BOV Budget Account
your guide to:
General Product Information
The Benefits
Your Checklist
Your Next Step
Important Information
Our Interest Rates
Our Fees and Charges
Terms and Conditions of Use
BOV Budget Account
General Product Information
The problem with bills is that they seem to turn up at the most unlikely times. In fact, they always seem to fall due during the same month!
Making ends meet can be next to impossible. With a BOV Budget Account1 from Bank of Valletta, you can honour your commitments,
even when you least expect them!
How much can I borrow?
Through the BOV Budget Account, the Bank is allowing you a credit facility of double your net monthly salary up to a maximum of €2,500.
If you normally receive more than €500 after paying tax and NI contributions, you may overdraw your account up to €1,000. If your net
income is less than €500 a month, your credit limit will be €250. Think of your spending power, there whenever you need it!
The Benefits
You can…


Increase your purchasing power or honour your commitments even when liquidity is tight;
Administer your BOV Budget Account by means of a cheque book and/or the BOV ATM facilities, BOV Standing Orders and
BOV 24x7 Services.
You get…

A credit facility of double your net monthly salary up to a maximum of €2,5002; or

If you normally receive more than €500 after paying tax and NI contributions, you may overdraw your account up to
€1,000; otherwise

If your monthly salary is less than €500, you get a maximum of €250.
Your Checklist
When you apply for a BOV Budget Account, you need to present:


Your I.D. Card(s) for identification purposes, and
Evidence of income - FS3 and latest payslip or Profit & Loss Account together with the income and self-assessment form
submitted to the Inland Revenue Dept.
To apply for a BOV Budget Account, you must:




be over 18 years of age;
have been in full-time employment for twelve months immediately preceding the date of application; and
apply jointly if you are married, and retain the account in joint names; and
not already own a BOV eAccount.
You will need to:




obtain endorsement and a character reference from your employer on the Bank-provided ADV 77 form prior to opening the
BOV Budget Account;
have your salary or wage credited directly to the BOV Budget Account;
provide the Bank with a declaration of your earnings and your latest payslip;
provide further information if requested by the Bank.
Please remember – all Personal Loans and overdrafts are subject to bank lending criteria and final approval from your BOV Branch. Terms and Conditions apply. As much as we
would like to, it is not always possible to approve every request. Where applications are outside our normal bank lending criteria, we may decline a loan or overdraft application.
1
2
For joint account holders, the limit is taken to be the sum of each spouse's individual limit up to an aggregate maximum of €5,000.
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BOV Budget Account
Your next step…
Open a BOV Budget Account now! Visit any BOV branch or, if you’re an existing BOV 24x7 customer, apply online or call our Customer
Service Centre on 2131 2020.
Important Information
Bank of Valletta p.l.c., (Bank or BOV) is committed to providing you with sufficient information that helps you to make informed decisions
in relation to the acquisition of BOV products and services. We strongly recommend that you read this Product Information Guide carefully,
and that you keep a copy of it for your reference.
If you would like to have anything in this Guide clarified, please feel free to contact us by e-mail to [email protected], or by calling
our BOV Customer Service Centre on 2131 2020.
Throughout this Guide: the terms ‘we’, ‘us’ or ‘our’ refer to BOV and each of our subsidiaries and associated companies, the issuer of
the product or service; when we use the term ‘you’ we mean you as the user of BOV products or services; when we refer to ‘customer(s)’
we mean you or other user(s) of BOV products or services as applicable.
The Bank’s Base Rate (BBR) means the basis, established by the Bank from time to time, on which the rate of interest payable generally
on all Bank lending is determined. The applicable Bank’s Base Rate varies in accordance with the type of lending involved, whether
Business Finance, Consumer Finance or Home Loans. The base rate applicable to the BOV Budget Account is the Consumer Lending
Bank Base Rate which is currently 2.45% per annum.
Information contained in this Guide is subject to change from time to time and is up to date as at the stated Issue Date. BOV has no
obligation to update, modify or amend this Guide or otherwise notify you of any change or revision.
The information provided in this Guide is general in nature and does not take into account your financial situation or investment
requirements. Nothing in this Guide should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any
investment, product or service or to engage in any other transaction, or to provide any investment advice or service. Nothing contained
in this Guide constitutes investment, legal, tax or other advice and is not to be relied on in making an investment or other decision. You
should obtain relevant and specific professional advice before making any investment decision.
This Guide is designed for use in Malta and is not directed to, nor intended for distribution or use by, any person or entity in any jurisdiction
or country where the publication or availability of this Guide or such distribution or use would be contrary to local law or regulation. If you
choose to use this Guide, it is your responsibility to comply with the applicable local, national or international laws and any use of this
Guide outside Malta is entirely at your own risk. For guidance relating to your specific situation, please contact your legal adviser.
Use of BOV Products and Services is governed by the Terms and Conditions applicable once you sign the relevant application form and
conditions.
Queries or complaints should be discussed with the Customer Services Officer or the manager of your branch. If this is not convenient
for you or if you are still not satisfied, you may also lodge a complaint either

