Banks in Kazakhstan are not entitled to unilaterally revise the interest rate on existing deposit agreements, even after a cut in the base rate. National Bank Chairman Timur Suleimenov said this at a briefing at the National Bank in response to a correspondent's question, infohub.kz reports.
"That is a good answer — no, it stays. That is, it stays for the period for which the deposit agreement was signed. If your deposit agreement was signed for a year, then the rate will be for a year, and the bank has no right to revise it unilaterally. If you signed at 20% in July, you will have 20% until July 2027," Timur Suleimenov said.
He added that deposits come in term and savings types. Term deposits have a term of 3–6 months, because the bank does not want to lock itself in for long at a base rate that changes.
"But there is another class of deposits — savings deposits. You cannot withdraw from them, but in exchange for letting the bank use your money for a long period, it gives you additional returns. So, taking this opportunity, if you want longer and higher rates, look at an instrument such as savings deposits — there are 12, 18 and 24 months. They usually offer higher rates," Suleimenov added.
It was reported earlier why the National Bank continues to cut the base rate in Kazakhstan.