Bank services for natural persons in the Silk Road Bank in Georgia
The bank system of Georgia is one of the most reliable in the region. It is represented by 15 commercial banks and the National Bank of Georgia. The peculiarity of the local bank system is that all banks except one are owned by foreign shareholders, while banks with state participation are absent at all. Non-residents have many advantages from Georgian banks, among which are: relatively low prices of service, non-disclosure of information to tax bodies of other countries, the presence of all necessary bank services for natural persons and legal entities. Still, it should be noted that not every Georgian bank has a specially qualified staff and financial products for non-residents. Such services are available in the Silk Road Bank, one of a few Georgian banks that specialize in servicing of non-residents. The Silk Road Bank offers to non-residents: to open a personal account, to issue a payment card or to deposit assets.
The Silk Road Bank – the crossing between East and West
The Silk Road Bank is one of the leading Georgian banks fully owned by the Silk Road Financing Group. The bank starts its history in 1995, when the “Diskont Bank” was established. Particularly on 31 January of 2000, as the result of merging of the latter and the Export-Import Bank, the Silk Road Bank appeared on the Georgian bank market. In 2005, 49% of shares of the latter were purchased by the Kazakh BTA Bank for 2,5 mln. USD. In the course of time, Kazakhs planned to increase their participation in the capital of the Georgian institution, but in 2014 their share in the Silk Road Bank was bought by the financial group Silk Road.
Currently, the Silk Road Bank enters the namesake financial group. The group operates in 4 directions: real estate, telecommunications, energy and transport. The Silk Road Financing Group owns hotels Radisson Blu and Radisson Collection; it also participates in realization of the project “The Batumi Riviera”. In sphere of telecommunications, the group is famous for it owns the biggest Georgian mobile operator Silknet (over 2 mln. subscribers). The energy branch in the Silk Road Financing Group is represented by hydro power plants Silk Road Energy.
So far, the branch network of the Silk Road Bank comprises the main office and four service centers in Tbilisi; Batumi and Poti each have a service center. In the Silk Road Bank, natural persons can obtain the following services:
- open a deposit;
- apply for credit;
- issue a payment card;
- open an operating account.
To obtain remote access to their financial instruments, clients can use different types of banking.
Types of deposits in the Silk Road Bank
In the Silk Road Bank in Georgia, clients can use the following deposit programs:
- fixed-term deposit with payment of interest rate at the end of term or every month;
- children deposit – designed for accumulation of assets before children become of legal age;
- saving deposit – helps to accumulate necessary amount for a costly item;
- demand deposit – suitable for clients who may need money at any moment.
It should be mentioned that Georgia had implemented the system of insurance of deposits since 1 January of 2018, which provides reimbursement of deposits or balance on account within 5 000 lari (approx. 2 000 USD) in one bank.
Terms of fixed-term deposit in a Georgian bank
A fixed-term deposit is optimum for clients who are ready to dispose money for an indefinite period without the right of early withdrawal. Standard terms of this deposit are:
- currency – lari/US dollars/euro;
- minimum payment – 100 lari or 50 US dollars/euro;
- duration – 3 – 24 months;
- currency conversion fee – 0,5%;
- payment of the interest is provided if the deposit is in US dollars or lari.
Effective interest rates on yearly deposit depending on term:
- in lari: 3 — 5 months – 3%, 6 – 8 months – 3,5%, 9 – 12 months – 4%, 13 – 17 months – 4,5%, 18 – 24 months – 4,9% yearly;
- in US dollars: 3 – 8 months – 0,5%, 9 – 11 months – 1,0%, 12 months – 1,5%, 13 – 24 months – 2,0% yearly;
- in euro: 6 – 11 months – 0,5% yearly, 12 – 24 months – 1,0% yearly.
Deposits can be placed for term 3 to 24 months at a pace 1 month.
Effective interest rates in a fixed-term deposit in the Georgian bank with monthly payment of interest:
- in lari: 3 — 5 months – 2,5%, 6 – 8 months – 3,0%, 9 – 12 months – 3,6%, 13 – 17 months – 4,1%, 18 – 24 months – 4,6% yearly;
- in US dollars: 9 – 11 months – 0,5%, 12 months – 1,0%, 13 – 24 months – 1,5% yearly.
Terms of children deposit in the Silk Road Bank of Georgia
Many banks today offer long-term deposits which purpose is to accumulate money for children’s study, apartment or costly items. The Georgian Silk Road Bank is not exclusion; the bank offers children’s deposit, where money can be accumulated under the following terms:
- currency: dollar/euro/lari;
- minimum payment – from 5 lari/US dollars/euro;
- minimum monthly payment – unlimited;
- term – deposit is closed minim 3 months before the legal age;
- interest is accrued after 12 calendar months from the date of opening of the deposit, and are accrued to the balance, therefore increasing it.
