Premium Term Deposits

For those customers who are looking for higher income financial products, but who do not want to accept the full risk of investing into mutual funds, we offer our premium term deposits, which are linked to JTIV mutual funds.

JTIV mutual funds have been one of the fastest growing funds in Eastern Europe, since their launch in November 2004. In two years JTIV Equity Fund I has netted over 70% growth, JTIV Equity Fund II has netted over 113% growth. Since its launch in November 2005, JTIV Fund of Funds has netted over 7% growth.

Griffon Bank Limited offers a new premium term deposit, where principal and a fixed interest rate are guaranteed by the bank and a premium interest is indexed against the performance of one particular JTIV fund. Premium term deposits are available only to customers of Griffon Bank Limited, the application process is explained in the section current accounts:

  • Minimum term of the deposit – 12 months;
  • Minimum amount of the deposit – 25,000.00;
  • Currency of the deposit – EUR only;

The principal and a fixed interest rate are protected even in the event that the fund, to which the deposit is linked, makes a loss. The fixed component of the interest rate is based on the current interest rates at Griffon Bank Limited. More information is available in the current interest rates section.

The premium component of the interest rate is added to the fixed component. The premium component of the interest rate is calculated using this formula:

p.i. = 0.2*((P2/P1*100)-100), where

p.i. – is premium interest per annum in %

0.2 – coefficient

P1 – price of the fund unit at the end of the business day, following the day when funds where received from the customer and placed on the premium term deposit

P2 – price of the fund unit at the end of the business day, on the same day as the date of the maturity of the premium term deposit.

Griffon Bank Limited absorbs on its own account all costs related to the purchase and redemption of the linked JTIV fund. Full interest (fixed and premium added together) is payable on the principal amount at the maturity.


JTIV Equity Fund I



JTIV Equity Fund II



JTIV Fund of Funds I