The Bank responds to the challenges of the times with new term deposit products
CEO of Alpha Bank, Mr. Konstantinos Koutentakis
Alpha Bank listens to the needs of society as a whole and responds directly to them with competitive products and services. As stated in an interview with “K”, the CEO of Alpha Bank Cyprus, Mr. Konstantinos Koutentakis, emphasizes that, as the demand for deposits with high yields increases, the Bank offers new Time Deposit accounts that enable individuals to benefit from higher interest rate through different options. Alpha Bank Cyprus customers can choose from a wide range of products, the deposit product that meets their needs and benefit from the Bank's competitive interest rates.
In simple terms, how did we get from zero interest rates to rising interest rates and their effects on the market?
Perhaps the biggest shock came on the energy front, as rising oil and natural gas prices led to a significant increase in prices for goods and services. The era of cheap money, cheap energy and cheap labor was over. Against this background, Central Banks around the world have embarked on a course of raising their key interest rates in order to tame galloping inflation. This increase in interest rates led to an increase in the cost of borrowing for businesses and individuals, leading to a decrease in demand and investment activity. The period of zero interest rates was followed by rising inflation and interest rates, reflecting the challenges facing economies and central banks in trying to strike a balance between growth, inflation and stability. The continuous increase in interest rates by central banks has been observed for some time, with banks gradually transferring these increases to their deposit products.
Speaking of deposits, how does Alpha Bank Cyprus manage the situation that has been created and what exactly does it offer to its Customers?
Alpha Bank listens to the needs of society as a whole and responds directly to them with competitive products and services. As the demand for deposits with high returns increases, the Bank offers new Term Deposit accounts that enable individuals to benefit from high interest rates through different options. In particular, we offer individuals a new annual deposit rate of up to 2.1%, which is determined according to the deadline for deposits above a certain amount.
The specific product, Alpha Preferential Deposits, is offered to individuals for deposits over €50,000 with a fixed annual interest rate for a predetermined period of time: for a 12-month deposit an interest rate of 1.2%, for an 18-month deposit an interest rate of 1.6% and for a 24-month deposit an interest rate of 2. 1%. The interest is not compounded and is paid at the end of the term deposit. At the end of the specific deadline period, the Customer is given the possibility to withdraw, increase the capital or renew the deposit and capitalize the interest of the deadline.
Are there other options in deposit products?
Our Customers can choose from a wide range of products the deposit product that meets their needs and benefit from the Bank's competitive interest rates. Alpha Proodos, for example, offers a term deposit with a escalating interest rate that increases every quarter or six months, allowing the Client to choose the term that suits him by collecting interest every quarter or six months. Thus he ensures attractive returns for his deposits. Specifically, with a maximum escalating interest rate reached during the last period for an 18-month deposit of 2.0% and for a 24-month deposit of 2.5%. Additionally, by paying the interest, the Customer can make a total withdrawal, without any charge at the end of each quarterly or six-monthly period.
How can the Customers be served for the above products?< /strong>
Customers can be served by the Bank's Branch Network but also through electronic banking, Alpha 360 Web, by choosing the deposit product that satisfies their own profile and covers their own unique needs. In addition, for those who wish to be served only online, we created the Alpha Online Time Deposit which offers speed and ease of opening but also flexibility as it provides the option of a time deposit between 1, 3, 6 or 12 months with a competitive interest rate and the payment of the interest at the end of the term deposit.
How has technology contributed to the formation of new products/services by the Bank for better customer service?
Now, the processing of all banking transactions, from wherever the Customer is, 24 hours a day, is done through the upgraded electronic banking, Alpha 360 Web which provides the possibility for easy, safe, fast and efficient organization of private banking operations and businesses, at any time of the day. At the same time, Alpha 360 Mobile allows Customers to carry out transactions and monitor their account at any time, through a modern and functional online interface, either using their phone or tablet, with complete security. Also, the opening of a new account can now be carried out quickly, directly and securely without requiring a physical presence at a Bank branch.
What alternative options does the Bank offer for depositors, regardless of the deposit products?
Alpha Bank offers a multitude of options for its Customers who want to invest their funds in non-deposit products. Through the Alpha Bank Gold Personal Banking service, the Bank provides the Customer with the opportunity to invest in Mutual Funds managed by internationally recognized Mutual Fund Management Companies, with many years of experience in the investment sector. The Client can choose from a wide range of Mutual Funds which cover investment categories such as Equity, Mixed, Bond and Cash Management.
The Bank also offers a wide range of bancassurance products, from which the Customer can choose according to his personal requirements. For example, the Alpha Life Plan offers a savings plan combined with a life protection plan. It is a modern insurance-based regular or lump-sum savings plan to build capital to meet future needs through systematic savings and long-term investment.
What options are offered in card products and services ?
Through Alpha Bank's credit and debit cards, transactions are carried out safely and easily with the holders enjoying privileges, thus giving the Customer the opportunity to choose the card that suits his own profile. In addition, it is possible to add the cards to the digital wallets Apple Pay, Google Pay and Garmin Pay.
How does Alpha Bank face the challenges in the new financial environment?
In the constantly changing environment, Alpha Bank is at the side of its Customers, contributing in every way to the satisfaction of their increased needs and demands. The Bank adapts by creating products and services, offering options aimed at all Customers and which evolve over time in accordance with the constant developments in technology and in the wider financial environment, always keeping up with the shaped market.
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