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MICROFINANCE DEPOSITS AND SAVINGS In addition to its core microfinance loan products, FMFB encourages its borrowers to save and offers a range of deposit services to its microfinance clients. FMFB believes that the poor can save, and is committed to facilitating savings and wealth accumulation as part of its poverty reduction initiatives. The Bank offers demand deposits as well as fixed-amount time deposits, though at present, interest is not paid on demand deposit accounts. FMFB is offering three types of deposit products which are designed to attract and encourage clients to save in TJS, as well as in foreign currencies, with the attractive interest rates: Time Deposit is a money deposit that cannot be withdrawn for a certain “term” or a period of time. It is an investment where the interest rate is guaranteed not to charge for the whole of the nominated term. It provides the security of knowing that interest income is protected from fluctuations in investment markets. The period for which clients can deposit their funds is ranging from 1 week to 1 year, and upon termination of the contract the client can renew it. The interest is paid only upon the completion of the term and in case of the early withdrawal no interest will be paid to a client. No additional deposit is allowed. FMFB’s newest deposit product is the Easy Deposit product which offers high interest rates for TJS deposits with the added benefit of having no restrictions. This type of deposit has no term and the clients are free to deposit for whichever term they wish to. The interest is paid monthly and clients can withdraw it without any penalties. Additional deposit is also allowed. The Child Deposit offered by FMFB is designed for the children not reached the age of 18. Their account is opened by any of the closed relatives and they are all allowed to deposit to this account. The term starts from 6 months to 5 years with the interest paid monthly. In case of early withdrawal no interest is paid and the term is renewable. The Bank also introducing a monthly contribution savings product targeted at salaried employees. This product will allow savers to make small monthly deposits over the period of a year and accrue interest on these deposits at a very attractive rate. These products are being marketed to the large numbers of clients that are now served by the Bank as a result of its payroll services program (discussed below under commercial banking). Emigrants Remittances The Bank has recently become an outlet for the transfer of emigrant's remittances from abroad. Beginning in November 2006 the Bank began working with seven Russian-based money transfer systems (MTS): Anelik, Contact, Migom, Unistream, Western Union, Bistraya Pochta, and Leader. Emigrant remittances are extremely important to the Tajik economy and contribute to both economic development and the reduction of poverty. Currently, most emigrant's remittances that come in through the formal financial sector do not stay in the banking system and are withdrawn immediately. The Bank is encouraging remittance receivers to deposit some of their funds into formal savings accounts. Additionally, the Bank with its extensive branch and district network is well positioned to process remittances at remote locations while at the same time offering a suite of products to complement these remittance flows. Commercial Banking As well as providing microfinance services to the people of Tajikistan, FMFB is a commercial bank that offers a range of financial services that meet international standards for security and professionalism. The Bank makes these services available to embassies, international and national NGOs, and Tajik and foreign firms and private individuals. The Bank has gained the confidence of many international organizations and entities operating in Tajikistan that were not previously participating in the Tajik financial market. Deposit services are available in both domestic and foreign currencies and interest rates for term deposits are based on current market demands. The Bank also offers domestic and international money transfer services to its commercial clients through its network of correspondent accounts and buys and sells currencies on its own behalf and on behalf of clients. The Bank has also recently introduced a payroll services product to its commercial clients. Until recently, the vast majority of companies and international organizations in Tajikistan have paid their salaries in cash. This trend is changing with an increasing number of organizations seeking to formalize their payroll and pay their staff through bank transfers. The Bank is helping to facilitate this and is now providing payroll services to a number of agencies. FMFB also buys and sells currencies on its own behalf and on behalf of clients. Buy/sell rates for foreign currencies (primarily euro and USD) are established on a daily basis.  Top
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| © THE FIRST MICROFINANCEBANK - All rights reserved
All Photos © THE AGA KHAN DEVEOPMENT NETWORK - All rights reserved The First MicroFinanceBank, Tajikistan 105 Rudaki Avenue - Dushanbe, 734 003 | |||||||||||||||||||||
