Interest rate on deposits
The attraction of cash resources for a deposit is realized on the basis of a specific interest rate, the size of which is carried out according to a certain formula, which takes into account the amount of investments, as well as the terms of placement. The deposit agreement shall indicate all items regarding the calculation and payment of interest, as well as the size of the interest rate. Percentage should encourage customers to long-term storage of money in organized forms. Deposits on deposits can be in Ukrainian currency and in dollars.
Recently, competition for attracting free cash capital of people between commercial banks and a savings bank has intensified. When a person thinks about putting money on a deposit, he chooses a bank based on the following points: reliability of the organization, quality of service and interest rate. There is a pattern in Ukrainian banking practice: the more reliable a bank is considered, the less its management thinks about offering people high rates. And little-known, small banks and organizations are doing their best to gain the trust of people and provide attractive interest rates on deposits.
You should be aware that interest on the deposit is paid: as soon as the deposit is paid off; periodically; in advance. If the depositor withdraws his savings from the term deposit and does not re-deposit them for a long time, the interest rate is reduced.
In accordance with Ukrainian law, all income from deposit operations is taxed.
Interest rates on deposits should guarantee the bank maximum profit at the least risk. The interest rate on deposits in Ukraine must be higher than the inflation rate, but as practice shows, in our country, the percentage that banks give is often lower than the inflation rate. Because of this situation, people are distrustful of Ukrainian commercial banks.
Absolutely all commercial banks, when changing the NBU discount rate, are obliged to change interest rates on deposits. When such institutions complete the internal deposit portfolio, they should take into account the norms of reserve requirements of the NBU. Their policy should be guided by efficiency, optimality, adequacy, and should also take into account the interests of their own and those of their investors.
Profitable deposits: open a deposit in the Credit Union “ZaRaZ”