Effective interest rates on children deposit:
- in lari – 5% yearly;
- in US dollars – 1,0% yearly;
- in euro – 0,5% yearly.
It should be noted that interest rates are valid for 2 years, then reviewed and replaced with rates currently applicable in the bank. This repeats every 2 years.
Saving deposit in the Silk Road Bank
This deposit has no limitations on the minimum amount, term of validity and amount of monthly contribution. Its benefit is the option of withdrawal of cash from deposit account in the Silk Road Bank at any time.
Regular terms of money accommodation on the saving deposit in the Silk Road Bank:
- currency – US dollars and lari;
- duration– unlimited;
- balance that was contributed by the client in cash can be withdrawn without a commission fee;
- if the balance of the account during one month makes less than 400 lari/ 200 US dollars, the bank withdraws a commission in amount of 1 lari;
- different interests are accrued on the balance. On the minimum balance during one month, 1,5% in lari or 1,0% in US dollars is accrued, while 0,5% yearly is accrued on the rest of the balance.
Cumulative saving deposit in the Silk Road Bank
The Silk Road Bank lets you easily save money for a costly item using the cumulative saving deposit. Terms of this deposit provide monthly recharge minimum for 10 lari/US dollars/euro. Accommodating money can be made for a period 6 – 24 months in lari/US dollars/euro; the minimum contribution is 5 lari or similar amount in other currency. Interest on the cumulative saving deposit is accrued at the end of the agreement term.
Yearly effective interest rates depending on the term:
- in lari — 6 – 8 months — 2%, 9 – 11 months – 2,5%, 12 – 17 months – 4,0%, 18 – 24 months – 4,5%;
- in US dollars — 6 – 8 months — 0,5%, 9 – 24 months – 1,0%;
- in euro — 12 – 17 months – 0,3%, 18 – 24 months – 0,5%.
Demand deposit in the Georgian Silk Road Bank
This type of deposit in the Silk Road Bank does not provide mandatory monthly recharges; there is not minimum or maximum amount, no limitations on period; assets can be withdrawn at any moment. Nevertheless, a demand deposit is only opened in US dollars or lari. It should be also remembered that the remaining balance cannot be less than 400 lari or 1 500 US dollars. The interest on the deposit upon request are calculated monthly and enrolled to the deposit.
The bank takes a service fee in amount of 1 lari, if during six months the minimum balance remained less than the limit provided above.
Withdrawing a deposit within the amount contributed in cash is free. The client pays a commission for withdrawing money transferred to the deposit by wire.
Yearly effective interest rate on the demand deposit:
- in lari – 2,2%;
- in US dollars – 0,3%.
The main principle of the demand deposit is not accumulating money or obtaining an extra source of financing, which is shown by rather low interest rate, but to obtain a flexible financial instrument that can be used as a current personal account without commission for withdrawal and with possibility of earning a bit more.
Payment cards of the Silk Road Bank
The Silk Road Bank only issues payment cards of the international system Visa. The bank operates on debit, credit, standard cards and premium-class cards.
The line of Visa debit cards is represented by these types of plastic cards:
- Electron – limit on cash withdrawal in other banks – not more than 5 000 USD per day, cash withdrawal in ATMs of the Silk Road Bank not more than 3 000 USD, in other ATM — 1 500 USD. Limits for wire payment in trade network – not more than 5 000 USD;
- Classic – has increased limits. Using it, withdrawal at cashiers of other banks is possible – up to 10 000 USD, in corporate ATM and АТМ of other banks – up to 3 000 USD. Limit for wire payments – 20 000 USD;
- Gold – the most prestigious payment card of the bank, with the biggest limits for withdrawal and wire payments: not more than 15 000 USD – in cashiers of other banks, not more than 5 000 USD – in ATMs of any banks and not more than 40 000 USD – for wire payments.
No limits for cash withdrawal using the mentioned payment cards in the cashier’s of the Silk Road Bank. Payment cards of this bank allow withdrawing cash not only in “mother” ATMs, but also in ATMs of any bank worldwide. Besides, the partner bank of the Silk Road Bank on maintenance of payment cards is the Bank of Georgia. Certainly, payment cards of this bank are suitable for buying goods and services either in supermarkets, shops, or online.
Terms of service for Visa Electron in the Silk Road Bank
Visa Electron is the most popular payment card. It will suit those clients who are not planning to actively use it for payments and cash withdrawal. Terms of service for Visa Electron are as follows:
- service – 10 lari per year (approx. 4USD);
- cost of service for an extra card – 5 lari per year (approx. 2 USD);
- duration of card – 2 years;
- payment for early issue of payment card – 25 lari;
- commission for unauthorized overdraft – 48% yearly;
- adding payment card to international stop list – 50 USD weekly;
- commission for withdrawal in the Silk Road Bank – 0,5% min. 0,2 lari/US dollars/euro, in the partner bank — 0,6% min. 0,5 lari/US dollars/euro, in other banks – 2,5% min. 6 lari or 3 US dollar/euro;
- cash withdrawal in ATMs of the Silk Road Bank – 0,2% min. 0,2 lari/US dollars/euro, in АТМ of the partner bank — 0,5% min. 0,2 lari/US dollars/euro, in АТМs of other banks – 2,5% min. 6 lari or 3 US dollar/euro;
- conversion – official exchange rate +1%.
