Alternative System of Pension Savings from the International Bank of Azerbaijan

The International Bank of Azerbaijan (IBA) has introduced a new product "Pension contribution" for private pension savings.

According to Director of Retail Business Elmira Gabibullaeva, it provides alternative pension deductions for compulsory state social insurance. "Pension contributions" is a contribution to cumulative period of at least 15 years, which has the most flexible terms in favor of the depositor.

Note that under the agreement, the depositor can "retire" now at 50 years old, while the amount accumulated during 15 years is doubled. For example, if the monthly allocation of funds is in the amount of 100 manats , on the basis of 15 years of accumulation it reaches 18,000 manat. The bank adds to the sum 18,107 manat. As a result, upon expiry of the deposit the client receives 36,107 manat. If the deposit is placed for 32 years (from 18 years old to 50 years old), then upon the expiration of its sum is increased fivefold. The amount accumulated in 32 years reaches 38,400 manat , and the amount accrued to the bank deposit (at 100 manat invested monthly bank charges 408.2 manat ) reaches 156,745 manat , total turns 195,145 manats.

Here is another example. With the accumulation of funds for 45 years, that is during the full period of working life (18 years - 63 years) , the amount is increased by 11 times: to accumulated 54 thousand manats there is added 553 693 manat (total 607 693 ), or monthly contribution to 100 manat bank pays 1,025.4.

Also, the owner of "pension contribution" is offered cumulative plastic card, with which he can regularly track and interest accrued at ATMs IBA. In addition, this information can purchase through internet banking, Mobile banking , as well as the information center of IBA .

In this case, the advantage and the hallmark of such a contribution to the traditional pension insurance system, is that in the case of death of the depositor contributions together with accrued interest inherited full size.

By the way, on completion of the accumulation period , the owner of the pension contribution may order in three ways: directly get the entire deposit amount , or decide to get " retired " throughout life , with the investor will receive dividends from the contribution , and the contribution goes to the heirs , or to receive it monthly over a certain period . While the rest , on account of the sum will bear interest , which leads to the fact that the investor may receive 46 times more than they invested.

Certainly, in the case of violations of the terms for " pension contribution ", the owner receives the deposit amount collected them in full size, with the amount of interest charges can be up to 75% of the total volume .

Currently there is no such a flexible product on the market savings deposits of Azerbaijan. "Pension contributions" may also be regarded as the best contribution , as after expiration of the contract , subject to monthly renewals , allows you to get at least 200 % savings. -15D -