by phoning our Customer Service Centre on 2131 2020; or

by writing to The Manager, Customer Issues, Bank of Valletta p.l.c. 106, Misraħ San Ġwann, Il-Belt Valletta, VLT 1156 - Malta;
or

by filling our complaint form available in electronic format on our website – www.bov.com via Contact Us.
If you are still not satisfied with our reply or no agreement has been reached with us, the complaint may be directed to the Consumer
Complaints Manager at the Malta Financial Services Authority by writing to the Consumer Complaints Manager, Malta Financial Services
Authority, Triq Notabile, Ħ’Attard, BKR 3000 Malta or via e-mail [email protected]. You may also appeal to the Financial
Services Tribunal established under the Malta Financial Services Authority Act within such period and under such conditions as
established under the said Act.
Our Interest Rates
Interest Rates may change after this product has been acquired and peripheral products may incur their own rates. Please contact any
BOV Branch or our BOV Customer Service Centre on 2131 2020 for additional information.
Currently, interest on the BOV Budget Account is charged at a margin of 3.25% per annum over the Consumer Lending Bank Base Rate.
The margin over the Consumer Lending Bank Base Rate will depend upon whether the facility is secured or unsecured. In case of secured
overdraft, the rate may vary according to the type of security offered.
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BOV Budget Account
Our Fees and Charges
Fees and charges may change after this product has been acquired and peripheral products may incur their own costs. Please refer to
our BOV website for updated information, or contact any BOV Branch or our BOV Customer Service Centre on 2131 2020 for additional
information.
The BOV Budget Account is subject to a one-time processing fee of €30. Requests for a limit revision are processed at a charge of €15.
Terms and Conditions of Use
The following are the salient Terms and Conditions which presently govern BOV Budget Accounts. These Terms and Conditions are
intended merely as guidance. Any Budget Account which may be granted to you by Bank of Valletta will be governed by the Terms and
Conditions agreed to between you and the Bank at the time of your application and its acceptance by the Bank and which will be set out
in a Sanction Letter addressed to you and as may be amended from time to time.
Purpose
Personal Requirements
Security
Unsecured
Term and Repayments
The facility is repayable on demand and is subject to review at any time at the Bank’s option.
Interest
Interest at a margin over the Consumer Lending Bank Base Rate as published by the Bank from time to time will be due by you on daily
debit balances in accordance with recognised banking practice. Updated interest rates are available at any of the Bank’s branches, on
the Bank’s website www.bov.com and through Internet Banking or by calling the Bank’s Customer Service Centre on 2131 2020.
Charges
The BOV Budget Account is subject to a one-time processing fee.
The following charges may also apply:
1.
2.
3.
4.
A formally authorised temporary excess exceeding €2,500 over the credit limit is subject to a fee of 0.3% per quarter – minimum
€25.
An informal excess or an unregularised temporary excess exceeding €2,500 over the authorised credit limit is subject to a fee
of 0.3% per month on the end of month excess debit balance provided the account has been overdue by more than 7 (seven)
days. This fee is subject to a minimum of €25.
Charges for excesses will be advised to you when the Bank sends a letter to advise you of the authorised temporary excess or
to regularize your account because of an informal excess/unregularised temporary excess, as applicable.
Where the Budget Account operates on an unauthorised excess basis (as defined by item 2 above), the facility will be extended
for three months subject to a fee of 0.3% per annum applied pro rata for the three month period. Thereafter, the facility will be
extended on a monthly basis subject to a charge of 0.10% per month, minimum €25.
Other Conditions
In accordance with normal banking practice the facility is repayable on demand and is subject to review at any time at the Bank’s option.
The Bank may terminate the BOV Budget Account at any time by giving you two (2) months’ notice in writing.
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BOV Budget Account
So, however, the Bank may terminate the overdraft facility with immediate effect for an objectively justified reason which shall include, but
shall not be limited to:
a)
b)
c)
d)
e)
suspicion by the Bank that you are involved in an unauthorised or fraudulent use of the facility; or
suspicion by the Bank that there is a significant risk that you will be unable to fulfill your obligation to repay the facility; or
failure by you to repay the facility, in full or in part, on the Bank’s demand; or
your overdraft account being in excess of the authorised limit; or
failure by you to effect any deposits in your overdraft facility as the Bank may request from time to time.
In such cases, the Bank shall inform you of the termination and the reasons leading to such termination before the date of termination or,
