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Maximal remuneration rates for physical entities deposits up in Kazakhstan

Finance Materials 6 November 2019 13:40 (UTC +04:00)

BAKU, Azerbaijan, Nov. 6

By Nargiz Sadikhova - Trend:

Kazakhstan Deposit Insurance Fund JSC has announced an increase of the maximal recommended remuneration rates for all types of physical entities deposits for the period from December 1 through December 31 this year, Trend reports with reference to the press office of the fund.

According to the information, the increase of the remuneration rates will be especially noticeable on savings deposits placed for the period of over one year: depending on the term of the deposit placement, banks can accept savings deposits with replenishment allowance under the remuneration rate of 12.7 – 12.9 percent, whereas the deposits with no replenishment allowance can be accepted under remuneration rate of 14 – 14.6 percent.

Currently, the savings deposits placed for the period from three months to three years are available in 15 banks of Kazakhstan. The most demanded are savings deposits for the period of a year or more without replenishment allowance, some 85 percent of the total deposits value accounts for which. Since the beginning of the year, the volume of savings deposits in Kazakhstan increased by over eight times (716 percent).

As noted in the information, country’s banking sector is deepening competitiveness in area of savings deposits and the change of the maximal recommended remuneration rates for other types of deposits will be insignificant. The maximal recommended remuneration rate for time deposits placed for a year and over with replenishment allowance will be increased by 0.1 percent and will be 10.9 percent. The maximal remuneration rate for non-term deposits will not change in December and will be 9.8 percent.

New deposits classification has been introduced in Kazakhstan in 2018, which differentiates savings, time and non-term deposits. Non-term deposit is a deposit the term of the agreement which does not limit the depositor to use the money at any time without loss of remuneration.

Time deposit allows gaining higher yield compared to non-term, whereas the savings deposit is the most profitable of them all. Increased remuneration rate is a compensation for withdrawal of money before the agreed term.

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