Investing in deposit accounts brings profit: the earnings compensate for inflation - KFGD (rephrased)
In July, the Kazakhstan Deposit Insurance Fund (KDIF) conducted a monitoring, noting the prevailing inflation rate and its impact on the financial sector.
The annual inflation rate stood at approximately 11.8% in June, driven mainly by rising prices in services, food, and imports. The National Bank of Kazakhstan, in an effort to contain this inflation, has maintained the benchmark (base) interest rate at 16.5% since at least July 11, 2025. This tight monetary policy stance is expected to remain in place through the end of the year, unless inflation risks intensify further.
Despite the high inflation, banks in Kazakhstan maintained high interest rates in July, with little change in their activity. The maximum interest rate for savings deposits without the right to replenish increased by 1.5 percentage points, reaching 19.0%. The average rate on time deposits increased by 0.7 percentage points to 15.1% over seven months. One bank added a new offer to the time deposits segment in July.
Regarding guaranteed compensation for deposits in Kazakhstan, the KDIF typically guarantees compensation for individual deposits in financial institutions up to a certain limit in the event of bank failure. However, the latest figures or policy changes were not found in the provided results. As of mid-2025, the maximum guaranteed compensation for savings deposits in the national currency is 20 million tenge. For other deposits in the national currency, including on payment cards and current accounts, the maximum guaranteed compensation is 10 million tenge. If a depositor has several types of guaranteed deposits in one bank, they will receive a total sum of guarantees for all deposits up to the maximum limit of 20 million tenge.
The KDIF reminder does not mention any changes in deposit rates since the beginning of 2025. Floating interest rate deposits increased by 0.9 percentage points since the beginning of the year to 15.9%. The maximum rate on savings deposits with the right to replenish increased by 2.4 percentage points since the beginning of the year to 18.4%.
Some banks offered targeted interest rate increases as part of promotions, such as for customers receiving their salary on the bank's card. The real yield on tenge deposits in Kazakhstan is ensured by current inflation levels and interest rates offered on the market. The maximum guaranteed compensation for deposits in foreign currency, including on payment cards and current accounts, is 5 million tenge.
It is important to note that the information provided here may not be the most up-to-date. For precise, up-to-date information on deposit insurance guaranteed compensation limits from KDIF, it is recommended to consult the official KDIF website or the latest KDIF publications directly.
- The high interest rates maintained by banks in July, such as the maximum interest rate for savings deposits without the right to replenish at 19.0%, are part of the business environment for personal-finance management in Kazakhstan.
- Regarding personal-finance matters, the Kazakhstan Deposit Insurance Fund (KDIF) guarantees compensation for individual deposits up to a certain limit in the event of bank failure, with the maximum guaranteed compensation for savings deposits in the national currency at 20 million tenge.
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