Russians still have time to get maximum income from deposits
For several months now, bank deposits have been a tool for Russians not only to save their money, but also to increase it. This trend has clearly emerged after the December increase in the Central Bank's key rate to 16%. Following it, interest rates on bank deposits have also risen. After the key rate was raised to 18% at the end of July, investors are once again waiting in anticipation. Will there be another increase in deposit rates and when? Statements by some analysts about «extra-high» rates are adding to the general excitement. percent, which supposedly “you just need to wait a little”.
Russians have been receiving maximum income from their deposits since December of last year – for 8 months in a row. All this time, the Central Bank's key rate remained unchanged at 16%. And banks raced to raise interest rates on their services.
According to experts, this has never happened on the Russian financial market. The key rate has increased sharply only twice: in 2015 and in 2022 — to 17 and 20%, respectively. The yield on savings products in banks also increased, but did not last long. And here at 16% — almost a whole year…
The July increase in the key rate to 18% stirred up another wave of discussion in financial circles. According to the law of the genre, following this event, credit institutions, in the fight for clients, must raise rates on deposits and savings accounts. There are forecasts that the best time for depositors is still ahead, that the aforementioned 18% will at least be maintained in the first quarter of 2025.
Nevertheless, financial analyst and PhD in economics Mikhail Belyaev believes that citizens should not expect a massive and serious increase in rates on bank deposits. As they say, the train has already left.
— Following the increase in the Central Bank's key rate, banks are increasing interest rates on deposits, — he explains. — They are not doing this out of charity, they need to attract resources. This is especially relevant today, credit institutions are fighting to ensure that money comes to them, and not to competitors. This is a factor pushing for interest rates to increase.
At the same time, we have long been prepared for the regulator to raise the key rate, and banks have already used this factor. Those structures that believed that they needed to raise the rate, did. Those who did not need it and who met the Central Bank's standards are unlikely to raise it, if only symbolically. In my opinion, there will be no widespread increase in interest rates.
— The agreement with the bank specifies the term of the deposit. For example, if you deposit savings for 6 months at 16% per annum, you have the right to withdraw them early and transfer them to another bank at 20%. But in this case, the credit institution with which you closed the account early will not pay you the interest due. You are entitled to it only after the expiration of the agreement. It turns out that in one place you will win, and in another you will lose your income. Is there any point in fidgeting?
Then, banks introduced the concept of old and new money. Let's say a person had a deposit at 15% and the contract has already expired. The same bank raised the rate to 18%, but the citizen will not be able to raise the previous deposit at 18%. This is «old» money, it is necessary to open a new account at a higher interest rate. The legality of such actions by credit institutions raises questions, but this is practiced all the time.
— From the consumer's point of view, this is practically the same thing. A savings account even has certain advantages. It can be replenished and withdrawn at any convenient time, but not below the agreed balance. This is a plus.
But there is also a significant minus. On a deposit, the bank pays the interest fixed in the contract and cannot lower it unilaterally unless the document contains a special clause on this matter. But on a savings account, it can. What is better and what is worse — as they say, think for yourself, decide for yourself.
For now, one thing can be said with certainty: the Central Bank will not reduce the key rate in the next three months, or even six months.