Bank of Valletta announced the launch of a new term deposit account, BOV Term ISA. This product, which qualifies for tax exemption in respect of interest earned on the capital invested in it, is intended to make it more attractive for customers to save for their retirement. 

Denominated in euro, the term deposit account has a maturity of one year and carries an interest rate of 1.10% pa.   

Speaking about this new product, Kenneth Farrugia, Chief Business Development Officer at Bank of Valletta explained that, "The BOV Term ISA is the first of its kind to be offered on the local market and has been designed to reflect the requirements of the Legal Notice issued by the Government of Malta regarding the Third Pillar Pension Scheme. Through this new product, the Bank's customers are being provided with an incentive in the form of a tax exemption on the interest income earned on the capital held in this Account."

In effect, the tax exemption will be applied on the interest earned on a maximum capital investment of Euro 1,000 annually with this maximum being extended to Euro 2,000 during this calendar year.  Further deposits into the account will be possible on the annual maturity of the account. A minimum deposit of Euro 200 is required to open the account.

As the leading Bank in Malta, Bank of Valletta is strongly committed to remain at the forefront in providing its clients with an innovative and comprehensive suite of financial products that customers will find to be relevant and appropriate to them in the different stages of their lifecycle. Through this new deposit product, the Bank is actually assisting its customers to make the most of their life savings as part of their overall financial plan ultimately aimed at ensuring that the current standard of living is maintained at the retirement stage of their life.  

Further information on the BOV Term ISA may be obtained from any BOV branch or Investment Centre, the Bank's website www.bov.com or through the Bank's Customer Service Centre on 2131 2020.