Kazakhstan Deposit insurance Fund has updated the maximum recommended interest rates on deposits in December.
Major changes in recommendations related to savings deposits. Under the terms they have no partial early withdrawal — only complete. And, in case of early closing of Deposit investors practically do not get profit. Banks such practice gives confidence that there will be no sudden withdrawal of large funds.
Plus for patient investors — the highest percentage of remuneration
KDIF has announced that since December, the maximum permitted interest rates on savings deposits will rise by 0.3% to 0.9% depending on the time of Deposit. That is, banks can accept savings deposits with replenishment at an interest rate of 12,7-12,9%%, without Deposit — 14-14.6 per cent.
“Getting the guarantee of a high income, you and your party undertake to keep money in the Bank before the deadline. So to make a decision on savings Deposit must be consciously”, — said Chairman of the Kazakhstan Deposit insurance Fund Akilian Baymagambetov.
Whether to choose savings deposits?
The volume of offered savings deposits since the beginning of the year increased more than 8 times, and 85% of all such deposits opened for a year or more without replenishment – here the most favorable conditions of all. The average Deposit, according to the KDIF, is 2.8 million tenge. But opening a savings Deposit it is important to remember that:
- It is suitable for those who are sure that you will not use the money at the time of the Deposit. Due to the high interest can quickly cumulate into a major purchase.
- KDIF guarantee on savings deposits is the highest for 15 million tenge
- When placing a Deposit for a period of not more than one year there is no difference, there is a possibility of replenishment or not maximum recommended rates are the same. But when you open a Deposit for 2 years the difference amounts to 1.9% of
- If there is a need in the opening of savings deposits with replenishment, it is better to choose a term of 6 months – then the highest recommended rate. It is 0.7% more than the annual contributions, and 0.9 percent — than two years.
- Open a savings contribution is not possible everywhere: such services are offered by 15 of the 27 banks in the Republic of
It is important to recall that the increase in the maximum recommended rate only applies to newly attracted deposits. Moreover, banks are not obliged to raise interest rates. However, KDIF believe that it is possible to expect growth of interest rates on deposits
“Competition for savings deposits as a development resource is high. Under these conditions, the same high interest rates and can offer stable banks, less stable. Therefore, the rate at which the Bank attracts savings deposits, becomes an important indicator for investors”, — said Akilian Baymagambetov
Where to invest if the money will be needed?
For Kazakhstan the most common form of deposits deposits remain non-urgent. That is, the depositor can withdraw money at any time without loss of remuneration. However, the interest here is the lowest, since the maximum recommended interest rate on term deposits is calculated on the basis of the base rate of the national Bank. In October, the regulator did not change it (leaving the level of 9.25%), and therefore the greatest possible interest has not changed: as in November, they is 9.8%
The third type of deposits – term deposits. Is allowed partial or full early withdrawal of money on Deposit with a decrease in remuneration. So the percentages here are higher than term deposits, but less than in savings. Since December, the maximum recommended interest rates on deposits for a year or more will increase. However slightly – just 0.1%. However, the maximum rates for six-month deposits, which have become almost the best in November, will decline from 1.3%.
Thus it is necessary to pay attention to the following points:
- When placing a Deposit for a period of not more than one year there is no difference whether the replenishment or not maximum recommended rates are the same. But when opening the Deposit in 2 years, the difference is 1.1%
- Guarantee KDIF for urgent and non-urgent deposits is 10 million tenge
- Even the most unprofitable contribution that brings the real income. Inflation in the country is much lower than Bank interest
- In General, rates on term deposits are falling as banks prefer to attract clients on savings projects. Before September 1, the difference in maximum recommended rates savings and term deposits was 1%. In December – 1.8% (two years from completion) to 3.3% (for 6 months with replenishment and without it)