Tinkoff Bank compensates its customers reduced rates on deposits

Tinkoff Bank reversed its decision on lowering interest rates to replenish deposits and promises to pay depositors lost as a result of this decision, the income, the Bank said.

The representative of the Bank Darya Ermolina said that consumption is not significant to the group. A source familiar with the situation at the Bank, said that this amount is less than RUB 300 million. This was confirmed by a source at the Bank. In addition, the Bank has created a provision for these payments, which is reflected in liabilities for customer accounts in past reporting, said Ermolina.

In the winter of 2015 “Tinkoff” was taking deposits at 18% per annum in rubles and 6% in foreign currency. From 1 July 2015, the Bank has reduced rates up to 13% on ruble deposits and to 4% on a currency. This decision touched including the top-up contributions that the Bank’s clients opened from 24 December 2014 to 30 April 2015.

The Federal Antimonopoly service (FAS) has found a violation, and last fall ordered the Bank to cancel the decision and to compensate the investors for loss of income. Namely, to pay the difference between the rates set on deposits initially (in the first half of 2015), and the reduced rate established by the Bank from 1 July 2015. FAS also fined Tinkoff Bank for unfair competition in the Deposit market 300 thousand rubles.

About Chairman Oliver Hughes, the Bank had to reduce interest rates on deposits to protect capital and income of the Bank in a period of volatility after the events of December 2014. But now the situation in the economy and banking system improving, says Hughes. “We are seeing signs that the bottom of the crisis passed. The Bank showed strong financial results, and it allows us to develop the business and to grow further,” said Hughes.