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Banking ServicesTime Deposit

Last updated:2019/08/02 Print

What are integrated time deposit accounts? What is their relationship with CDs? What is their purpose?

1.This company relies on depositors' ID card numbers to open integrated time deposit
   accounts. A newly-opened CD is automatically registered to a household; after registration
   to the household, the CD is handled in accordance with the integrated account's seal,
   password, and account reconciliation type settings.

2.After establishing an integrated time deposit accounts, a newly-opened CD does not
   require leaving a seal impression or presentation of two ID documents (two ID documents
   must be presented, however, when necessary to comply with anti-money laundering
   regulations) in the case of each transaction; if the depositor changes his or her name,
   or the depositor's seal has been lost or changed, to save waiting time, they do not need
   to be changed for each transaction.

Does an old CD require registration to primary time deposit account? What procedures are needed? Do I need to bring all my CDs?

This company does not currently require depositors with old CDs to perform registration to household; depositors may apply for this procedure on their own initiative.
After opening a primary time deposit account, if the depositor applies to register an old CD to primary account, the depositor should bring his or her old CD, original seal, and completed "registration to primary account application form" to the post office where the account was opened to perform this procedure. There is no need to bring all CDs; if the depositor has already applied for CD registration to primary account, the computer system can be used to perform management queries.

If a deposit constitutes my personal savings, can I request that the seal, password, and account reconciliation type are not the same as my primary account?

*To ensure that time deposits employ primary account conditions (seal, password, and
    account reconciliation type), unless there is a special reason (such as transfer), this
    company's current regulations do not permit the casual cancellation of CD registration
    to primary account procedures.

*We recommend that you change the primary account's reconciliation terms be changed
    to "do not perform reconciliation," or open an primary account at another post office,
    or open a new integrated savings account, which means that you can use another seal,
    password, and account reconciliation type.

How is the interest on CDs calculated? What happens in the case of late withdrawals?

1.CD interest calculations may be performed on either a fixed interest rate or variable
   interest rate, and the interest on installment savings is calculated solely using a variable
   interest rate. When using a variable interest rate, the interest calculations shall be adjusted
   whenever the post office's announced deposit variable interest rate is adjusted.

2.With regard to CD interest, interest on 1-, 3-, 6-, and 9-month CDs is calculated as
   simple monthly interest. In the case of CDs with terms of 1 year or longer, apart from
   installment interest, monthly compound interest calculations shall be performed
   (if a deposit has a designated maturity date, interest on deposits from 1 to less than
   3 months shall be calculated on the basis of the one-month interest rate, and so on).
   Interest for all whole-month periods shall be calculated according to months, regardless
   of the lengths of the months, and interest for periods of less than one month (including
   leap years) shall be uniformly be calculated on the basis of 365 days.

3.If installment savings interest cannot be deducted on the agreed-upon redeposit day
   because the balance is insufficient, interest shall be deducted starting on the 3rd day
   after the deadline (i.e., when withdrawal is performed at maturity, the late interest after
   the end of the deposit period shall be deducted after the computer system has calculated
   the amounts of principal and interest the depositor can receive; no interest shall be
   deducted during months in which the deposit is late for no more than 2 days).

4.When the interest on a CD is withdrawn late, daily simple interest shall be calculated based
   on the original deposit principal in accordance with the demand deposit (giro savings)
   interest rate; if the giro savings interest rate is adjusted during the late period, the interest
   shall be calculated in separate periods based on the adjusted announced interest rate.

How is the interest calculated on CDs used to secure loans?

When a CD used as security has a fixed interest rate, 1% is added to the regular CD interest rate; when the CD has a variable interest rate, 1% is added to the variable interest rate with the same term as the CD at the time of the loan, and the loan interest rate shall vary in accordance with changes in the interest rate during the loan period.