MTB Exchange (UK) Ltd.
 
  MTB NRB Banking
 
 
WES Bond
 
MTB is authorized by Bangladesh Bank to sell Wage Earners Development Bond (Taka), US Dollar Premium Bond and US Dollar Investment Bond to NRBs.

The main features and benefits of the WES Bond are depicted below -

Wage Earners Development Bond:

Eligibility:

1. A Bangladeshi wage-earner serving abroad can buy this bond in his own name or in the name of any other person named in his application;

2. A beneficiary of a wage-earners' remittance in foreign exchange in his own name or in the name of wage-earner if he produces sufficient proof to the effect that the remittance has been made by the wage-earner out of his own earnings in foreign exchange or in Taka currency received against foreign exchange remittance and the remittance is adequate to cover the value of the Bond.

3. Where a wage-earner is an employee of the Government or a statutory, autonomous or semi-autonomous body working abroad on lien he shall be eligible to purchase a bond if he has fulfilled the requirements as prescribed by the Government from time to time in respect of compulsory remittance of a portion of his gross salary to Bangladesh through normal official channel at the official rate of exchanges. Employees of Bangladesh Missions abroad employed by the Government and paid in Foreign Currency, being not Wage earners, shall also be eligible to purchase a bond.

Denomination:

The bond(s) shall be issued in the denominations of Tk.25,000/-,50,000/- and 1,00,000/- and in such other denominations as the Government may decide. At present MTB can issue the bond of TK 50,000 per leaf.

Maturity:

The Bond(s) shall mature for payment on or after five years from the date of its purchase but the Bond-holder may surrender the Bond(s) and encash the same at the paying office after six months of purchase when he will be paid the principal amount together with interest on premature encashment. Interest Rate:
The Bondholder will be entitled to draw interest on half-yearly basis at 12% after being matured but they are also entitled to get interest as under:

Premature Encashment Rate of interest payable
Before six months from the date of issue. No interest .
On completion of six months but before one year. 9% interest forsix months.
On completion of one year but before 1.5 years. 10% for one year.
On completion of 1.5 years but before two years. 11% for 1.5 years.
On completion of two years and thereafter. 12%
(The new rates have been effective from 22.02.1997)  

  The Bond-holder will be entitled to draw interest on half-yearly basis at 12% per annum. Any interest not drawn will be paid with principal amount on maturity with the benefit of compound interest at 12% on half-yearly basis.

Death Risk Benefit:

For investment of Tk. 25,000/- and above, subject to an initial investment of Tk. 25,000/- in one instance by a wage-earner, the wage-earner shall be provided with a death-risk-benefit as per as the followings:

(a) for investment between Tk.25,000 and Tk.50,000. death-risk benefit for 30% of the Investment;
(b) for Investment between Tk.51,000 andTk.75,000. death-risk-benefit for 40% of the Investment;
(c) for investment of Tk.76,000 and above death-risk-benefit for 50% of the Investment.

Provided that the maximum amount of death-risk-benefit shall not exceed Tk.2,50,000 and that the age of the wage-earner shall not be over 55 years at the time of his death.

US Dollar Premium Bond:

Eligibility:

The Bond may be issued in the name of a holder of a non-resident account against remittances from abroad to the account.

Denomination:

The Bond (s) shall be issued in the denominations of US $500, $1000, $5000, $10,000 and $50,000. At present MTB can issue the bond of $1000 per leaf.

Maturity:

The U.S. Dollar premium bond (s) shall be matured for payment after completion of three years from the date of its issue. However, the Bond holder may surrender the Bond (s) before maturity and encash the same at the paying office.

Interest Rate:

The Bondholder will be entitled to draw interest on half-yearly basis at 7.5% after being matured but they are also entitled to get the interest as under:  

Premature Encashment Interest payable
Within one year from the date of issue. No interest.
After completion of one year but within two years. 6.5%
After completion of two years but within three years. 7%
After completion of 3 years. 7.5%

Death risk benefit:

For investment of US $10,000 and above, subject to an initial investment of US $ 10,000 in one instance, the concerned purchaser will be provided with death-risk benefit as provided as under:

(a)For investment between US$ 10,000 and US$ 20,000 Death-risk-benefit for 15% of the Investment (Taka equivalent);
(b)For investment between US$ 20,500 and US$ 50,000 Death-risk-benefit for 20% of the Investment (Taka equivalent);
(c) For investment US$ 50,500 and above Death-risk-benefit for 25% of the Investment (Taka equivalent);

US Dollar Investment Bond:

Eligibility Criteria:

The Bond may be issued in the name of a holder of a non-resident account against remittances from abroad to the account. Denomination:

The Bond (s) shall be issued in the denominations of US $500, $1000, $5000, $10,000 and $50,000. At present MTB can issue the bond of $1000 per leaf.

Maturity:

The US Dollar Investment Bond(s) shall be matured for payment after completion of three years from the date of its issue. However, the Bond holder may surrender the Bond (s) before maturity and encash the same at the paying office.

Interest Rate:

The Bondholder will be entitled to draw interest on half-yearly basis at 6.5% per annum after being matured but they are also entitled to get the interest as under:

Premature Encashment Interest payable
Within one year from the date of issue. No interest.
After completion of one year but within two years. 5.5%
After completion of two years but within three years. 6%
After completion of 3 years. 6.5%

 The principal and interest will be payable in US Dollar to the holder or his/her nominee as per rule 9. The principal and interest amount due to the holder or his/her nominee may also be paid in Bangladesh currency if opted for by the holder/ nominee. On maturity of the Bond the principal amount may be reinvested for another term of three years or repatriated abroad in foreign exchange or may be credited to the FC account.


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