Balti Investeeringute Grupi Pank AS (BIG) began offering fixed-term deposits in euros today as part of its strategy of providing the highest return of any bank in Estonia.
The interest rate on BIG's euro deposits can be up to 7.7 percent depending on the amount deposited, the length of the deposit period and the method of interest payment. The minimum sum for a euro deposit is 10,000 euros with a term of between six months and three years. BIG will agree on the interest rate for deposit sums of more than one million kroons.
The interest rates on euro deposits with a fixed term of one year will remain lower than those for deposits in Estonian kroons. The annual return on deposits of up to 30,000 euros is 7.5 percent, while for deposits of more than 30,000 euros the interest rate is 7.7 percent.
Kaido Saar, a member of the management board of BIG, says that the decision to offer deposits in euros was the result of interest from clients in such a product. "Our experience is that with returns being higher at the moment, there is a lot of interest in fixed-term deposits. BIG's euro deposits are designed primarily for those who are looking to invest larger sums, for whom the interest we are offering will mean significantly greater returns and who for whatever the reason have to keep their assets in euros. With the stock markets seesawing the way they are, fixed-term deposits are the best option for people who take a more conservative approach to their finances."
BIG is continuing to offer 8.0 percent interest on one-year deposits in Estonian kroons, which is two to three percentage points higher than the rate offered by other banks in the country. Returns on fixed-term deposits are exempt from income tax. The terms and conditions of BIG deposits are set out in more detail on the bank's website at www.hoius.big.ee.
The Baltic Investment Group Bank is one of the largest banks in the Baltic States specialising in lending to private clients and is the leader in the small loans sector of the Estonian market. BIG has set itself the goal of offering the most productive fixed-term deposits on the Estonian market. The minimum deposit term is six months while the maximum is three years.
As of the end of 2007, BIG employed a total of 494 people in 38 branches throughout the Baltic States. Moody's Investor Service, the international rating agency, has awarded BIG a credit rating of B1, with prospects for the rating remaining stable. BIG's bonds are listed on the Tallinn and Stockholm Stock Exchanges.
For further information please contact:
Kaido Saar
Member of the Management Board
Telephone: +372 630 9927
E-mail: kaido.saar@big.ee
