Banks to disclose deposit conditions in easy-to-understand way
Tables with key deposit terms and conditions should be placed at the beginning of agreements. Banks should also post this information on their websites and in offices.
This requirement is provided for by a draft Bank of Russia Ordinance which includes a table form and an explanation on how to fill it in. The full list of the conditions to be disclosed in the table is stipulated by a law to come into effect on 3 July 2022.
In particular, the table should show the deposit rate and, in case of multiple rates, the condition and period for applying each of them, as well as the interest payment procedure, top-up and early withdrawal limits, as well as the possibility and procedure for renewing the deposit agreement.
‘We saw a lot of cases when banks appeared to be offering high interest deposits but in fact, in order to get such interest, depositors had to open a broker account, buy a life insurance policy or deposit a sizable amount of money,’ comments Mikhail Mamuta, Head of the Service for Consumer Protection and Financial Inclusion of the Bank of Russia. ‘From now on, a depositor will be able to see all these conditions immediately, correctly assess deposit profitability and choose the best option.’