Terms of service for Visa Classic in the Silk Road Bank
Payment card Visa Classic has a higher status in comparison to the previous card. This is obvious by defined limits on withdrawal and payments. Tariffs under the card Visa Classic are the same as Visa Electron, but servicing of the first is more expensive:
- service – 20 lari per year;
- service for an extra card – 15 lari per year.
A user shall also provide the minimum balance on the account in amount of: 30 lari or 20 US dollars/euro.
Terms of service for Visa Gold in the Silk Road Bank
This is the payment card of the top status among all available in the Silk Road Bank, which marks the prestige of its owner. The yearly cost of service for Visa Gold is only 70 lari (approx. 28 USD), service for an extra card costs 50 lari per year. Also, owners of prestigious card shall provide a minimum balance on the account in amount of 100 lari or 50 US dollars/euro. Other fees and tariffs are similar to previous cards.
Credit cards in the Silk Road Bank
Credit cards in the Silk Road Bank are executed within the scope of two programs:
- PlastiCard – this credit card of the class Visa Gold is issued for natural persons with an income at least 300 lari monthly, without bond or guarantees;
- Comfort – this credit card also has a function of saving account. When a user accommodates money on this account, an interest is accrued in amount of 6% yearly.
The credit card PlastiCard allows using credit limit in amount from 200 lari to 5 average monthly salaries (not more than 10 000 lari). The price for issuance of the card is 40 lari, the monthly minimum payment – 10%, the grace period – 1 or 2 months. The commission for withdrawal depends on the selected tariff, and costs less than 2,5% minimum 2 lari or 1 US dollar/euro.
Within the scope of the credit program Comfort, natural persons can obtain a payment card of class Visa Classic with the limit: 200 – 15 000 lari or 300 – 10 000 US dollars. Terms of service for this card are as follows:
- grace period – 5 calendar days;
- yearly service – 30 lari;
- minimum monthly payment – 100%/50%/25%/5%;
- cash withdrawal – from 1% minimum 2 lari or 1 US dollar;
- перевод на другую платежную карту — 1% minimum 2 lari or 1 US dollar.
Personal account in the Silk Road Bank
A personal account allows resident and non-resident in Georgia making payments, paying for shopping, and withdrawing cash. This financial instrument allows making transactions as independently by a user, so as in the names of family members. Having a personal account, a client obtains a possibility to issue a payment card, and open an unlimited number of extra accounts in different currencies.
To open a personal account, a client should only visit any branch of the Silk Road Bank with personal identity: passport, international passport, or ID.
Tariffs and terms of a personal account:
- opening multi-currency account and service – free;
- commission for servicing of inactive account for more than six months – 5 lari per month;
- price for servicing an extra account – 1 lari per month;
- cash withdrawal within the limit of earlier contributions – 0,2% in lari or 0,5% in US dollars;
- transfers and payments within the Silk Road Bank – free;
- payments in other banks – 0,07% minimum 1 lari;
- international payment in US dollars/rubles/Swiss francs/euro/sterlings – from 0,2% (depends on the sum of transfer);
- account statement – 5 lari.
Remote services in the Silk Road Bank
In the Silk Road Bank, as residents, so as non-residents can use standard services of remote account management:
- automatic money transfers – upon request of the client, the bank automatically makes periodical payments, e.g. pays for utilities every month. The price of the service – 1 lari per month;
- Internet banking – the client may perform any banking operation remotely at any time, for example: transfers, currency conversion, and payment for services. The subscription fee depends on a package: minimum package provides for free, standard – for 20 lari, maximum – for 40 lari. A monthly service fee is also provided in amount of 3 lari;
- SMS banking – allows obtaining information on the state of account and transfers by sending SMS. Subscription and service – free;
- e-mail banking – using this service the client can obtain information on his accounts and transactions totally free;
- phone banking – the service allows client obtaining complete information on state of his accounts in the Silk Road Bank 24/7. Contact number: 2 242 242.
The Silk Road Bank is the universal Georgian bank where non-residents may obtain all necessary financial services. Here, they also can open a personal account and obtain a corresponding plastic card of an international payment system, or open a deposit. Meanwhile, the cost of bank services is significantly lower than in European or Baltic banks. It should also be remembered that the Silk Road Bank, just as other Georgian banks, does not forward the financial information on clients to tax bodies of other countries, which is very important for non-residents who wish to provide a high level of confidentiality of their transactions. If you are interested in services of the Silk Road Bank, please contact us at: email@example.com , and we will help you to become its clients.
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