Renat Shakirov, Avers Bank: ‘It is wrong to deposit just because a bank offers a high rate’

To withdraw money without loss

Renat Asgatovich, the population maintains the interest in deposits while the situation in the economy is not very stable. However, lately, due to the decrease in lending rates, the deposit attraction volume in Russia is being reduced. How, in these circumstances, has the Avers Bank managed to maintain and even increase the deposit portfolio of natural persons?

Deposits of natural persons — a product that every bank has in its lineup. But we, in the development of a new deposit line in November of 2015, changed the traditional concept of this product. We want our customers considered a deposit as a financial instrument.

Our deposit Svoboda (Freedom) with a period of storage of 90 days offers not only to deposit money but also to manage them. We can say that its name itself reflects its philosophy. Not every bank deposit allows to withdraw funds pre-schedule without loss of interest, since the goal of attracting deposits for the banks is to generate income and to use it in retail or corporate business. Most often, a bank then gives loans at these borrowed funds. Our bank offers its clients a unique service – to deposit and withdraw their funds when it is convenient for them. The minimum amount of the initial deposit for Svoboda deposit is 10 thousand rubles, the minimum deposit amount is 10 thousand rubles. Debit transactions are allowed during the entire period of storage until the minimum deposit amount. That is, if the minimum balance is maintained, the rate is kept at 8% per annum, even if a part of the funds is withdrawn beforehand. Interest is accrued monthly and transferred to a card or current account. The prolongation is done once – on the terms of the deposit on the date of prolongation. At the end of a storage period and a prolonged period of storage, the entire amount of the deposit transferred to the current account of a client. At the request of a depositor, he additionally can be issued a MAESTRO card for transfers of interest on the deposit.

Who will appreciate the opportunity of early withdrawal without loss first of all?

It will be appreciated by the customers who is planning to purchase housing under the mortgage. They have a certain amount of money that they can not keep for a long time, as they might need it at any time. They need deposit for a short period.

Also, this deposit will be attractive for active investors. When it comes to the 'profile of a depositor', almost all banks talk about people over 40-45 who are prone to savings. But many banks leave 'overboard' of its attention the active segment of the population. We are expanding the boundaries and we want to see among our clients people over 25, who are ready to manage their finances, can deposit them for a short period of time and to direct on specific business objectives. This deposit with non-standard terms has been created especially for them. We can say that this is our thing.

We want our customers looked at this deposit as a financial tool

What if a person has spare funds and is willing to place them in the bank for a longer period at a higher interest rate on the deposit?

For them – the deposit Harmony, a medium-term deposit with a period of 180 days. It demonstrates the balance between return and mobility. The interest rate is 8.25% per annum. The minimum amount of initial deposit is 10 thousand rubles. This deposit is designed for secure savings storage with the possibility to withdraw the funds without loss of interest prior to the expiration of the term. Added interest is added to the deposit amount, increasing the income in the following periods.

The experts predict that rates on deposits will continue to decline with the reduction in inflation and reduction in the key rate of the Bank of Russia. How in these conditions is it possible to fix the interest rate of the deposit and to obtain the maximum revenue?

Our classic deposit Tradition is designed for long-term savings. The interest rate — 8.5% per annum. The minimum amount of initial deposit – 10 thousand rubles. This deposit is designed to secure savings and to get a guaranteed stable income. The deposit is opened for 367 days and the interest rate is fixed for the whole period of storage. At the end of the term of the contract you will receive the deposit amount with interest. This deposit is attractive for people with accumulated capital who seek to ensure its safety and steady real income.

According to your predictions, when can we expect another reduction of interest rates on deposits?

Rosstat for the first time in five years has recorded in Russia a week-long deflation: in seven days, from 26 July to 1 August, prices fell by 0.1%. This suggests that the policy of the Central Bank is bearing fruit and the goal is to ensure that inflation would not grow rapidly, it is achievable. What does this mean for ordinary people? In September, we expect changes in the key rate to decrease. The cost of attracting resources, that is, deposit rates will continue to decline. Once again it will happen in September. Therefore, the validity of our deposits in the current conditions — until 31 August.

Reliable deposit

Often when choosing a bank for investment of funds on deposit people are guided only by an interest rate on the deposit. What other factors should be taken into account?

It is wrong to go to a bank to make a deposit just because it offers higher rate. It is necessary to consider other factors too. You should remember that the policy of the Central Bank on toughening of requirements to credit institutions is ongoing. Some investors think that if the amount of their deposit does not exceed the amount of insurance coverage than they had nothing to fear even if the bank will lose the license. But it doesn't stop there. The return of funds may take up to six months and don't forget that you'll get them back only if the bank is a participant of deposit insurance system. Besides, funds in the account will be 'frozen' and you will get back only the deposit amount, without interest, not exceeding the coverage amount of 1 400 000 rubles.

Also when choosing a bank to deposit it is necessary to compare the rates on the deposit with interest rates on credit products. If a bank feels confident, it can afford low margins on loans. High yield credit products — it is high-risk products. If the loan has a high interest rate, a loan is issued under a more risky segment of clients. If a bank has good financial stability, it tries to minimize risks and attract higher-quality contingent of borrowers. This is reflected in interest rates as well. They become more attractive. Today, the Avers Bank offers a truly one of the best lending terms in the market. We work only with reliable clients who have a guaranteed source of income and work at the official enterprises. In fact, the bank has no loans without proof of income. Avers's aim is not 'vacuum' the market of deposits. We want to attract a good targeted audience.

Avers's aim is not 'vacuum' the market of deposits

What other factors indicate the reliability of the bank and that it can be trusted with money?

One of the most important factors — the availability of credit rating. For example, in 2015 the rating agency 'Expert RA' has raised the credit rating for the Avers Bank to the level of A++ 'Exceptionally high (the highest) level of creditworthiness', rating outlook is 'stable', which means high probability of maintaining the rating in the medium term. Besides, the results of 2015 and the past years allowed the bank to pass the rating procedure in January — February of 2016 and to get the rating of the International Rating Agency FitchRatings at BB level — with a stable outlook.

The capital adequacy is also important normative. From the point of view of the normatives set by the Bank of Russia, Avers has a large margin. The indicator H1 — sufficiency of own means (capital) of the bank, which speaks of the protection of assets — more than 26% against the minimum acceptable value of the ratio H1 8%. This suggests that the growth potential of the bank is very high even with the current amount of own funds.

In difficult economic conditions, some people believe that multi-currency deposit will help them to keep their savings...

The main component of deposits in foreign currency – conversion, but during the transfer of money from one currency to another, a customer loses on the conversion. The second factor – it is very difficult to forecast the currency exchange rate. We do not have multi-currency deposits. And our customers do not show interest in them. It is better to keep funds in the currency in which you earn and spend money.

Now, many banks offer to increase the rate of deposit on the condition of an SMS-informing function activation or an additional plastic card for the deposit, which take a commission. Does the Avers Bank have such services?

We do not have such services. All terms of deposits are transparent and people clearly understand what they are getting. Yes, in our bank, a client can get a plastic card for the deposit without any fees, but he can choose whether he wants this card.

Criteria for choosing a bank to open a deposit

1. Criterion one: the interest rate
2. Criterion two: the bank's participation in the deposit insurance system
3. Criterion three: personal credit rating
4. Criterion four: the value of the capital adequacy ratio of the bank
5. Criterion five: the period of the bank's work on financial market
6. Criterion six: the total amount of deposits in the bank