Information on deposits to be provided to consumers in standard form
Banks will be obliged to provide easy-to-understand information in a tabular form to their customers to cover the key features of their deposits, which include the type of deposits, their amount and currency, replenishment options and limitations, deposit terms and date of claim, as well as annual interest rate.
This draft law elaborated with the active engagement of the Bank of Russia has been approved by the State Duma in the second reading.
Banks will be obliged to include in a tabular form a procedure for setting a variable interest rate and its value if available as of the signature date of the agreement, as well as a method of informing the investor about its update. If there are several interest rates set for a deposit, the tabular form will specify the terms and time of application of each of them.
The interest rate for demand deposits shall be stated as of the signature date of the agreement. If the agreement allows the bank to change the rate, this shall be specified in the tabular form. Also, the tabular form shall include a procedure for paying interest, an option and a procedure for deposit extension, the terms and the size of a minimum balance, as well as information on whether it is possible to claim a partial term deposit ahead of schedule.
The draft law will oblige banks to disclose information on a minimum guaranteed deposit interest rate in the agreement, in offices, on their websites. The Bank of Russia will set the procedure for its calculation and the tabular form template.
The approval of this draft law will enable consumers to better understand deposit peculiarities, assess actual profitability of deposits and make a reasonable choice out of offers from different banks. Also, the new requirements will help significantly reduce the risks of incomplete or improper information for depositors.