Deposit rate in Kazakhstan is reviewed monthly. Kazakhstan Deposit insurance Fund has introduced a new maximum recommended interest rates on Bank deposits.
At the beginning of each month is information about the future amount (at the beginning of October – about the changes in November) that allows you to schedule when and for how long to put money in the Bank. And what actually to choose.
But it is important to remember:
increasing the maximum recommended rates does not mean that banks will increase the interest on deposits
– they only get the opportunity to do so if deemed necessary.
Savings deposits: remuneration falls
KDIF encourages Kazakh banks in November to reduce the maximum rate on savings deposits. It is calculated according to the formula “weighted average market interest rate plus the spread”. That is, in the opinion of the KDIF, Kazakhstan is ready to hold funds in savings deposits and less profitable than now, conditions.
Significantly reduced the size of the maximum recommended interest rates on deposits of 6 months – from 0.6 p. p. in addition, when opening the Deposit in November, you should pay attention to the following points:
- It is most advantageous to open a Deposit account for 24 months without the possibility of replenishment. Here the highest maximum recommended rate is 13.9%.
- If a Deposit is not planned, the most profitable option – placing a period of six months (the maximum amount of compensation to 12.7% per annum).
- When opening the Deposit for 3 or 6 months there is no difference whether there is replenishment or not – the maximum rates are the same. For longer placement the difference is significant at 0.9% (at 12 months) and 1.9% (at 24 months).
- Even the most unprofitable of savings Deposit gives more income than the best urgent or non-urgent.
- The interest on three-month deposits without replenishment higher than that of two-year deposits with replenishment (12,4% vs 12%).
Term deposits: the yield may increase
Along with the reduction of interest on savings deposits is expected to increase the remuneration on term. According to the methodology KDIF, it means that the changed market trends. That is, banks began to attract customers higher interest.
According to the Association of financiers of Kazakhstan, in August, increased rates on time and savings deposits (in the range of 0.1-1.0%), Halyk Bank, Bank CenterCredit, ATF, Eurasian, RBK Bank, Nurbank, Altyn Bank and Bank Tengri.
“The most popular among the term deposits became deposits with the right of replenishment for 12 months. The maximum recommended rate for November and 10.8% per annum”, — noted in KDIF.
The recommended increase in rates affected all Deposit periods. Hardest (by 1.5%) could increase the reward for six-month deposits. For all other terms the rise is from 0.1% to 0.9%. This means that:
- The best term Deposit in October – 12 monthly (to 11.2%). In November may appear at least three more favorable accommodation
- If plans to Deposit no, the best offer is a contribution for 24 months (to 11.9%).
- If in October the most profitable allocation of deposits without replenishment – per annum (to 10.7%) in October – a period of 6 months (to 11.6%).
Option “6 months with the addition of” even more profitable 12 months without replenishment (November-maximum rate it will amount to 11.3%).
Non-urgent and the currency: no change
As for other types of deposits, then the maximum recommended rates depend on the size of the base. So after the last increase in September while no changes. For non-urgent deposits the recommended maximum amount of remuneration remains at the level of 9,8% per annum. According to the AFC, in September has raised interest rates up to a maximum recommended people’s Bank, SB Sberbank, BCC, ATF, Nurbank and VTB Kazakhstan.
There is no change on foreign currency deposits. The maximum recommended interest rates on deposits in foreign currency account:
- 2% interest on savings and term deposits in foreign currency of one year;
- 1% per annum of the remaining deposits in foreign currency.