Author Topic: 15% Deposit Interest - what's the catch?  (Read 472 times)

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Offline Дідусь

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Re: 15% Deposit Interest - what's the catch?
« Reply #15 on: 16:12 07-Aug-2017 »
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Typical forum morons. Not a braincell between you.

I'll do my own research.

Thankyou.

WTF? Do you have a loose screw? Don't you have a modicum of humor? Surely, had you checked a few other posts, you would have seen we are a good relaxed group of people until some real moron tries to rock the boat and disturb the peace. Oh, and by the way, I wasn't kidding when I said mattress. However, we now have a safe.

We used to have deposits. They did well but things got too risky so we took out our funds and relaxed. It took about 20 trips and lots of arguing with bank officials over 3 months to withdraw every Dollar and Euro.
"When surrounded by the dark void of the wilfully blind, it does not excuse those that are a spark of light their duty to shine" - Pompey Nik

Offline AkMike

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Re: 15% Deposit Interest - what's the catch?
« Reply #16 on: 17:14 07-Aug-2017 »
funkyronster  seems to be wrapped a touch to tight for us neanderthals.  ::)
Considering that he hasn't posted anything since his motorhome jaunt here in 2010 he's lost his sense of humor.
In Russia we only had two TV channels. Channel One was propaganda. Channel Two consisted of a KGB officer telling you: Turn back at once to Channel One. Yakov Smirnoff

Online David Rochlin

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Re: 15% Deposit Interest - what's the catch?
« Reply #17 on: 21:17 07-Aug-2017 »
We have to patiently expect people to respond with disbelief when told what actually goes on in Ukraine.  The absurd reality show that is actual Ukraine, will eventually set in.

Offline Gaudente

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Re: 15% Deposit Interest - what's the catch?
« Reply #18 on: 20:52 22-Sep-2017 »
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The catch is that banks offering unusually high interest rates for deposits are desperate, because they are economically stressed.  They might close or freeze your account or limit what you can take out of it, if conditions deteriorate further.
utter nonsense.
Procredit Bank is offering 16% for 1 year deposit and it is part of a German group.
15% is a current rate and by no means a sign the bank offering it is "economically distressed"
It is far from being a gift however, actually once you deduct the withholding tax of 19.5% the resulting net rate is about 12% which does not even cover latest yoy inflation of 16%. :(

Online Tnic

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Re: 15% Deposit Interest - what's the catch?
« Reply #19 on: 14:19 23-Sep-2017 »
Oh lovely.  Another banking expert responding to dead threads.

One out of three Hillary voters are just as crazy as the other two.

Online David Rochlin

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Re: 15% Deposit Interest - what's the catch?
« Reply #20 on: 16:15 23-Sep-2017 »
The general principle is that a bank that is offering a substantially higher rate on deposits, than competitors, is often doing so, because it desperately needs money to meet its own obligations.  I mean, they are not doing it for charity and face the same costs of funds from NBU.  I don't know anything much about Procredit in Ukraine, but a foreign bank can offer some insulation from Ukrainian bank hyjinks.  However, it isn't necessarily true that a foreign bank guarantees deposits of Ukrainian subsidiaries.   And of course interests change all the time.  The competative and rate environment may be a bit different this month.   The argument that most of the interest is really just inflation is only a partial explanation.  Ultimately, the rule of thumb is that banks don't give away extra interest unless they have to, and for some compelling reason.  And that reason usually is not good for depositors.  I didn't invent this concept.  But, I don't know anything specifically about Procredit Bank or what other banks currently pay now, in comparison.

Online K24

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Re: 15% Deposit Interest - what's the catch?
« Reply #21 on: 06:15 24-Sep-2017 »
Procredit is not a big German bank, in fact it does not even provide any banking services in Germany.  It is a network of smaller banks in developing countries with a headquarter somewhere in Germany.  So the fraud risk is probably smaller than with the typical Ukrainian bank, but the credit risk is substantial and nobody from Germany would come to save this bank.

Online Jay

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Re: 15% Deposit Interest - what's the catch?
« Reply #22 on: 09:29 24-Sep-2017 »
                Interesting reading. It reminds of an incident that i got involved in some years ago . I am talking about a country with serious laws  --certainly compared to Ukraine and generally considered a sophisticated country in the law and order stakes.
                Without being perfect on actual numbers --they were about as i say here.
Institution that basically looked like a bank ( the laws were changed after this time)  and behaved like one in all appearances , was offering 15% - 18%  interest on term deposits. At the time the "official" govt guaranteed  banks would offer  8-9% by way of comparison. To put that in context --the banks unsecured overdraft rate could have touched 20% plus  and secured loans 13% approx. I mention that as interest rates were high at that time -- so to a degree you became conditioned to high numbers -- so offering in the 15-18% range did not seem impossible.
                 I had an account for some time with modest sums in account -- and all went according to plan. I had a property settlement come in for a very large amount -- and after seeking the best rate -- decided to place in the  aforementioned account. About a year later I kept hearing stories about the institution. Subsequently -those stories started appearing in specialised media and then in general media.
The institution was based in a rural city -- and were important to the regions   & state economy as it employed a lot of people.
                 In the middle of all this-- the State government through the Premier made a statement supporting the institution and it's management -- supposedly after a thorough examination of the books by the relevant authority.
                 After that -- I actually put more money in that account !! The rumours persisted  over the next few months -- with various arms of government repeating  the assurances previously given . At the time -I also part owned  a finance company myself --which was ( & is) relatively tightly monitored by government . In talking with the guys auditing our books etc sitting around having a coffee --the subject of this other organisation came up -- and I asked if they were involved in doing the auditing . Basically --they told me no such thing was ever done -- and the assurances the Premier had given were based  on the directors say so !!!!!!!!!!!!
                 I remember feeling very pale  as I excused myself to head on out and physically arrange a withdrawal. I was able to get my outlay back immediately -- but the interest not until maturing date. So -- with cheque in hand --I head to my bank and pay the super fast fee to get it cleared that day !
                 Two days later -- they suspended withdrawals. A very large number of people lost all their money -- or were paid a tiny %  of it ( and I mean tiny eg 00.0001 type %  . 5 years later I got that tiny % on the money owed to me. I was very very lucky !
                Now-- the directors of that company hardly had their lives affected-- they lived happily in their wives houses,lived happily off their wives investments etc --while "investors" who thought they were clients making deposits mostly lost the lot !!
                 When I see  questions like are being asked here -- I am reminded of that episode . Over time I have looked at Ukraine and the system-- it is a 100% caveat emptor environment. My Ukrainian ex's mother last a substantial amount of cash in 2014 in the scramble to reality-- and she was not chasing a high return-- just a safe one.It was heartbreaking -- and I did not feel any better about it because I had tried to advise her over a few years that these "banks" were dubious.
               So-- there ya go !! :)

Online Fraucha

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Re: 15% Deposit Interest - what's the catch?
« Reply #23 on: 09:40 24-Sep-2017 »
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Procredit is not a big German bank, in fact it does not even provide any banking services in Germany.  It is a network of smaller banks in developing countries with a headquarter somewhere in Germany.  So the fraud risk is probably smaller than with the typical Ukrainian bank, but the credit risk is substantial and nobody from Germany would come to save this bank.

I just noticed yesterday the ProCredit office in Bila Tserkva was gone. If I am correct now both offices are closed. I have not seen even their ATMs anywhere in town.
Peace is the failure of the military to convince the government that it can and should kick its enemies ass.