High-income deposit opportunity

A deposit refers to the funds that customers place with the bank for a fixed period. Birbank offers interest earnings on these deposits based on a specified rate. Key advantages include the opportunity to earn high interest (up to 11% annually), the flexibility to increase the deposit amount at any time, the ability to use the deposit as collateral for a credit line, and, in some cases, eligibility for tax benefits. Additionally, deposits can be made in both Azerbaijani manats (AZN) and US dollars (USD).

Deposits placed with Birbank can be increased or decreased up to 1 month (30 calendar days) before the contract maturity date. These transactions can be performed online via Birbank payment terminals or the Birbank mobile application.

For increasing a deposit, the minimum additional amount is 100 AZN/USD for deposits opened at branches, and 10 AZN/USD for deposits opened via the mobile application.

As for decreasing a deposit, for deposits opened at branches, the minimum withdrawal amount is 100 AZN/USD (provided that at least 500 AZN/USD remains in the account). For deposits opened via the mobile application, the minimum withdrawal amount is 10 AZN/USD (with a minimum remaining balance of 10 AZN/USD in the account).

According to Article 102.1.22 of the Tax Code effective from January 1, 2024, interest income earned on manat deposits is subject to taxation under the following rules:

• For manat deposits with a term of 18 months or longer, the entire amount of interest income is exempt from the 10% income tax for a period of 3 years.
• For manat deposits with a term shorter than 18 months:
  • If the interest is paid at the end of the term, a notional monthly interest is calculated, and the portion up to 200 AZN per month is exempt from the 10% income tax.
  • If the interest is paid monthly, the portion of interest up to 200 AZN per month is exempt from the 10% income tax.
• For manat deposits placed before January 1, 2024, the previous tax regulations apply to the interest income earned up to that date.

According to Article 102.1.22 of the Tax Code effective from January 1, 2024, interest income earned on foreign currency deposits, including those in US dollars, is subject to a 10% income tax.

• Regardless of whether the interest is paid monthly or at the end of the term, a flat 10% tax is applied to all foreign currency deposit earnings.
• For foreign currency deposits opened before January 1, 2024, the previous tax regulations remain applicable to interest income earned up to that date.

At Kapital Bank, customers can open deposits in both Azerbaijani manats (AZN) and US dollars (USD). The available deposit terms are:

• For AZN deposits: 3, 6, 12, 18, 24, and 36 months
• For USD deposits: 1, 3, 6, 12, 18, 24, and 36 months

There are two interest payment options available:

• Monthly Payout: Interest is calculated and transferred to the customer's account every month, providing a steady stream of income.
• Payout at Maturity: Interest is paid in full at the end of the deposit term. In this case, the total earnings are higher due to the compounding effect — interest earned is added to the principal and generates additional returns.

Interest rates vary depending on the deposit amount, currency, and selected term:

• AZN deposits offer interest rates ranging from 8% to 11%, with the highest rates typically available for terms of 18 months or longer.
• USD deposits offer interest rates ranging from 2.7% to 3.7%.

Customers can use the deposit calculator to compare different options and forecast potential returns in order to choose the most suitable deposit plan.

A deposit calculator is a tool that allows customers to estimate the interest income they will earn from their deposits in advance. To use the calculator, users need to input the deposit amount, term, currency, and interest payout method (monthly or at maturity). Based on this information, the tool calculates the estimated total income and final amount, helping customers make informed comparisons between different options and choose the most profitable one.

The insurance terms for deposits are determined in accordance with the legislation of the Republic of Azerbaijan. This process ensures that customers’ funds are protected by the state up to a certain amount. In cases where the bank becomes insolvent or its license is revoked, compensation is paid to the customer for insured deposits.

As the conditions and limits related to deposit insurance may change over time, customers are advised to stay informed by regularly consulting the bank or the Deposit Insurance Fund for the latest updates

Promotional terms do not apply when the deposit term is extended. These conditions are not valid for automatically renewed deposits at the end of the initial term. In such cases, the standard terms in effect at the time of renewal are applied.
To benefit from a promotional offer, the customer must either sign a new contract or open a new deposit in accordance with the campaign terms before the current deposit term expires.

There are two main ways to open a deposit:

• At a branch: Customers can visit any Kapital Bank branch to open a deposit. Bank representatives will provide detailed guidance throughout the process.
• Via the Birbank mobile app: Deposits can also be conveniently opened through the Birbank mobile app. Customers can select the deposit amount, term, and interest payout method directly within the app.

Both methods are secure and user-friendly. For those using the mobile app, the process is faster and more convenient.