Finances made simple
We want to help young people make good decisions. That's why we have put together financial education in plain language.
We want to help young people make good decisions. That's why we have put together financial education in plain language.
We know that finances can seem complicated at first. But once you get to know the basics, the next steps become much easier.
Here you'll find clear, simple explanations of the key things to think about before buying your first home.
We offer a diverse range of savings accounts, allowing you to choose the one that suits you best.
Supplementary pension saving is a smart way to boost your salary while saving at the same time.
An indexed loan generally has a lower monthly repayment than a non-indexed loan over the same term. Because you pay off less of the loan each month, it usually takes longer to repay in full.
The loan is linked to the consumer price index (CPI), which means it changes in line with the price of goods and services in the country.
If prices rise, the loan increases. If prices fall, the loan decreases.
A non-indexed loan generally has higher monthly repayments than an indexed loan. Because you repay more of the loan each month, it usually takes less time to pay it off.
The loan is not linked to the consumer price index (CPI), which means it does not change in line with the price of goods and services in the country.
When there is inflation, the loan does not increase.
The principal is the amount you originally borrowed. Interest is then calculated on this amount and paid each month.
If the loan is indexed, the indexation is added to the principal, so the loan balance can increase between months due to inflation.
If you make extra payments towards the principal, your debt reduces faster, and your interest payments will go down as a result.
Fixed interest rates are locked in for a set period.
This protects you from changes in interest rates for that time, which means the interest on your loan will not increase if inflation rises.
If you have an indexed loan with fixed interest rates, your monthly payments can still increase when there is inflation. This is because the loan principal increases when prices in the country go up.
Variable interest rates can change when conditions change.
This means the interest on your loan may go up or down, for example, when the Central Bank's policy rate changes.