'City Bank's foreign currency acc holders to enjoy lifetime free maintenance'

In an effort to draw idle foreign currency held by individuals, City Bank PLC is offering special deals, including free lifetime account maintenance, for customers who open a Resident Foreign Currency Deposit (RFCD) account with the bank by 31 March. Opening this account allows customers to earn up to 7% annual interest on their deposits. Additionally, with a debit card, customers can freely spend in any currency abroad, exceeding Bangladesh Bank's set spending limit of $12,000, if necessary, said Arup Haider, head of Retail Banking at City Bank, during an interview with TBS Staff Correspondent Sakhawat Prince.

Why offer special deals to RFCD account holders?

The central bank is encouraging banks to repatriate idle dollars held by customers, thereby boosting the flow of cash dollars within the banking channel. Consequently, customers will have increased access to cash dollars from the bank as needed. 

Special emphasis has been placed by the central bank on the opening of RFCD accounts, which are accessible to any individual within the country for maintaining funds in foreign currency.

Typically, individuals have a set dollar limit for overseas expenditures, but circumstances may necessitate additional funds, such as for medical expenses. In such cases, the balance in the RFCD account offers the opportunity to spend beyond this limit.

City Bank's profit margin from this account service is modest. Our guiding principle is "Making Sense of Money". Despite the lower profit margin, we aim to accommodate more customers.

Customers depositing into this account can get a maximum interest rate of up to 7% per annum, determined by adding 1.5% to the international benchmark SOFR rate of 5.3%. Notably, just a year ago, this rate was 1% to 2%. So, customers should opt for opening an RFCD account at any bank rather than storing dollars at home.

How to open an RFCD account?

Customers who visit our bank directly or contact the number — 09617116234 — will receive comprehensive assistance from City Bank officials to open an account. This service is available at all Authorized Dealer (AD) branches of City Bank.

There is a common misconception that opening an RFCD within the country is not possible. Anyone can open this account at any bank.

What are the special offers of City Bank?

Presently, there is the option to open an RFCD account through all banks in the country. However, City Bank provides three distinct offers for customers opening this account by 31 March.

The account maintenance cost, which is $14, will be waived for a lifetime for customers who open the account by this period.

Moreover, customers will receive a debit card linked to the account. While a $12 fee is typically charged for obtaining this card, it is waived for all customers opening the account before 31 March. This waiver applies to multiple card requests.

Additionally, customers will enjoy access to the City Bank American Express Lounge at Dhaka airport with this card. A minimum account balance of $2,000 is required for eligibility.

How do customers deposit dollars into this account?

With the RFCD account, customers can retain surplus dollars as deposits upon returning from overseas trips. Each time a customer returns from abroad, they can deposit up to $10,000 into the account.

If they wish to deposit more than this amount, they can do so by completing the Foreign Money and Jewelry (FMJ) form provided by customs authorities, which must be submitted within 30 days of returning home. 

Furthermore, customers can deposit money against their overseas trips made in the past. Even if a customer travelled abroad in 2018 but did not deposit any dollars into the account upon arrival at that time, they can still deposit dollars corresponding to that trip.

How do customers spend dollars from their accounts?

Normally, customers have a yearly spending limit of $12,000 as per the central bank regulations. Nevertheless, if a customer holds an RFCD account, they can withdraw up to $5,000 in cash from this account when travelling abroad. 

Furthermore, customers can use the debit card linked to their RFCD account to withdraw the local currency of the country they are visiting from ATMs or to make payments.

Presently, this account facilitates spending in dollars, euros, and pounds. However, we plan to expand its functionality to include Australian, Canadian, and Singaporean dollars over time. 

This account proves highly beneficial for individuals who frequently travel abroad, particularly for parents with children studying or someone receiving medical treatment overseas.

Typically, there is a limit of $300 for e-commerce transactions using a credit card abroad. However, with the debit card linked to this account, payments of $2,000-3,000 can be made through any e-commerce platform. Essentially, the balance in this account belongs entirely to customers who have full control over how it is spent.

What are the benefits of this card?

According to the central bank policy, acquiring a debit card is feasible through an RFCD account. Additionally, two extra subsidiary cards can be issued in connection with the primary card. For example, if customers have children studying abroad, they can furnish them with a card. Through this card, expenditure notifications will be sent directly to the customer's phone for monitoring.

Moreover, in the event of an urgent need to send money for medical treatment, customers can promptly transfer dollars from their account to another overseas account.