Russian private customers have demonstrated a renewed interest in savings accounts as their aggregate volume expanded in February following a nearly six-month period of decline. Concurrently, deposit inflows from individuals in January and February of this year were notably lower compared to the latter half of the preceding year. Savings accounts have become a more convenient instrument than fixed-term deposits for both financial institutions and their clientele, offering greater flexibility as they wait for the key interest rate to lower.
According to Ilya Vasilkov, Head of the Deposits product at Sravni, current conditions favor depositors who open savings accounts and short-term deposits with rates exceeding the key rate. Should the central bank’s key rate trajectory trend downwards, a logical strategy would involve reallocating funds into fixed-term deposits for one year or longer, thereby securing a high yield for an extended duration. Nevertheless, savings accounts remain a practical and adaptable tool while we wait for further decisions by the Central Bank regarding the key interest rate.
The expert told Invest Foresight:
“Currently, numerous banks are offering introductory rates to new clients – those who have not utilized the bank’s products for several months or longer. Formally, this constitutes a premium over the base rate for a period ranging from one to several months. Subsequently, the base rate applies to the account. Furthermore, some banks may offer supplementary premiums to the base rate, for instance, to salary clients or for subscribing to services.”
To optimize risk management, diversification of funds into alternative asset classes, such as precious metals or government bonds (specifically federal loan bonds, or OFZ), is a recommended strategy, as advised by the specialist.