Banks have started to raise rates on individual deposits

A number of large Russian banks have raised interest rates on certain types of deposits, which contradicts the general downward trend in deposit yields. Izvestia found out on October 21.

According to experts, the main reason for the rate increase was the internal needs of banks. Higher deposit returns help financial institutions effectively solve operational tasks, such as raising capital to finance large investment programs and expand lending.

"Increased rates are primarily a competitive tool. Banks can actively raise funds to finance specific projects or fulfill loan portfolio plans," said Alexey Vinogradov, First Deputy Chairman of the Board of RosDorBank.

Experts also point to the seasonal nature of the rate increases. The autumn growth in business activity traditionally intensifies competition between banks for liquidity, while at the same time the regulator strengthens control over compliance with liquidity standards, which is important for the stability of the financial system.

Experts advise considering short—term deposits of up to several months in the first place. This will allow you to capture the increased profitability before the possible next rate cut.

When placing funds, it is recommended to diversify investments, including through long-term investment programs offered by large financial institutions.

Read more in the exclusive Izvestia article:

Russian banks have begun to raise rates on deposits in rubles.