Banks can reduce rates on deposits

Another change of the maximum recommended rates were the most negative in recent times.

Since August 2019 KDIF 13 times the parameters are changed, and the third time his recommendations do not include the increase. Moreover,

of the 18 types of deposits immediately at 14 was a reduction in the maximum recommended interest rates

It is quite strong: for a number so low interest rates not seen since at least August 2019. Among them:

term deposits:

  • 12 months from completion (a maximum in July at 10.4%, -0,1 p. p. to June) and no increase (11.1 per cent — 0.1 percentage points)
  • 24 months without replenishment (10,8%, — 0.3 p. p.)
  • 6 months from completion (10%, — 1 p. p.)

savings deposits:

  • 3 months from completion (11%, -1 PP) and without (11.5%, — 1 p. p.)
  • 6 months from completion (11%, -1 PP) and without (11.5%, — 1 p. p.)

In addition,

maximum interest on three-month deposits declined to the level of October 2019 – 10%

Back in may, the ceiling was at 13%. 1 PP decreased and maximums for term deposits from 11% to 10% (late may – 12,5%).

“In accordance with a decision taken on the gradual decline in interest rates on short-term deposits, KDIF is 1 percentage point reduces the spread to the base rate.

Thus, gradually decreased the gap between the current base rate at 9.5% and previously approved rates for deposits of physical persons”, — explained in KDIF.

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The difference in rates of almost 5%

The only types of deposits, the maximum recommended rate on which is not reduced, that savings deposits at 12 and 24 months regardless of the possibility of replenishment.

These are the deposits, which not allowed the partial early withdrawal – only complete. In case of early withdrawal, the Bank will reduce accrued interest up to 0.1% per annum or lower, and the money can be issued no earlier than 30 days.

In July the maximum rates remain at the June level. That is an increase of 14.9%, if we abandon the possibility of replenishment, and 12.8 to 12.9%, if you leave the opportunity.

“Maximum recommended rate on time and savings deposits at 12 and 24 months are calculated based on the weighted average of interest rates for which they were engaged” — reminiscent of the KDIF.

Ppoluchaetsya interesting picture. The decrease in the maximum rates on term deposits says that Kazakhstan is ready to bear money in banks, and a smaller allowed percentage.

And stable conditions for savings deposits, by contrast, indicate that the population is not ready to trust their money to banks for a year or two without the ability to remove them early.

As a result: the difference in interest rates between the time and savings deposits at the same time and with the same terms of now is from 2.4 to 4.1%. This big difference was not.

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Things to remember when opening a Deposit?

  • Banks can and do renegotiate the terms on its deposits, and so if they fall under future limitations. In any case, it is only on the new deposits on the existing changes do not apply
  • Great deposits and savings, a period of at least a year. Ceiling for him in July will be from 12.8 to 14.9%, remaining at the level of June
  • Interest on term deposits (where at any time you can withdraw your funds from the Deposit) will fall for the fourth time in a row. Now the limit is 10%. Many can also offer over term deposits for 3, 6 or 24 months from completion. All this is most disadvantageous (albeit the most convenient) options of placement of funds.
  • The ceiling on any saving Deposit is higher than for urgent or non-urgent.
  • Any term or savings Deposit profitable, if we abandon the possibility of its replenishment. The difference in percentage can range from 0.5 to 2.1%
  • Even the worst options on deposits is expected to produce income. Interest rates are higher than the level implied inflation at 9-11%.

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