Starting from the beginning of July, the maximum rates on deposits in national and foreign currencies will be reduced, Trend reports with reference to Azerbaijan Deposit Insurance Fund (ADIF).
However, those who have deposits in banks placed at higher interest rates shouldn’t be worried. The new rules won’t be applied to their deposits until the contract period between them and the banks expires.
From July 1, the maximum interest rate on insured deposits in manats will be 10 percent, against the current 15 percent. This is while for insured deposits in foreign currency the maximum interest rate will be 2.5 percent. Before it was at 3 percent.
The decision was made by the supervisory board of the ADIF in consultation with the Financial Market Supervisory Authority of Azerbaijan (FIMSA) and the Central Bank of Azerbaijan.
If after July 1 the deposits are placed at higher interest rates that exceed the maximum rate determined by the ADIF, these deposits won’t be insured, and no compensations will be paid for them.
Follow us on Twitter @AzerNewsAz