''Be Transparent'' for private individuals

With a current account you can:

Receive money transfers:

  • salary or pension;
  • social insurances;
  • locally and from abroad.

Send money via bank transfer:

  • in the country and abroad;
  • pay taxes and fines.

Make withdraws and payments with debit card

  • from ATMs locally and abroad;
  • at POS so you do not need to carry cash.

Pay utility bills

  • monthly - for electricity, phone bills etc.;
  • without visiting a branch of the Bank or waiting in line

Make monthly payments

  • for leasing, loans, cable television etc.;
  • save by setting aside funds on your savings account
  • Without visiting a branch of the Bank

 

How many types of bank cards are there?

Debit cards allow you to:

  • receive salary, pensions or social insurances;
  • withdraw cash at ATMs;
  • Payments in shops.

Credit cards:

  • allows you to cover shortages in your budget;
  • payments in shops;
  • the limit on the credit card is set by the bank;

It is important to know:

With a credit card you may feel that you can afford many things. However, without self-control the credit card limit can be quickly reached. If you take out the entire limit with one withdraw, you should develop the habit to regularly restore certain share of it. Otherwise, you will need to, after certain period, deposit the entire amount in one payment.

What can be the fees related to a current account?

Draw a parallel between the various banks:

Current account fees Bank 1 Bank 2 Bank 3
Account opening fee (flat fee)      
Monthly maintenance fee      
Account closing fee (flat fee)       
Withdraws and deposits fees
Deposit at cash desk fee      
Withdraw at cash desk fee      
Limit for fee-free deposits/withdraws      
Transfer fees
Money transfers      
Utility bills payment fee       
Fixed transfer fee (leasing, rent, internet bill, etc.)      
Current Account Card
Fee for issuance of debit card       
Yearly service fee for debit card       
Fee for withdraw at ATM       
Payment at POS devise      

 

What else are bank cards used for?

  • to credit GSM pre-paid cards.
  • when travelling abroad, when booking hotel rooms, plane tickets or renting cars;
  • payments of utility bills for electricity, heating water, phone bills on an ATM (E-Pay);
  • to check the movements and the balance on your accounts;

How important are the savings?

  • The money management skills are developed in early childhood. It is parents’ responsibility to educate financially their children. This lets the children develop habits for planning their savings and expenses.
  • The money that you save today can help you be prepared for unexpected expenses or purchases.
  • Anyone can save. The important thing is to regularly set aside some sums, even if they may be small in amount.
  • Citizens’ deposits up to BGN 196 000 in any bank inBulgariaare guaranteed by the Bulgarian Deposit Insurance Fund
  • In most banks account opening, account maintenance and depositing funds on the account are free of charge
  • You can always take out a loan instead of saving. However, do not forget – the loan has its price – an interest rate and fees!

How to save?

We recommend you:

  • to choose a Time Deposit if you have already saved an amount, which you know you will not need for the period of the deposit
  • to choose a Savings deposit if you want to save by small amounts and freely dispose of your funds
lorem Standard deposit Savings deposit
Period Usually opened for a defined period Most often termless
Advantage Higher interest rate; it is mandatory that the amount is not withdrawn before maturity Free withdraws and deposits without loss of interest
Interest Paid at maturity Paid monthly or yearly

 

 What kinds of deposits are there?

  • Deposit with interest, increasing according to the amount 
    Useful tip! When you increase your deposit, always check if the higher interest will be on the whole amount or only on the increase. 
  • Deposits with option for withdraw before maturity 
    Useful tip! Check if you any fees are due upon withdraw. Also check whether you can lose the interest if you withdraw more times than permitted 
  • Deposit with advance interest, paid upon opening the account 
    Useful tip! If you withdraw the deposit before the end of the period, the bank will deduct the amount paid upon opening from the amount you have deposited

How to calculate the interest on a deposit?

Example: You are opening a 3-month deposit with BGN 1000 with 8% interest rate.

  • the fee of 8% is usually on yearly basis
  • to calculate the interest rate per month, you need to divide the yearly interest rate by the number of months in an year – by 12

Interest rate for 1 month = 8%/12 = 0.67%

Interest rate for 3 months = (BGN 1000 x 0.67%) x 3 months = BGN 20.10

 
Important to know:
Is the deposit automatically renewed and if so – under what conditions?
Is the interest added to the initial amount or is it paid on another account?
Is there a minimal amount for opening the account?
Is it possible to deposit additionally and are there any limitations in this regards?
When and under what conditions you can withdraw from your deposit?
Are any additional fees due?


How to allocate the personal budget?

The financial situation of the borrower is one of the key factors for the bank to disburse a credit.

To estimate what amount you can repay monthly without getting in a difficult situation, it is important that you calculate your monthly budget:

А (Income) Amount B (Expenses) Amount
Salary    Rent expenditures  
Bonuses   Bills for Electricity + Phone + Water + Heating + Gas  
Income from rent   Cable TV & Internet   
Pension   Payments on a credit/credit card  
    Family expenses / education  
    Food  
    Transport expenses  
    Fuel   
    Auto service   
    Healthcare  
    Repair   
    Gym   
    Hairdresser   
    Entertainment - cinema, concerts   
    Holidays/Trips  
Total income (A):   Total expenses (B):  
Remaining amount (A - B):

The remaining amount is the sum that you can depend on and which will be used to settle the new credit. It is recommended that you use no more than 50% of that amount for settling the requested credit. In this way you will have some funds for unforeseen expenses.

What types of credit are there and what are the possible collaterals?

Types of credit offered by the banks
Consumer loans disbursed to individuals that work on a permanent labour contract, with salary as main source of income;
Repair loans – these are loans for home repairs and activities related to energy efficiency;
Housing loans – disbursed for purchase of real estate;
Credit card disbursed as a limit on card which can be used for payments in shops and trade centres in Bulgaria, abroad, and on the Internet.

  • Collaterals
    Once the bank appraises your financial situation, it can ask for additional guarantees (collateral) to provide you the loan

The most common collaterals are the following:

  • guarantors;
  • transfer of salary to a current account in the bank;
  • pledge on salary;
  • mortgage on real estate;
  • pledge on funds.

What adds additional costs to your loan? 

Draw a parallel between the various banks

  Bank 1 Bank 2 Bank 3
Application processing fee      
Possible taxes upon disbursement of loan      
Flat fee for credit disbursement, paid usually upon disbursement,
most often a percentage of the whole loan amount
     
Fee for management and processing – can flat or yearly one and
it is usually a percentage of the amount/the outstanding amount
     
Taxes related to the collateral      
For review and appraisal of collateral      
Notary fees for mortgage      
Collateral insurance      
Annual percentage rate      

The consumer loan act obligates the banks to announce and calculate the expenses on consumer loans in the same way. This indicator used is called Annual percentage rate (APR). For calculating the APR all loan fees and interest are included.