The expert spoke about the features of irrevocable deposits

An irrevocable deposit is one of the alternative tools for long—term investments. The initiative to include these funds in the deposit insurance system is supported, since state protection of funds is an important factor for customers when choosing financial instruments, Vitaly Kostyukevich, director of Absolut Bank's retail products department, told Izvestia on April 15.

According to the expert, in order for certificates to compete with long-term deposits, they must also be protected by a deposit insurance system (CERS).

"Otherwise, the instrument will not be in demand from customers, or banks will have to offer higher returns on certificates than on deposits. However, from an economic point of view, it will be unprofitable, and market participants will not be interested in developing a new product," he explained.

The expert stressed that certificates are an alternative tool for long-term investments, but their integration into the deposit insurance system does not ensure a high level of demand. The financial market is characterized by significant volatility, and at current rates, certificates for three years (without the possibility of early withdrawal) may seem unprofitable to customers.

The information in the material is not an investment recommendation.

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Earlier, on January 18, Evgeny Shatov, a partner at Capital Lab, told Izvestia about current investment instruments. According to him, in conditions of high interest rates, deposits remain one of the most attractive tools for saving capital. The level of deposit rates in the largest banks reaches 23%, which allows you to earn a stable income with minimal risks.