New rules on repayment of deposits under new deposit agreements have come into force. The rules are implemented in accordance with the Law of Ukraine On Amendments to Some Legislative Acts of Ukraine concerning the Repayment of Term Deposits adopted by the Verkhovna Rada of Ukraine on 14 May 2015.

The new rules give a depositor the right to choose a clearly defined type of deposit agreement - “term" or "demand". From now on, the advance payment of a term deposit and any accrued interest on this deposit is possible solely when it is provided for in the terms of the agreement on a bank term deposit. Repayment of a deposit or its part on first demand is possible only under the agreement on a demand deposit.

In addition, the National Bank of Ukraine emphasizes that the above mentioned rule applies solely to the agreements on bank term deposits, which were concluded after the Law coming into force.

“The adoption of this Law is a win-win situation. These amendments allow individuals to manage their own savings and investments more effectively. At the same time, it will reduce the banking system risks owing to adjustment of the mechanism on repayment of term deposits. The National Bank of Ukraine expects that banks will quickly make changes to their operating systems in order to offer these two types of deposits to the population in the nearest future, and bank employees will assist customers in finding the most adequate option for financial planning, from now on, all the deposits will have a clearer purpose – either term accumulation or reliable savings with the permanent access to the funds," - said Vladyslav Rashkovan, Deputy Governor of the National Bank of Ukraine.