Attractive Pension Deposit

The International Bank of Azerbaijan (IBA) from the beginning of the year until November 1 attracted more than 6,100 Pension deposits.

According to official information, the history of the product originates from the end of last year, and during this time the aggregate amount of these deposits amounted to AZN 213,300. Experts predict a long life to the innovation against the background of the lack of private pension funds. It is noteworthy that the government is not going to start them, annually increasing the revenue and expenditure of the balanced budget of SSPF.

According to the press release of CBA, Pension is a cumulative deposit for a period of 15 years. Under the contract, the investor can "retire" at 50 years of age already, and his sum accumulated during 15 years is doubled. Thus, in monthly payments of funds in the amount of 100 manat on results of 15 years the accumulation reaches 18,000 manat. To this amount the bank adds 18,107 manat = 36.107 manat. If the deposits are placed for 32 years (from age 18 to 50), then, upon the expiration its sum will increase fivefold.

The advantage and distinctive feature of this deposit against the traditional system of pension insurance is that in the case of death of the depositor his contributions together with the accrued interest are inherited in full size.

IBA was founded in 1992 and is the largest bank in the country. More than half (50.2%) of the shares are owned by the state and 49.8% - by private shareholders. --17D-