When choosing a bank for savings deposits, depositors evaluate several important factors: primarily, they choose a reliable bank and high interest rates.
According to the National Bank, in October 2023, the average annual interest rate for term and savings deposits on the market was 14%. As of November 1 of this year, deposits of individuals in Kazakh banks reached 18.7 trillion tenge. Compared to the same period in 2022, retail deposits increased by 24%. Currency deposits of the population decreased by 493.3 billion tenge over the first 10 months of 2023. Today, Nur Bank offers depositors advantageous conditions for opening deposits. When opening a savings deposit in the bank for one year, the annual effective interest rate (AEIR) will be 15.7%, and for six months, 17.5%. Gulnara Musataeva, Chairman of the Board of JSC Nur Bank, shared more insights into the developments in the individual deposit market.
— What trends would you highlight in the deposit market?
— If we talk about the market, we see that the volume of retail deposits is growing. The increase in the base rate last year and, consequently, the increase in deposit rates have largely stimulated the influx of deposits from the population.
The share of foreign currency deposits continues to decline due to the relative stability of the US dollar exchange rate and their low interest rates.
As of November 1, 2023, the volume of the deposit portfolio of individuals at Nur Bank amounted to 145.1 billion tenge. Retail deposits account for 45% of our deposit portfolio.
When choosing a bank for savings deposits, depositors consider a number of important factors: first and foremost, they select a reliable bank. Nur Bank has been operating in the market for over 30 years, and the bank's policy has consistently focused on ensuring stability and sustainability.
— Nur Bank offers several deposits; all are designed for different purposes. What is the specificity of a savings deposit?
— Today, we offer competitive rates for deposit products. At Nur Bank, you can open a savings deposit with an increased rate - up to 17.5% AEIR, provided that the savings are kept for six months. This deposit allows you to achieve maximum returns over a short period. Additionally, the guarantee amount for it is 20 million tenge. The peculiarity of the savings deposit is that funds cannot be withdrawn early without losing interest. We all know that saving with the possibility of partial withdrawals is difficult; there is a constant need for one unplanned purchase or another, and the deposit amount begins to decrease rapidly. A savings deposit won't allow that, and your savings goal will be achieved.
We have two types of savings deposits: with and without the possibility of replenishment. "Nur Altyn Optimal" is a versatile deposit product that allows replenishment and partial withdrawal within the minimum balance without losing interest.
The AQYL educational deposit is a unique deposit product whose interest rate is subsidized by the state to simplify the accumulation process for educational payments. This type of deposit allows saving money for children's education while earning rewards from both the bank and the state. It has a high yield in the deposit market.
— Can we say that now Kazakhstani people are more likely to open savings deposits?
— We observe a positive trend: more and more citizens of our country understand the importance of having savings. Since the beginning of the year, savings deposits of the population in second-tier banks have been growing. This indicates increased financial literacy and a desire to create a financial cushion. Undoubtedly, the high base rate has influenced this. For example, in our bank, tenge deposits are mainly opened for short terms with flexible deposit conditions.
— Only a few banks on the market offer the AQYL educational deposit, where the state provides an additional 5-7% yield… Why is this deposit more beneficial for those saving for education?
— Indeed, at the moment, only a few second-tier banks offer the AQYL educational deposit. For instance, in our bank, the deposit yield can be up to 20% (AEIR): the interest rate is increased to 15% (AEIR), and alongside the bank's reward, a 5% annual premium is accrued on this deposit. For a certain category of depositors, the state premium is higher - 7% per annum. Moreover, the state premium is accrued on the funds accumulated by the depositor, including the banking interest.
The minimum initial deposit for opening an educational savings deposit is 3 monthly calculation indicators (MCI). The funds in the AQYL deposit can only be used for educational payments. The advantage of the educational deposit is that the funds placed on it cannot be seized or subject to other claims. Deposits up to 10 million tenge are insured by the Kazakhstan Deposit Insurance Fund.
I want to note, today, when the world is changing rapidly, education is the foundation for a successful future, so many of our clients open deposits for additional education or professional development courses for themselves.
— Can the funds accumulated in the AQYL deposit also be used for college tuition?
— Yes, depositors are not limited in their choice of an educational institution. Savings in AQYL deposits can be directed towards tuition payments in universities and colleges, for obtaining vocational-technical education, bachelor's, and master's degrees. If a child is admitted on a scholarship, the depositor has the right to withdraw all funds from the account along with the bank's reward and the state premium. They can also transfer the money to another child's educational deposit or continue saving for further education.