Bank deposits remain the most reliable financial instrument. As of September 1, the deposits of the population in Kazakhstan's banks amounted to 22.2 trillion tenge — 1.3% more than the previous month. In monetary terms, household deposits increased by 286.1 billion tenge over the month. The population of the country chooses tenge deposits despite significant fluctuations in the exchange rate. This indicates increasing trust in the national currency despite current events in the financial markets. It is generally believed that the longer the deposit term, the more income it generates for its owner. However, at present, the market is seeing a reverse trend. Nurbank's Chairwoman Gulnara Musataeva explains what's happening in the deposit market and which deposit to choose for profitable investments.
- In your opinion, what is the reason for the growth in the number of depositors?
- The growth in the number of retail depositors is largely due to the increased accessibility of banking services, partly thanks to modern technology. The statistics from the National Bank of Kazakhstan show a reduction in cash circulation and an increase in cashless transactions in the daily lives of the population; the country's payment market continues to actively develop. More people are using banking applications for online transactions and transferring surplus funds to current accounts and personal deposits.
We are confident that the trend toward digitization of deposit products and services will continue. The popularity of online deposits offering increased rates and flexible deposit management through mobile banking applications is expected to grow. Banks will actively develop innovative deposit products integrated with other financial instruments, such as hybrid savings-investment solutions, allowing clients to optimize returns while maintaining low risk levels.
- Tell us about the interest rates
As of September 1 of the current year, the average weighted reward rate for term deposits of non-bank legal entities in tenge is 13.1%, while deposits of individuals in tenge are 13.5%. There have been no significant changes compared to August. Nurbank's deposit rates are consistent with the market, and the average rate for individuals is 14.54%. Overall, current deposit rates are very attractive. We anticipate a gradual reduction in the base rate, so now is a good time to open a deposit at a high rate. Many banks are already revising their deposit conditions.
- How advantageous are 'short-term deposits'? And what reward rates does Nurbank offer?
- The choice of deposit type, of course, depends on the retail client’s financial goals. We currently offer to place temporarily free funds into the “Nur Altyn Savings” deposit, which can be opened with a rate of up to 17.5% APY, provided the savings are maintained for three months. It has an increased KDIF guarantee up to 20 million tenge. This deposit makes it easy to save for a purchase.
Besides the savings deposit, we offer retail clients the “Nur Altyn Optimal” deposit. This is a universal deposit product that allows for top-ups or partial withdrawals within the minimum balance limit. This deposit can be opened in three currencies – tenge, euros, and U.S. dollars, where the minimum amount to open a deposit is 5000 tenge or 25 dollars/euro. Capitalization without withdrawal is possible, either receiving the interest into a current account monthly or adding it to the deposit amount, thereby increasing future accruals.
At Nurbank, you can open an educational deposit “AGYL” for 36 or 60 months. This is a unique banking product that allows saving for children's education while receiving rewards from both the bank and the government. The deposit provides a government bonus to the bank’s standard rate: standard (+5% per annum) and special (+7% per annum).
The “AGYL” deposit is primarily of interest to parents who want to save for their children's education. Another category of depositors who might find “AGYL” attractive is working young people with an average income, planning to obtain a second higher education degree, or pursuing a master's or doctorate. The product can also be of interest to companies implementing corporate social programs for their employees as a motivational element. Saved contributions in the “AGYL” deposit can be spent on obtaining not just higher education but also vocational-technical education, completing a master's degree, and even language courses.
The initial minimum one-time contribution for opening an educational savings deposit is three times the monthly calculation index set for the relevant financial year by the law on the republican budget. In 2024, the minimum initial contribution is 11,076 tenge.
Another very interesting retail product worth mentioning is the Loan against Deposit. If you have funds deposited, which you do not want to use, as they are intended for long-term plans, and you suddenly need money, in Nurbank you can obtain a consumer loan at 3% added to the deposit/reward rate. The loan amount is up to 90% of the amount in the savings account. Thus, you can repay the loan with minimal overpayment. The Loan against Deposit is issued in tenge, and savings both in tenge and U.S. dollars can serve as collateral, in the case of funds pledged – only in tenge.
- What products are of interest to SME and corporate business representatives?
Today, Nurbank offers corporate clients and SME representatives a range of deposit products. For this category of clients, the “Convenient” and “Optimal” deposits are in demand. For corporate business, they account for more than 70% of the total deposit portfolio of corporate clients, due to the ability to withdraw and replenish at any time with a minimum non-reducible balance. If a client needs funds, they can freely withdraw from the savings account, and if there is a surplus, they can always replenish the deposit to generate additional interest income. There are several tiers for placement: short-term, up to 1 year, and long-term, with a placement term of more than one year. The main advantages of these deposits are high interest rates; the ability to replenish the deposit at any time without restrictions; the ability to withdraw required amounts; convenient terms. The short-term deposit – “Nur-Komfort”, which allows the placement of funds for several days, is gaining increasing popularity. This product allows clients to quickly receive additional income when they have free funds on their accounts.
- Why do you believe deposits remain one of the attractive tools for savings for corporate clients?
Today, deposits are not only a simple and accessible banking product for retail clients, but also an attractive investment tool for SME and corporate business representatives. There are various reasons for this. Foremost, deposit products provide an optimal balance of risk and return under financial market volatility. The current deposit yields exceed inflation rates, allowing to not just maintain but grow capital.
An important factor in the attractiveness of deposits is their role in establishing and developing long-term partnerships between the bank and the corporate client. Large volumes of funds placed on deposits often come with tailored bank conditions on other banking products and services, such as loans, cash management, or currency operations. This creates a synergistic effect, allowing the company to optimize financial flows and reduce overall banking service costs. Furthermore, banks often offer personalized terms in their corporate deposit services, considering the client's business specifics, financial needs, and development plans, which further enhance the attractiveness of this tool. Additionally, the bank provides flexible early withdrawal conditions with minimal yield losses, significantly increasing the attractiveness for corporate clients.
- What trends in the segment of corporate deposits can be observed next year?
In the corporate deposit segment, increased competition is expected among banks for attracting funds from large enterprises and government organizations. This may lead to more individualized deposit products that account for specific corporate client needs in liquidity management and treasury operations. There might be an increase in offerings of deposits with floating rates, tied to the base rate of the National Bank or other market indicators, enabling corporate clients to manage interest rate risks more effectively.
Source: https://dknews.kz/ru/finansy/344293-nadezhnost-i-vysokiy-dohod-depozity-nurbanka