
5

Types Of Account Cont’d
 ECX related account
 Foreign Currency Account
 Special Saving Deposit Account

- Smart Children - Student Solution
- Salary Payment Solution - Provident Fund Solution
- Investment Solution - Cheque Payment Solution 6
- Lucy Women - Elders Account Saturday, September 30, 2023

Definition & Features - Savings Account
 Is an interest bearing account

 Operated through with / without passbook.
 The minimum balance to open a savings account
should be Birr 50.00.
 However, S/A may be opened and maintained
with zero balance for one month.
 Savings account can be opened individually, 7
“and/or” and “and” Saturday, September 30, 2023

Definition & Features –
Demand Deposit Account:
 DDA (current or checking account) is a non-interest

bearing.
 operated through the usage of cheque
 It is opened by literate customers only.
 The minimum balance to open a Current account should
be Birr 500.00.
8

Time Deposit Account
 A deposit for a certain period of

time without movement for more
than the prevailing saving interest
rate.
 The minimum period of accepting
FTD shall be 3 months.
 The minimum balance to open the 9
account is Birr 100,000. Saturday, September 30, 2023

Time Deposit Account
 The rates of interest depends on the amount of money and
the duration of the account.

 Negotiation for Interest rate on fixed deposits is granted to
the management of the bank.

 Withdrawal before maturity period, shall loss the contract
interest rate.
 No interest will accrue after expiry of the certificate unless 10
replaced by a new one. Saturday, September 30, 2023

Special Saving Account (SSA)
 It is an interest bearing account

 Operated through the usage of cheque.
 The minimum initial deposit for SSA shall be Birr 1,000.00
 Interest shall be calculated manually.
 If the customer withdraw cash more than three times in
a month, interest will not be calculated for that
particular month.
11

Lucy Women
- it is a basic saving account that allows women to earn better interest.

Manner of Operation
 Is opened only to individual woman who is at least 18 years old or
companies /associations with at least 51% ownership by women.
 Initial deposit is birr 50 ( Fifty only).
Incentive
 interest rate is the prevailing saving interest rate plus 0.5% ( 7.5%)
 Debit Card, Free of Charge Saturday, Se 12
ptember 30,
2023
 Eligible for 50% lower price charge and fees on local money transfer.
Elders Account
 It is a basic saving account that allows elders to earn better

interest while building their saving.
Manner of Operation
 Is available only to elders ( people who are 55 years old or
elder .
 Minimum initial deposit is Birr 50 (Fifty only).
Incentive
 Interest rate is the prevailing saving interest rate plus a
Saturday, Se
ptember 30,
2023
13
IFB
IFB Services:-
Wadiah saving Deposit Account
Wadiah Current/ Demand Deposit Account
Mudarabah Savings Account
Mudarabah Fixed Time Deposit Account
Musharakah
Murabaha
Salam (Bay’As-Salam)
Istina
Ijarah(Leasing)
Awash International Bank S.C 14
etc
EARMARKED Account
 Earmarked accounts are accounts opened with other

descriptions after the name or names of the account holder
or holders such as ‘club account’,’ business account’,’
workshop account’,’ private account’, ’official account’, etc.
 Such accounts should be kept in the name or names of the

individual/s concerned not in impersonal names or in the
name of other persons, as they are personal accounts opened
15
for special funds or special purposes.

Special Deposit Accounts:
16
Definition & Features – Special Deposit Accounts:
Smart Children’s Account
 For children under 18 years of age.

 Birth certificate is required.
 Minimum initial deposit is Birr 50 (Fifty only).
 Save at least for a year to be eligible for
withdrawal.
 The remaining minimum balance in the account shall
always be Birr 1,000 (including the Birr 150 bonus, 17
if any) to get the incentives.

