- Статьи
- Economy
- Three years will wait: irrevocable deposits in the Russian Federation will begin to insure up to 2.8 million
Three years will wait: irrevocable deposits in the Russian Federation will begin to insure up to 2.8 million
In Russia, funds on savings certificates will be insured for up to 2.8 million rubles. The tool is essentially similar to long-term deposits, but money cannot be withdrawn from there for three years. Although the president instructed to raise the amount of insurance a year ago, the bill has only reached its final stage: the government commission approved it on April 14, and the Central Bank also supported the document, Izvestia found out. The launch of this product, in fact, will be an alternative to freezing deposits, which some economists have recently talked about. In their opinion, due to the gradual reduction in interest rates, people will withdraw money from banks and put it into the economy, which will accelerate inflation. Whether the tool will really become attractive to Russians is in the Izvestia article.
What are savings certificates and how do they work?
Insurance of long-term savings of citizens will be increased in Russia. We are talking about the so—called savings certificates, which were commissioned by Russian President Vladimir Putin to launch. The legislative framework is currently being prepared for it.
The certificates themselves have existed in the Russian Federation for decades, they are insured, as well as all other deposits, for 1.4 million rubles, but banks can set conditions for these products at their discretion. The bill also assumes that funds on such deposits for a period of three years will be insured in the amount of 2.8 million rubles. The document was submitted by the Ministry of Finance, and on April 14 it was approved by the Executive Committee on legislative activity. The information was confirmed to Izvestia by a government source.
It is assumed that the certificate holder will not be able to terminate the contract prematurely and receive his money at any time. The draft law has been coordinated with all relevant departments, as follows from the documents to the board (Izvestia has them).
The Ministry of Finance confirmed to Izvestia that the bill was approved by the Board of Directors. An increase in insurance coverage and an increase in the safety of funds will encourage citizens to make longer-term investments, and will also lead to an expansion of the supply of such a product from banks, the ministry noted.
The law does not provide for the possibility of withdrawing money from an irrevocable certificate before the end of the deposit period, the press service of the Central Bank explained to Izvestia. They added: if the funds are needed earlier than this moment, then the certificate can be sold as a security to another person under an assignment agreement.
A savings certificate is a personal security confirming that a client has a deposit, explained Ilya Vasilkov, head of the Deposits product at Compare. According to him, unlike a deposit, it is impossible to replenish, partially repay or prolong the certificate. When it expires, the bank stops charging interest on it. When closing the product, it is not possible to receive money remotely, it is necessary to visit the bank's office.
Previously, similar tools already existed, but they have ceased to be popular due to less flexibility for the client compared to deposits. There is another disadvantage — if the paper is lost, the money from the account will not be given to the client, and you can restore your rights only through the court, Ilya Vasilkov added. In his opinion, savings certificates will be in demand only if the rate on them is higher than on deposits.
The Bank of Russia supports the initiative to increase insurance compensation for irrevocable certificates for more than three years to 2.8 million rubles from the current 1.4 million, the press service of the Central Bank reported. They stressed that this is one of the ways to attract "long money" into the economy and reduce the liquidity risks of the banking sector.
Currently, Russians' funds on deposits are insured for 1.4 million rubles. Even if the client has several deposits in the same bank, the total amount of which is higher, he will not be able to receive a refund of more than the specified amount. At the same time, a person's deposits are insured for 1.4 million in each credit institution. All banks that have a license from the Central Bank to attract money from individuals are required to participate in the deposit insurance system. Market participants contribute to the fund once every three months. This creates a "safety cushion" from which the Deposit Insurance Agency (DIA) will pay compensation if necessary.
Which is better — a savings certificate or a deposit
Market participants supported the insurance of funds on savings certificates from three years to 2.8 million rubles. This is an important step to increase confidence in financial instruments and expand long-term savings opportunities, said Dom Bank's Director of Retail Products.Russian Federation" by Daria Morozova. The initiative was also positively assessed by Sovcombank and AKBF (formerly Ak Bars Finance).
Such a tool will make it possible to attract "long-term money" into the economy, which is especially important for long-term lending and financing of investment projects, Daria Morozova noted. In addition, it can become a reliable "cushion" for citizens planning large purchases, children's education or retirement.
With the help of it, it will be possible to save up for the purchase of housing, because banks require an increasingly large initial payment. Such a product is suitable for those who are looking for stability, are ready to fix profitability and do not need immediate access to funds, the AKBF explained. They added that the increased insurance limit, which is twice the standard limit for deposits (1.4 million rubles), makes certificates an attractive option in conditions of economic uncertainty.
Savings certificates, in fact, will be an analogue of an irrevocable deposit, said Ashot Simonyan, Head of Renaissance Bank's Deposit Products Department. He stressed that such a tool would be of interest to banks, because it would allow them to attract customer funds for a long time with a high probability that the money would not be withdrawn.
On the other hand, for example, in the situation last year, when the level of profitability on savings products increased significantly, fixing the rate for a long time can make the instrument unprofitable for customers, Ashot Simonyan added. However, the market expects the rate to start decreasing this year.
The demand for certificates will depend on the attractiveness of the terms in comparison with other products, said Anna Zemlyanova, Chief analyst at Sovcombank. The yield on them should be higher than on standard deposits due to the fact that the funds will actually be blocked for a long time, says Daria Morozova from Dom.RF Bank. The difference of 1-2 percentage points — for example, 21-22% with an average deposit rate of 20% — looks reasonable, according to the AKBF.
Often, long-term savings instruments involve high returns, so if funds are available, they can be a good way to save money, the Postbank press service reported.
At the same time, early withdrawals should be allowed in exceptional situations: in case of serious health problems, loss of work, birth of a child or loss of a close relative, according to the AKBF. This will make the product more flexible and accessible, reducing customer concerns about the complete blocking of funds.
Can the authorities freeze deposits
At the end of last year, they began discussing in the public field a scenario in which the population would begin to actively spend savings, withdrawing funds from deposits after lowering the key interest rate. And this can dramatically accelerate inflation. Because of this, there were rumors a few months ago that it was even possible to freeze deposits, explained Fyodor Sidorov, founder of the School of Practical Investing. Raising money for long-term certificates could theoretically be an alternative to this.
However, Yulia Yakupova, Director of Banking Ratings at Expert RA, is confident that the initiative will only have a targeted effect on a fairly narrow target audience and will not entail a significant inflow of long-term funds into the economy. The fact is that in conditions of macroeconomic instability and volatile interest rates, the population prefers more profitable short-term products. The share of deposits for a period of more than three years is less than 2%, the expert said.
— Savings certificates have not been widely used before due to the well-developed online and offline banking, which over the past year has been offering deposits and savings accounts at very favorable interest rates. Nevertheless, under certain conditions, this tool has a future," says Fyodor Sidorov.
According to his expectations, with the beginning of the reduction in the key rate, the demand for certificates is likely to grow. People will try to manage to fix a profitable percentage, which will not be for a very long time. Interest in savings certificates will also increase when the stability of the country's financial and economic system is achieved.
Переведено сервисом «Яндекс Переводчик»
