What is capitalization?

What is capitalization?

Simply put, it is the accrual of interest on interest.

How does it work?

Usually, it works like this:

You open a deposit at a bank, for example, for 100,000 som at an interest rate of 11.5% annually. Then, at the end of the year, the addition to your deposit will be 11,500 som. The total deposit amount at the time of closing will be 111,500 som.

But, let’s repeat, this is the standard case. Now, let’s talk about the deposit from Doscredobank – “Bai Bol!”. When you open this deposit, the interest accrual works as follows:

For the same amount of 100,000 som (again, as an example), at an interest rate of 11.5%, the accrued interest will be added to the main deposit sum (monthly capitalization)! The total interest amount for the entire period will be 12,126 som. The final amount to be received will be 112,126 som. The difference between the deposits in the first and second cases is 626 som. The higher the deposit amount, the greater the difference.

In the first month, your capitalization will be 958 som, and then the deposit amount will be 100,958 som. In the second month, the interest will be calculated not on 100,000 som, but on 100,958 som, and so on.

The advantages of the “Bai Bol!” deposit also include:

• The ability to withdraw interest starting from the first month

• The ability to make monthly deposits (both at bank branches and through online banking on our website)

• Also, the current maximum interest rate on the “Bai Bol!” deposit is 12%!

You can calculate your savings on our website.

Save money the right way!

With care for you, Doscredobank

#baibol!

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