How banks in Azerbaijan help you make profit on deposits?
- Emil Khudiyev (Lawyer)
- No Comments
Bank deposits in Azerbaijan are not only a reliable way to preserve capital, but also an opportunity to receive a stable income without worrying about currency fluctuations.
Banks in Azerbaijan offer favorable interest rates and additional benefits. Unlike many countries where inflation eats away at the profitability of deposits, economic stability in Azerbaijan makes investments in manats especially attractive for both local and foreign investors.
In this article, we will analyze what conditions banks in Azerbaijan offer, how to make money on deposits and what benefits a depositor receives in addition to accrued interest?
Why deposits in manats are profitable?
The main advantage of deposits in Azerbaijan is the stability of the national currency. If you look at the volatility of foreign currencies, such as the Turkish lira (TL), which has experienced sharp declines in recent years, the Azerbaijani manat (AZN) remains unchanged and maintains a fixed exchange rate to the dollar (1 USD = 1.7 AZN) for more than 10 years (after the last devaluation in 2015).
What does this mean for depositors?
- Banks offer an average interest rate of 8% per annum and higher on deposits in manats, which is significantly higher than the rates on dollar deposits (1.5-2.5% on average).
- No currency risks: the depositor receives a fixed income that will not depreciate due to devaluation.
- The possibility of free conversion (even for foreign depositors) is an important advantage of deposits in Azerbaijan. The interest earned on the deposit can be easily converted into US dollars or euros to freely use them abroad. Thus, deposits in manats become a tool that combines profitability and ease of use.
How to choose a deposit for maximum income?
When choosing a bank deposit in Azerbaijan, it is important to consider several factors:
- Deposit term – the longer the term, the higher the rate. For example, deposits for 12-24 months are often offered at 10-12% per annum.
- Some banks offer interest capitalization, when accrued interest is added to the deposit amount, increasing future income.
- Possibility of early withdrawal – if there is a chance that the money will be needed ahead of schedule, it is worth choosing a deposit with flexible terms.
- Deposit insurance – in Azerbaijan, deposits are insured by the Azerbaijan Deposit Insurance Fund (ADIF) for up to 100,000 manats, which makes them as safe as possible.
Deposit as a basis for residence permit in Azerbaijan
One of the additional advantages of deposits in Azerbaijan is their connection with migration programs. A weighty argument in favor of opening a deposit in Azerbaijan is the opportunity to obtain a Temporary Residence Permit (TRP), and even Permanent Residency (PR).
According to the migration rules of Azerbaijan, having a deposit in an Azerbaijani bank is the basis for obtaining a residence permit. This makes the country attractive to foreign investors who want to obtain legal residence. You can read more about the process of obtaining a Temporary Residence Permit (TRP) in Azerbaijan in our article.
Moreover, if you keep funds in the bank for a long time and fulfill a number of conditions, you can apply for permanent residence in Azerbaijan. This is a profitable alternative to the “golden visa” programs offered by some European countries, but with simpler conditions. Details about Permanent Residency (PR) in Azerbaijan are available in this article.
Thus, by placing funds in Azerbaijani banks, you can not only earn interest, but also provide yourself with additional financial freedom and prospects for living in the country and subsequent emigration.
Azerbaijan: stability and profit
Azerbaijan is one of the few countries in the world where the national currency has demonstrated stability over a long period of time. Interest rates on deposits in manats make it possible not only to receive high income, but also to use it for personal or investment purposes outside the country. For foreign investors, a deposit can become not only a financial instrument, but also a way to integrate into Azerbaijani society. The combination of stability, profitability and legal advantages makes deposits in Azerbaijani banks a unique offer on the global financial market.
FAQ
How can a non-resident open a deposit in a bank in Azerbaijan?
You can read about the methods of opening a deposit in our article or contact us for help.
Are deposits insured in Azerbaijan?
Yes, insurance applies to deposits of no more than 100,000 AZN with an annual interest rate of up to 12% (in manats), and in foreign currency (US dollar, euro) up to 2.5%. You can read more in this article.
Can I obtain permanent residence if I make a bank deposit of more than 250,000 manat?
If you have never had migration permit in Azerbaijan before, you will not be able to obtain permanent residence, but only a temporary residence permit for a period of no more than 1 year. You can read about this in detail in our article on “Permanent Residence Permit in Azerbaijan”.
How EMZE can help you?
Have you read this article and want to open a deposit in a bank in Azerbaijan?
I am always ready to provide you with legal assistance, consult you on opening accounts in Azerbaijan and help.
You do not need to look for a lawyer anywhere else, just Сall Emil!
#deposit #banks #Azerbaijan #annual #income #help #EMZE #Law #Lawyer