Methodological aspects of pricing of fixed deposits of the population

Abstract

As the retail deposits remain a key source of bank’s fundings, the deposit interest rate affects the scale of its activities and profitability. The paper shows that in the context of the exploited business model, as well as the current state of the economy and financial markets banks may use different approaches to pricing retail deposits. The author discusses the benefits and disadvantages of traditional models and proposes methodological recommendations for the implementation of an integrated marketing approach to setting interest rates on deposits.