if that is not possible, immediately thereafter.
However, the Bank shall not be obliged to inform you of the termination and/or the reason/s for such termination if the provision of the
information would be contrary to public policy or public security or would be unlawful.
You may terminate the BOV Budget Account at any time provided you inform us in writing.
In each case of termination:
a)
b)
c)
d)
e)
unused cheques or linked debit cards, if any, must be returned to us for cancellation;
you will remain responsible for cheques which are presented for payment following termination and termination will not affect
your liability to us;
upon termination we may require the immediate repayment of all amounts owed, including an amount equivalent to cheques
which have been issued and have not been presented for payment, if any together with any charges due, or alternatively, we
may agree to have the outstanding balance repaid over a period;
interest will continue to accrue on the balance outstanding until full repayment;
If the facility is terminated by the Bank, and the outstanding balance is to be repaid over a period of time, the Bank may increase
the interest rate up to six point two five per cent (6.25%) per annum over the Consumer Lending Bank Base Rate.
The Bank also reserves the right to charge a fee as per Tariff of Charges in respect of every written reminder sent to you in respect of
such an outstanding balance.
The Terms and Conditions (including the interest rate, fees and charges) may be amended from time to time by the Bank. The Bank will
give you two months’ notice of any such amendments or such other shorter notice period as may be allowed by law provided that:
a)
b)
c)
you will be deemed to have accepted these amendments, unless you notify the Bank that you do not accept these amendments
before their entry into force, in which case the Agreement shall be considered terminated. There is no charge for termination of
the Agreement;
the interest rate can be changed without giving you notice if the change is to your advantage. The Bank will tell you about the
change as soon as reasonably possible or by publishing the change in the local press or at the Bank’s branches or on the
Bank’s website www.bov.com or through Internet Banking; and
if a change in the interest rate is solely due to a change in the Consumer Lending Bank Base Rate, the Bank will inform you
thereof by publication in the local press or on the Bank's website www.bov.com. Information concerning the new Consumer
Lending Bank Base Rate will also be available at the Bank’s Branches.
Except where otherwise provided, any notices to you in connection with the Terms and Conditions of the facility will be reasonable and
will be notified to you in writing, including by such electronic means as SMS or e-mail (whether through Internet Banking or otherwise).
The Bank reserves the right to effect changes without notice if you are in breach of or are likely to breach any of these Terms and
Conditions or are otherwise in default or in the event of a change in the law and/or a decision or recommendation of a court, regulator or
similar body. The Bank will tell you about the change as soon as reasonably possible or if applicable, by publishing the change in the
local press or at the Bank’s branches or on the Bank’s website www.bov.com or through Internet Banking.
The Bank reserves the right to close the account at any time if there is a valid reason for doing so. The Bank undertakes to give the
Account holder reasonable notice of such closure. In addition, the Bank may refuse to carry out a transaction or immediately terminate a
transaction or reverse a transaction, in whole or in part, if the Bank or its correspondent bank reasonably believes that the transaction is
invalid, in any manner fraudulent or illegal or made in bad faith or that it has not been carried out by the Account holder or if the Account
holder has not acted in accordance with these Terms and Conditions or for any other justifiable reason. The Bank undertakes to inform
the Account holder of the said refusal, termination or reversal. Furthermore the Bank may provide transaction and customer information,
including details of ultimate beneficiary owner, to its intermediary bank, upon the latter bank's request and where such information is
required in order to enable such intermediary bank to adhere to its anti-money laundering and funding of terrorism regulatory obligations.
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BOV Budget Account
You are entitled to withdraw from this facility agreement without giving any reason, within fourteen (14) days from the date when you sign
the sanction letter, by notifying the Bank in writing thereof (the ‘‘Withdrawal Notification’’). If you withdraw from this facility agreement, you
shall repay any part of the facility which has been drawn down, together with the relative interest from the date of draw down of the facility
until the date of repayment, by not later than thirty (30) days from the date of the Withdrawal Notification.
Interest will continue to accrue on the balance outstanding until full repayment.