Definition & Features – Special Deposit
Accounts:
Smart Children’s Account Con’t
 Interest Rate (based on duration of deposit):
 First month to the tenth yr 0.25%+ prevailing saving rate.
 11 to 15 yrs 0.5%+ prevailing saving rate.
 Above 15 yrs 0.75% + prevailing saving rate.
Gifts:
Deposit Gift of Birr 150.00 from birth to age ten. This shall be
kept until the child reaches the age of 15 years.
Educational gifts - books and supporting kits, at key stages (per

18
each five year of the child - at 5, 10 and 15 yrs).
Operation
The account shall be opened by the full name
of the child followed by the word “Tutor”
under quotation and finally full name of the
parent (s)/tutor (s).
Joint account opening procedures with a 19
minor party shall apply. Saturday, September 30, 2023

 For security reasons, the parent/tutor shall exist in

FBE as an associate or full party and the relationship
shall be maintained.
 The account holder can withdraw once per year up to
25% of the account balance (excluding the Birr 150
bonus, if any).
 The account shall be transacted through a pass book 20
and debit card shall not be allowed. Saturday, September 30, 2023
Student Solution Account
 Available for tertiary level undergraduate regular

students in universities and colleges.
 In addition, the customer shall present a valid

universities and colleges student identification card.
 The minimum amount required to open this account

(initial deposit) is Birr 25.00 (Twenty five only).
21

Incentives:
ATM card issued free of subscription (card) fee.
A postgraduate educational loan facility of 200%
of the saved amount but limited to a maximum
of Birr 150,000.00 if he/she saves for at least
two years after graduation.
22

Operation:
The account is operated via passbook/without

passbook.
Present a valid student ID at time of

withdrawal as long as he/she is a student.
23

Salary Solution Account
 The employer shall have a savings or current account

 Employees can open this account without initial
deposit
 In order to benefit, the employer shall have at least 3
employees and above.
 ATM card free of subscription (card) fee.
 The account shall be operated via passbook/without 24
passbook. Saturday, September 30, 2023

Cheque Payment Solution Account
 The account holder shall have a minimum of Birr

1,000,000 (One million Birr) in the savings account
at all times.
 If the balance in the savings/CPSS account falls
below the required minimum amount, i.e., Birr
1,000,000 while paying the value of the Cheque, a
25
penalty of Birr 100 shall be levied once in a month.

Cheque Payment Solution Account
Incentives
 The current account portion shall pay no
interest
 The savings account portion shall get a
prevailing interest rate plus a bonus of
0.25%.
 To be eligible for this interest rate, the
minimum balance in the account shall be Birr 26
1,000,000. Saturday, September 30, 2023

Cheque Payment Solution Account Cont’t
 Protect the customer form dishonoring check presented for

payment.
Operation
 Under CPSS, savings/CPSS account of same customer shall be
linked to his/her/its current account to be used as a source
of fund for cheque payment.
 After linking the two accounts, a flat charge of Birr 50 shall
27
be collected immediately. The unlinking charge is Birr 200.

Investment Solution Account
 Designed for individuals or organizations with

regular incomes to save a fixed amount of money
every month.
28

The minimum initial deposit and monthly

installment amount shall be Birr 1,000 for
personal customers and Birr 3,000 for
enterprises.
From the pre agreed amount, the customer shall
save 40% within agreed deposit period which
ranges from minimum of one year to a maximum of 29

centive Interest rate

INTEREST DURATION
Normal Saving interest (7%) + 0.5%

0 – 3yrs

4yrs – 6yrs
Normal Saving interest (7%) + 1%

7yrs – 8yrs

9yrs – 10yrs
Saturday, September 30, 2023 30

Operation
The account is operated through a passbook.
The customer shall save at least for a year to be
eligible for the minimum interest rate for this
account.
The bank will give the 60 % at maturity as a term
loan.
31

Provident Fund Solution Account
 The account benefits different private

organizations and their employees.
 The account can be opened with zero
balance in the name of individual
employee.
 The Bank may provide account
statement monthly free of charge. 32
Incentives
savings interest rate plus 0.5%
The Bank may grant a term loan facility to

account holders, up to a maximum amount equal
to the deposited Provident Fund amount, for the
purchase of consumer durable goods: Residential
33
building, Automobile or any other fixed asset Saturday, September 30, 2023
Operation
 Passbook shall not be issued for individual employee.
 The employer/organization shall be the guardian
of the account even if the account will be opened in
the name of the employee.
34

