Banks cut deposit rates to August 2024 levels

Nine of the top 10 credit institutions reduced deposit rates before the next meeting of the Central Bank - the average yield fell to the lowest levels since August 2024, below 19%, as "Izvestia" found out. Rates of deposits for three months and six months during this time fell by 0.5 p.p. and reached the range of 19.2%, annual deposits - by 0.7 p.p. to 18%, follows from the data of credit organizations.

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Deposit rates are decreasing, prompting a search for other investment tools.

Despite the gradual decline in yields, the savings rate is now near historic highs, explained "Izvestia" in the press service of the Central Bank. This level is enough for less money to be used for the consumption of goods and services, and the demand in the economy eventually slows down.

The deposit market grew by almost Br1 trillion in April alone, VTB's press service said. The decline in yields does not yet significantly affect the inflow of money, so banks simply take advantage of the opportunity to reduce the cost of their resources, said Vitaly Kostyukevich, director of retail products department of Absolut Bank. It is profitable: for example, with a deposit rate of 18% and a loan rate of 35%, the business margin, roughly speaking, will be 17%. That is why banks are trying to reduce the profitability of savings instruments.

The need of banks in the money of Russians is gradually declining, as they have already managed to accumulate reserves for the issuance of loans in the future, said economist Andrei Barkhota. According to the data as of the beginning of April, for the year deposits increased by 23%, and the loan portfolio is half as much - only by 12%.

Read more in the exclusive material "Izvestia":

Betting order: deposit yields have returned to the level of August 2024