In each case of withdrawal:
1)
2)
3)
unused cheques, if any, must be returned to us for cancellation;
you will remain responsible for cheques which are presented for payment following withdrawal and withdrawal will not affect
your liability to us;
you will not be entitled to a refund of any charges paid by the Bank to public administrative bodies, which the Bank is not entitled
to recover.
You acknowledge that the Bank will issue its Sanction Letter in reliance on representations and/or information given to the Bank.
Consequently, if any event occurs or circumstances arises which, may reasonably affect the performance of all or any of your obligations
under the Sanction Letter then, or at any time thereafter, prior to utilisation of the banking facilities indicated above, the Bank shall have
the right to amend, withdraw or cancel the Sanction Letter by giving you notice thereof by simple letter.
Unless otherwise agreed, the English language will be used for the purpose of interpreting the Agreement and for all communications in
connection with the Agreement.
Complaints regarding the facility are to be discussed with the Bank’s Customer Services Officer or the Manager of the branch where the
facility is domiciled. If this is not convenient for the Account holder or if the Account holder is still not satisfied, the Account holder may
also call on 2131 2020 or may write to The Manager, Customer Issues, Bank of Valletta p.l.c. 106, Misraħ San Ġwann, Il-Belt Valletta,
VLT 1156 - Malta or by filling our complaint form available in electronic format on our website – www.bov.com via Contact Us.
If you are still not satisfied with the Bank's reply or no agreement has been reached with the Bank, the complaint may be directed to the
Consumer Complaints Manager at the Malta Financial Services Authority by writing to the Consumer Complaints Manager, Malta Financial
Services Authority, Triq Notabile, Ħ’Attard BKR 3000 - Malta or via e-mail [email protected]. The Account holder may also
appeal to the Financial Services Tribunal established under the Malta Financial Services Authority Act within such period and under such
conditions as established under the said Act.
Except where otherwise provided or where specifically regulated in your Budget Account agreement with the Bank (namely, the Sanction
Letter), your Budget Account will also be regulated by the Terms and Conditions of the Bank’s Current Account as may be applicable
from time to time. The updated Current Account Terms and Conditions are available at any of the Bank’s branches, on the Bank’s website
www.bov.com, through Internet Banking or by calling the Bank’s Customer Service Centre on 2131 2020.
Please also refer to the Information supplied in accordance with the Bank’s obligations under the Central Bank of Malta Directive No.1 on
the Provision and Use of Payment Services, which shall form part of your agreement with the Bank in so far as it is applicable to your
Budget Account. This Information is available at any of the Bank’s branches, on the Bank’s website www.bov.com, through Internet
Banking or by calling the Bank’s Customer Service Centre on 2131 2020.
These Terms and Conditions shall be governed by and construed in accordance with Maltese Law and any dispute shall be subject to
the non-exclusive jurisdiction of the Courts of Justice of Malta.
CBM Directive No. 14 – Central Credit Register
In line with Directive No. 14 issued by the Central Bank of Malta relating to the establishment of a new Central Credit Register, information
related to all your credit facilities in excess of €5,000 (if any) will be made available to the Central Bank for inclusion in this Register. In
terms of this Directive, all banks in Malta are legally obliged to provide to the Central Bank all the necessary information on a monthly
basis.
The credit facilities reportable for the purposes of this Register include loans, overdrafts, commitments, credit cards and other credit lines
which are deemed to represent a credit exposure.
Access to the Register, which will be operated through a fully auditable system on the CBM portal, will be strictly limited to banks in Malta,
whilst customers themselves, or their lawful representatives, may also request to exercise the right to have an extract of the information
held on them on the Register.
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BOV Budget Account
Depositor Compensation Scheme
Pursuant to the Depositor Compensation Scheme Regulations (Legal Notice 385 of 2015) (the ‘‘Regulations’’), as may be amended from
time to time, the Bank is obliged to participate in, and contribute to, the Depositor Compensation Scheme (the ‘‘Compensation Scheme’’)
set up in terms of the Regulations. Where you satisfy the definition of ‘‘depositor’’ under the Regulations, you may make a claim under
the Compensation Scheme in terms of the Regulations. The Compensation Scheme shall provide for the payment of compensation in
respect of claims arising out of the Bank’s inability to meet its obligations to depositors.
Further information can be obtained from:
a.
b.
c.
d.
e.
www.compensationschemes.org.mt;