Awash Muday Bank &
Toy Money Box Service
Awash Muday Bank ;
 Refers to a basic saving account that allows petty

traders to put small amount of money without going
to the bank .
Manner of Operation
 Min. Deposit to open the account is 25 birr
 Muday box is required
 The Customer has deposit balance equal to 50% of the recent
cost of the box .And block 50% of cost of recent box.
Awash Muday Bank & Toy Money Box
Service
Toy Money Box

 Used to put coins and paper money on it
 It allows parents/tutors /children and others to
put small amount of money aside and save
without going to a bank.
Manner of Operation
 50% of the recent cost of box is blocked on the
smart children account.
 Deposit at least once in a month.
 If the customer fails to deposit for 3
consecutives months – notify
Saturday, Se 36
 If still no deposit is made in the other 3 months –

ptember 30,
2023
Foreign Currency Accounts
Types of FCY Account
Non Resident Transferable Foreign Currency accounts
 Non Resident Transferable Birr accounts
Non Resident Non Transferable Birr accounts
 Diaspora Account 37

Who can open FCY account?

 Embassies ,Diplomat
 Diplomatic mission staffs (with the exception of Ethiopian
nationals)
 members of International Community
 international organizations and their organs
 Foreign Investors, NGO, Non resident Ethiopian & Foreign 38
Nationals of Ethiopian Origin Saturday, September 30, 2023

Non-resident foreign currency account is a non-

interest bearing account denominated in foreign
currency.
Non-Resident Transferable and Non-Resident
Non-Transferable birr accounts are also non-
interest bearing accounts but they are
39
denominated in Birr.
 The source of funds for NR foreign currency accounts

and NR transferable Birr accounts shall be from abroad
or shall only be from payments from other NR accounts;
 Non-resident foreign currency account, N/R

transferable Birr account shall be opened in the name
of Diplomatic missions, international institutions and
40
their foreign employees.

 After obtaining prior approval of the NBE upon

fulfilling the following requirements by NBE directives:
 Letter from the embassy confirming the source of
income of the applicant
 Resident ID card
 The maintenance of both NR foreign currency account
and NR transferable Birr account at the same time is 41
forbidden; Saturday, September 30, 2023

NR foreign currency and NR transferable Birr accounts shall only be used

for the following purposes as prescribed by NBE directives
Payments to residents of Ethiopia in Birr,
Drawings in Birr-notes and coins,
Payment to other NR accounts,
Bank charges, if any, levied by authorized bank,
Cheques drawn in favour of any person resident outside 42
Ethiopia. Saturday, September 30, 2023

According to NBE directives No. FXD/11/1998,

eligible exporters of goods and services and
recipients of inward remittances may open two
types of foreign exchange retention accounts,
namely:
 Foreign Exchange Retention Account “A”
43
 Foreign Exchange Retention Account “B”

 The balance held in retention account “A” may be kept for an indefinite
period of time and shall be sold fully or partly at a freely negotiable
exchange rate at any time in the inter-bank foreign exchange market.
 The balance held in retention account “B” shall only be kept up to 28

days and shall also be sold fully or partly at a freely negotiable rate
within the period of 28 days in the inter-bank foreign exchange market.
 If not sold, the balance shall be automatically converted into local currency
the next working day.
44

 All Ethiopian nationals living and working abroad for more than one
year or business entities owned by non-resident Ethiopians and
located outside Ethiopian territory for more than one year may open
the following foreign currency accounts:

 Fixed time deposit account
 Current account
 Non-repatriable Birr account (which may take the form of saving
45
deposit, that can be used for local payments only.)

