Holm Bank adds shorter terms to fixed-term deposits and lowers the minimum amount

As of 3 February, private individuals can enter into fixed-term deposits at Holm Bank also for one and two months. At the same time, the bank lowers the minimum amount for a private individual’s fixed-term deposit from the current 500 euros to 100 euros.

According to Kaspar Kalvet, Chairman of the Management Board of Holm Bank, the changes are aimed at supporting the depositing habits of people in Estonia. “Our position in the deposit market is clear - we want to be depositors’ first choice. This requires the best deposit interest rates and even more flexible solutions,” said Kalvet.

“Regular depositing helps shape informed financial behaviour. Shorter terms are suitable for those who need access to their money in the near future, but still wish to earn a fixed interest income. In order to make it possible to start depositing also with smaller amounts, we lowered the minimum amount to 100 euros,” Kalvet said.

Kalvet explained that keeping money in a current account often means a decrease in its real value, whereas a fixed-term deposit makes it possible to earn guaranteed interest income. “Whether the amount is large or small, money should not just sit idle in an account. A lower minimum amount provides an opportunity to try depositing also for those for whom it was not possible before. When planning deposits, different terms can be used: by opening shorter-term deposits, part of the funds is released earlier together with the interest earned, while the remainder continues to earn interest,” he said.

“The greatest values of a fixed-term deposit are clarity, steady growth and security. The depositor knows in advance how much interest income will be earned and when the money will be released. In addition, banks’ fixed-term deposits in Estonia are protected by the state Guarantee Fund up to 100,000 euros,” Kalvet added.