Bank services

1.
Will standing payment orders in EEK remain valid after the euro adoption (i.e. will these be automatically converted to euro) or should new contracts be concluded with banks?
2.
How is the euro adoption going to affect the current limits on card transaction and Internet banking ?
3.
If I have a housing loan in kroons, will my liabilities be converted to euro at the central rate or can the bank use a commercial rate and what will happen to the previously agreed bases used for the calculation of interest on housing loan in kroons.
4.
If I have a fixed-term kroon deposit contract and the maturity of the deposit exceeds the €-day, will the contract still be valid and will the bank be obliged to pay the agreed interest on the deposit?
5.
Will the banks exchange kroon coins free of charge in an unlimited amount? How can I transfer kroon coins into my bank account?


Answers

Will standing payment orders in EEK remain valid after the euro adoption (i.e. will these be automatically converted to euro) or should new contracts be concluded with banks?
Answer:
There is no need to conclude new contracts. Banks convert pre-sent and contractual payments to euro before making the payment at the central rate (1 euro = 15.6466 kroons). All the amounts and limits of the standing payment orders and direct debits will be converted to euro automatically and without a service fee. From the € day, kroons in bank accounts will be shown in euro and no kroon payments can be made. All the transfers and payments will be in euro.
How is the euro adoption going to affect the current limits on card transaction and Internet banking ?
Answer:
All banking services will be euro-based from the €-day at the latest. Existing contracts need not be altered. The established limits on cards will remain effective and their value will be automatically calculated into euro at the conversion rate (1 euro=15.6466 Estonian kroons). The limits are established in respective contracts between the bank and its customers. These contracts cannot be altered unilaterally. Thus, if your credit card limit is currently 10,000 kroons, it will be 639.12 euro after the €-day. If you wish to have a rounded-off limit, you will have to contact your bank. The final balance of the account in kroons and the opening balance of the account in euro are shown in bank statements.
If I have a housing loan in kroons, will my liabilities be converted to euro at the central rate or can the bank use a commercial rate and what will happen to the previously agreed bases used for the calculation of interest on housing loan in kroons.
Answer:
The bank will convert the loan automatically to euro. The interest rate and all other terms and conditions will not be changed, so there is no need to alter the loan contract. Certain rules are followed in the calculation of the loan amount into euro: conversion is carried out only at the conversion rate and rounding off is performed with one euro cent accuracy. After the €-day, the bank will prepare new repayment schedules in euro.
If I have a fixed-term kroon deposit contract and the maturity of the deposit exceeds the €-day, will the contract still be valid and will the bank be obliged to pay the agreed interest on the deposit?
Answer:
The adoption of the euro will neither change the terms and conditions of any legal document (incl. contracts) and exempt any of the parties from the performance of their obligations, nor entitle any of the parties to unilaterally alter or terminate the valid document. The bank will automatically convert all the kroon deposits to euro without a service fee. The terms and conditions of the deposit (interest rate, maturity) will not change and the contracts do not need to be altered. By making regular contributions into the savings deposit, you do not need to change your standing order, it will be automatically switched to the euro. Thus, your fixed-term deposit contract will be valid under the same conditions until the expiry of the term.
Will the banks exchange kroon coins free of charge in an unlimited amount? How can I transfer kroon coins into my bank account?
Answer:
The Banking Association in cooperation with commercial banks and Eesti Pank launched in October 2010 a coin collection campaign during which people were invited to take their kroon coins to their bank. During the campaign, banks accepted coins and transferred them into their customers’ bank accounts free of charge. Further information is available on the website of the Banking Association It is also now possible to take kroon coins to the bank and exchange them for euro cash or deposit them into your bank account.