1. Fixed time deposit account

 It is an interest bearing account with agreed maturity
date.
 The minimum maturity period is three months.
 It is opened with an initial deposit of US Dollar 5,000 or
its equivalent in any of the above stated currencies.
 Interest on such accounts shall be payable only if they are 46
maintained at least for the minimum period. Saturday, September 30, 2023
2. Current account
 It is operated by cheque book.
It can be opened with an initial deposit of US

Dollar 100 or its equivalent.
 Interest shall not be paid to a non-resident foreign

currency current account. 47

3. Non-repatriable Birr account

 Interest rate on such accounts shall be double of the
minimum saving deposit rate set by the National Bank of
Ethiopia.
 Currently (14%) 2x Saving rate
 Money can neither be transferred from this account
abroad nor from the local currency to any foreign
48
currency. Saturday, September 30, 2023

Overdraft Facility (OD)
 An over draft account is a form of

credit facility by which a customer
is able to draw an amount up to the
approved limit of the credit
facility.
 The mode of operation is like a
49
current account.
Ethiopian Commodity Exchange (ECX)
Dr. Eleni Gabre-Madhin, the Woman

who Successfully Launched Ethiopian
Commodity Exchange (ECX) and Changed
Many Lives Saturday, Se
ptember 30,
2023
50
 The (ECX) is a commodities exchange established

April 2008 in Ethiopia.
 The goal of the ECX is to provide a marketplace
where buyers and sellers can come together to trade
and be assured of quality, quantity, and payment.
 Which protect the rights and benefits of sellers,
buyers, intermediaries, and the general public. 51

Member Pay-in:
 serve as payment guarantee to the buyer.
 Members can only deposits in this account.
Member pay-out:
 This account is used to receive payment from the trading.
 The member account holder has an exclusive right on the
account.(can withdraw and deposit funds) 52

Client pay-in:
 an account maintained by members in behalf of their
client.
 Similar
to member pay in account it serves as depository
account,
 debit entries should be instructed by ECX.
Client pay-out:
 An account maintained by members in behalf of their
client.
 Like member pay out account.
 The account ownership rests with the member account
holder. 53

Any Question ?
Saturday,
54 September 30, 2023
Any Question ?
Saturday,
55 September 30, 2023

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Nurturing like The River

By: Biniyam Kefena

Brainstorm all types of accounts &

Saturday, September 30, 2023

Saturday, September 30, 2023

 ECX related account

 Foreign Currency Account

 Special Saving Deposit Account

- Salary Payment Solution - Provident Fund Solution

- Investment Solution - Cheque Payment Solution 6

- Lucy Women - Elders Account Saturday, September 30, 2023

 Is an interest bearing account

“and/or” and “and” Saturday, September 30, 2023

 DDA (current or checking account) is a non-interest

Saturday, September 30, 2023

 A deposit for a certain period of

account is Birr 100,000. Saturday, September 30, 2023

 The rates of interest depends on the amount of money and

the duration of the account.

the management of the bank.

replaced by a new one. Saturday, September 30, 2023

 It is an interest bearing account

Saturday, September 30, 2023

- it is a basic saving account that allows women to earn better interest.

 It is a basic saving account that allows elders to earn better

 Earmarked accounts are accounts opened with other

 Such accounts should be kept in the name or names of the

for special funds or special purposes.

 For children under 18 years of age.

if any) to get the incentives.

 Interest Rate (based on duration of deposit):

 First month to the tenth yr 0.25%+ prevailing saving rate.

 11 to 15 yrs 0.5%+ prevailing saving rate.

 Above 15 yrs 0.75% + prevailing saving rate.

kept until the child reaches the age of 15 years.

Educational gifts - books and supporting kits, at key stages (per

minor party shall apply. Saturday, September 30, 2023

 For security reasons, the parent/tutor shall exist in

 Available for tertiary level undergraduate regular

 In addition, the customer shall present a valid

 The minimum amount required to open this account

Saturday, September 30, 2023

Saturday, September 30, 2023

The account is operated via passbook/without

Present a valid student ID at time of

Saturday, September 30, 2023

 The employer shall have a savings or current account

passbook. Saturday, September 30, 2023

 The account holder shall have a minimum of Birr

penalty of Birr 100 shall be levied once in a month.

1,000,000. Saturday, September 30, 2023

 Protect the customer form dishonoring check presented for

be collected immediately. The unlinking charge is Birr 200.

 Designed for individuals or organizations with

Saturday, September 30, 2023

The minimum initial deposit and monthly

Saturday, September 30, 2023

centive Interest rate

Normal Saving interest (7%) + 0.5%

Normal Saving interest (7%) + 0.75%

Normal Saving interest (7%) + 1%

Normal Saving interest (7%) + 1.25%