Krediidipank has increased time deposit interest rates to 2 per cent

20.04.2017

Krediidipank, which changed owners this January, has increased time deposit interest rates which can now reach 2 per cent in case of longer deposit periods.

According to Teet Kerem, the manager for everyday banking at Krediidipank, a time deposit is a good option for people who would like to have their savings earn extra in order to counterbalance the effect of inflation on their value without taking unnecessary risks. “A time deposit is the safest way to raise money; in such case, the customer earns the interest income agreed upon, and deposit amounts over 100,000 euros in Estonian banks are given state guarantees,” Kerem said.

“Another type of customer to benefit from time deposits is a company that would like to securely increase the value of its free money or liquidity buffer in today’s general zero interest rate environment without taking risks,” Kerem noted.

“Now Krediidipank is making preparations for entering the market as Coop Pank in the autumn. Raising deposit interest rates is one of the first steps in our new concept, which reflects our determination to provide our customers with the best products and services on the market,” Kerem added.

Krediidipank offers a 1.25% rate of return for one-year deposits and an annual rate of return of 2.0% for deposits with the term over two years. Deposit customers do not pay the monthly current account management fee. The maximum deposit period is 10 years. The offer is valid for the deposits opened until 23 June 2017.

Estonia’s biggest supermarket retail group Coop Eesti, with a sales network of over 350 stores across Estonia, bought the majority shares of AS Eesti Krediidipank, which was previously owned by the Bank of Moscow, this January. Coop aims to use Krediidipank as the foundation for creating the strong Coop Pank on the basis of Estonian capital, using the synergy between retail and banking and once again bringing everyday banking services closer to people’s homes. Coop Eesti consolidates 19 associations, which have a total of 80,000 cooperative shareholders and around 600,000 loyal customers.