Friday May 24, 2013

FREQUENTLY ASKED QUESTIONS

DEPOSIT SERVICES

How secure is my deposit? Are deposits insured?
MF&G Trust and Finance Limited is a member of the Jamaica Deposit Insurance Scheme and as such all depositors’ funds are insured up to a maximum of J$300,000.00. Additionally, the philosophy and culture of MF&G Trust and Finance Limited are based on strong internal controls and the protection of client funds.

 

What is a Certificate of Deposit?
A Certificate of Deposit (CD) is a certificate issued by a bank that indicates a specific sum of money has been deposited at the bank. A CD bears a maturity date and a specific interest rate. CD’s are insured by the Jamaica Deposit Insurance Corporation and are issued, subject to a minimum period of 14 days.

 

Does MF&G Trust and Finance offer competitive interest rates?
Our rates are benchmarked to the Central Bank’s reverse repo rates which generally reflect the market expectations on interest rates.

 

Do I have to pay Withholding Tax?
Under Jamaica’s income tax laws, all income earned from fixed income transactions are subject to with-holding tax @ 25% unless exempted by the Minister of Finance. These exemptions would include deposits placed on “366 days accounts”. In addition, investors from countries with a double taxation treaty with Jamaica pay a lower rate. For example, United States – 12.5%; United Kingdom – 12.5%; Canada – 15%. Pensioners are exempted up to a certain amount.

 

Do you report my transaction to the Income Tax department?
Under Jamaica’s banking laws a banker/client relationship is confidential and as such information on client’s accounts is not reported to the tax authorities. However, taxes withheld from client’s interest are paid over to the tax authorities as a global sum.

 

What is a ‘366 day’ deposit account?
This is a fixed deposit offered to clients in a foreign currency (usually US Dollar or Sterling). The deposit is called “366” since a precondition is for a minimum deposit period of 366 days. The funds must originate from outside Jamaica and the account holder must reside abroad. The attractiveness to the depositor is that the interest earned is exempt from tax. In addition, the funds are not subject to reserve requirements thus making them relatively cheaper than a regular CD issued by the bank.

 

Who is your supervisory authority?
The company is subjected to detailed monitoring and to operational audits by the Bank of Jamaica, and must conform with the range of financial ratios, constraints and other rules provided by the Financial Institutions Act and regulations there under – as well as to the required timetable of statutory and other periodic returns. The company’s operation is also regulated by the Jamaica Deposit Insurance Act and all other regulations governing the operation of local financial institutions.

 

CREDIT SERVICES

What types of credit facility do you offer?
T&F offers various credit facilities, however the following solutions may be extended based on our client’s needs:

 

Do you offer US$ denominated loans?
Yes, credit facilities may be extended in US$, however these may be subject to special conditions.

 

What are your lending rates?
Highly competitive lending rates are offered. Please contact our representatives for details.

 

What type of security is required?
The following assets may be pledged as security for credit facilities:

 

What repayment periods are available?
Repayment periods may vary from 1 - 5 years depending on the client’s needs and the credit risk involved.

 

What are the benefits of lease financing to the lessee?

 

How does one apply for a credit facility?
E-mail us at mfgtrustfin@cwjamaica.com
Contact our Credit Representatives at (876) 922-5860-8

 

What do I need to provide when opening an account with MF&G Trust & Finance Limited?

Individual/Joint Accounts

Corporate Accounts

 

MF&G Trust & Finance Ltd will provide you with our documentation, to be signed by all account holders/signatories.