19.04.2023
LHV Pank has launched a new demand deposit solution designed for business clients, according to which companies are paid significantly higher interest of 0.70% for an amount exceeding EUR 20,000 in their current account.
According to Annika Goroško, Head of Retail Banking at LHV, companies have been very interested in depositing money in the environment of higher interest rates.
‘It is evident from our clients that competition in the deposit market has had a positive impact – our current increases in deposit rates have proved attractive to clients, and companies have also been actively placing their available funds into fixed-term deposits. However, as companies also hold a large amount of liquid assets that can be settled at any given time, unlike a fixed-term deposit, we also want to pay them higher interest on this,’ Goroško said.
Interest on the demand deposit or, in other words, the money in the current account, is calculated every day, i.e., from one calendar day to the next. In order to receive the new higher interest rate, clients are not required to do anything on their own; instead, LHV will automatically calculate 0.70% interest from 17.04.2023 and pay the calculated interest amount to the account at the beginning of the month following the accounting month, usually on the 5th day of the month. The new interest only applies to LHV’s business clients and is paid on an amount exceeding EUR 20,000.
In addition to companies, private clients who are LHV AU-clients or private banking clients will earn higher than usual interest on their on-demand deposit. An annual interest rate of 1% on the current account.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group’s companies employ more than 920 people. As at the end of March, LHV’s banking services are being used by 391,000 clients, the pension funds managed by LHV have 130,000 active clients, and LHV Kindlustus is protecting a total of 155,000 clients. LHV’s UK branch offers banking infrastructure to 200 international financial services companies, via which LHV’s payment services reach clients around the world.
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