OREANDA-NEWS. November 15, 2011. The tender commission to select banks for operating social accounts for retired people and monetary care recipients has extended the contract with VAB Bank until 1 January 2013 and evaluated its bid among the best for a number of Ukrainian regions, reported the press-centre of VAB Bank.

As the result, from 1 January 2012 on retirement benefits will be processed at VAB Bank also in Mirgorod district of Poltava oblast and Nezhin district of Chernigov oblast.  VAB Bank’s retirement programme has been thus represented totally in 24 oblasts of Ukraine, as well as in the Crimean Autonomous Republic, covering 79 localities and 36 districts of the country.

VAB Bank has been processing social payouts since 2002 offering clients not only an easy procedure to receive their pensions and social benefits but additionally a chance to accumulate extra cash.  Opening a pension account at VAB Bank is free, with no commission for withdrawal.  Interest accrued on account balance is 12% p. a.

“Socially targeted projects always require especial care and extra support by a bank’s product line.  Our customers whose pensions are processed via VAB Bank are offered, inter alia, very attractive deposit terms and, in particular, higher interest rates for the bank’s Retirement Deposit irrespective of a deposit period, compared to its other deposit products.  An that is by far not all,” Mr. Anton Shaperenkov, VAB Bank deputy chairman and retail business director, says.

According to Mr. Shaperenkov, the customers whose retirement programmes are serviced by the bank, get even better yield on their Pension Deposits, and this is done automatically.  He means an extra mark-up on the interest rate: 0.25% p. a. for deposits in hrivnia and 0.1% p. a. for US dollar or euro deposits.  Yet another mark-up of 0.15% or 0.5% p. a. respectively (depending on deposit currency) is offered for each renewal of deposit contract. 

“Customers whose retirement benefits are disbursed by our bank and who place their savings on a Pension Deposit may expect the yield of up to 16.5% p. a. for hrivnia deposits, up to 8.95% p. a. for deposits in US dollars, and up to 7.7% p. a. for euro deposits.  This is one of the best offerings in the market,” Mr. Shaperenkov points.

As of 1 November 2011, the total cash accumulated at VAB Bank’s pension and social care accounts amounted to nearly UAH 116.1 m, demonstrating a more than 78% growth since the year beginning.

Reference data
Vseukrainsky Aktsionerny Bank (VAB Bank) has been in the market since 1992 and is categorised as a large financial institution by NBU (the Ukrainian central bank). As of 01 July 2011, the Bank’s regulatory capital reached UAH869.7m and net assets UAH7.74bn. VAB Bank participates in the ATMosphere consolidated ATM chain covering in excess of 3900 cash machines across Ukraine.