Bank of Bahrain and Kuwait BBK- Bahrain has launched two new innovative products

The Premier FD and the Pre-i FD are the newest additions to BBK's product portfolio, and stand as innovative products that mark a breakaway from conventional plain-vanilla alternatives.

The Premier FD is a US-dollar denominated LIBOR-based deposit that provides a higher interest payout than the usual fixed deposit rate. The LIBOR-based rate is adjusted every six months so our customers do not miss-out on the expected increase in interest rates. In addition, the Premier FD provides a steady flow of liquidity through the monthly or quarterly interest payments that could be either cashed or re-invested. The Premier FD has the following features:

Dollar-denominated fixed deposit scheme.

Payment can be accepted in US Dollars or BD equivalent.
The BD value of both the principle and interest is guaranteed.
Minimum deposit amount is US$100,000.
Maturity is set for 1, 2 or 3 years.

Interest:

1-year Premier: 6-month LIBOR payable quarterly. Interest is reset at the end of six months at the then prevalent 6-month LIBOR.

2-year Premier: 6-month LIBOR payable monthly. Interest is reset every six months at the then prevalent 6-month LIBOR.

3-year Premier: 6-month LIBOR + 1/8% payable monthly. Interest is reset every six months at the then prevalent 6-month LIBOR.
Alternatively, interest can be fixed for the entire duration - if the depositor so wishes - at the applicable LIBOR rate.
Interest accrued can be cashed out or reinvested at the same rate.

Should the depositor require liquidity, he / she will have access to cash through a credit extension secured against the fixed deposit at a favorable rate.

With maturities of 6 or 12 months, the Pre-i FD complements the Premier FD. The Pre-i FD, also a US-dollar denominated retail deposit, introduces the novel concept of paying the interest upfront.

The Pre-i FD has the following features:

1.Dollar-denominated fixed deposit scheme.

2.Payment can be accepted in US Dollars or BD equivalent.

3.The BD value of both the principle and interest is guaranteed.

4.Minimum deposit amount is US$50,000.

5.Maturity is set for 6 or 12 months.

6.Interest is set at standard BBK fixed deposit rates, but the payment is made upfront.

7.The interest can either be cashed out or reinvested at the same rate.