by contacting Depositor Compensation Scheme, c/o Malta Financial Services Authority, Triq Notabile, Ħ’Attard BKR 3000, Malta;
Tel: 2144 1155; E-mail: [email protected];
through the information sheet (as per below) which can also be viewed at www.bov.com;
any BOV Branch;
by calling our Customer Service Centre on 2131 2020.
Depositor Information Sheet
Basic information about the protection of deposit
Deposits in Bank of Valletta are protected by: The Depositor Compensation Scheme1, established under regulation 4 of the Depositor
Compensation Scheme Regulations, 2015.
Limit of protection: €100,000 per depositor per credit institution2.
If you have more deposits at the same credit institution: All your deposits at the same credit institution are ‘‘aggregated’’ and the total
is subject to the limit of €100,000.
If you have a joint account with other person(s): The limit of €100,000 applies to each depositor separately3.
Reimbursement period in case of credit institution’s failure: 20 working days4.
Currency of reimbursement: EURO
Contact: Depositor Compensation Scheme,
c/o Malta Financial Services Authority,
Triq Notabile, Ħ’Attard BKR 3000, Malta;
Tel: 2144 1155; E-mail: [email protected]
More information: www.compensationschemes.org.mt
1
Scheme responsible for the protection of your deposit
Your deposit is covered by a statutory Deposit Guarantee Scheme. If insolvency of your credit institution should occur, your deposits
would in any case be repaid up to €100,000.
2
General limit of protection
If a deposit is unavailable because a credit institution is unable to meet its financial obligations, depositors are repaid by the Depositor
Compensation Scheme, in accordance with the regulations. This repayment covers a maximum of €100,000 per credit institution. This
means that all deposits at the same credit institution are added up in order to determine the coverage level. If, for instance, a depositor
holds a savings account with €90,000 and a current account with €20,000, he or she will only be repaid €100,000.
In addition to the protection described above, deposits may be protected in some cases up to a maximum of €500,000 for six months
after the amount has been credited or from the moment when such deposits become legally transferable. In order to qualify for such
higher protection, a deposit in excess of €100,000 must meet any one of the following additional criteria:
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BOV Budget Account
(A) it comprises:
(a)
(b)
monies deposited in preparation for the purchase of a private residential property by the depositor; or
monies which represent the proceeds of sale of a private residential property of the depositor; or
(B) it comprises sums paid to the depositor in respect of:
(a)
(b)
(c)
(d)
(e)
(f)
a separation, divorce or dissolution of their civil union; or
benefits payable on retirement; or
a claim for compensation for unfair dismissal; or
a claim for compensation for redundancy; or
benefits payable for death or bodily injury; or
a claim for compensation for wrongful conviction.
More information can be obtained under www.compensationschemes.org.mt
3
Limit of protection for joint accounts
In case of joint accounts, the limit of €100,000 applies to each depositor.
However, deposits in an account to which two or more persons are entitled as members of a business partnership, association or grouping
of a similar nature, without legal personality, are aggregated and treated as if made by a single depositor for the purpose of calculating
the limit of €100,000.
4
Reimbursement
The responsible Deposit Guarantee Scheme is the Depositor Compensation Scheme, c/o Malta Financial Services Authority, Triq
Notabile, Ħ’Attard BKR 3000, Malta; Tel: 2144 1155; E-mail: [email protected]. It will repay your deposits up to €100,000
within 20 working days until 31 December 2018; within 15 working days from 1 January 2019 until 31 December 2020; within 10 working
days from 1 January 2021 until 31 December 2023; and within 7 working days from 1 January 2024 onwards.
As of 31 May 2016, where the Depositor Compensation Scheme cannot make the repayable amount(s) available within 7 working days,
depositors shall have access to an amount, not exceeding €1,500, to cover the cost of living, within 5 working days of a request. The
Depositor Compensation Scheme shall only grant access to such amount within 5 working days on the basis of data provided by the
credit institution.
If you have not been repaid within these deadlines, you should make contact with the Depositor Compensation Scheme since the time to
claim reimbursement may be barred after a certain time limit. Further information can be obtained from
www.compensationschemes.org.mt.
Other important information
In general, all retail depositors and businesses are covered by the Depositor Compensation Scheme. Exceptions for certain deposits are
stated on the website of the Depositor Compensation Scheme. Your credit institution will also inform you on request whether certain
products are covered or not. If deposits are covered, the credit institution shall also confirm this on the statement of account.
Product Information Guide
BOV
Budget Account
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