Kazakh Banks to Pay Interest on Current Accounts Starting March 19

Starting March 19, banks in Kazakhstan will be permitted to pay interest on funds held in clients' current accounts, a practice that has been banned for the past seven years. The maximum allowable rate is set at 1% per annum.

The change comes into force with the enactment of the new law "On Banks and Banking Activity" and related amendments. A key amendment to the Civil Code removes the long-standing prohibition on accruing interest for money placed in current bank accounts.

The interest will be calculated based on the actual balance of funds in the account. Banks will assess the amount of money held and calculate a small percentage from that sum, with all accruals being totaled. If funds are periodically withdrawn from or added to the account, the interest will be recalculated to reflect only the amount that was actually present.

Prior to 2019, paying interest on current accounts was allowed under Kazakh law, a provision established in an earlier version of the Civil Code since 1999. However, an amendment introduced on January 1, 2019, explicitly stated: "No remuneration is paid for the use of money placed in a current bank account." This instituted a direct ban.

At that time, the National Bank justified the prohibition by stating that current accounts were intended for daily transactions and payments—such as transfers and purchases—while savings should be directed into deposit accounts.

The broader banking law signed by President Kassym-Jomart Tokayev on January 16 introduces new types of banking licenses, regulates digital financial assets, expands possibilities for banking operations, and strengthens oversight of bank activities and client protection.