Invest in full: the season of New Year's promotions for bank deposits starts

Increased interest rates on deposits, bonuses to clients, and even sweet gifts. Izvestia investigated how banks are going to attract customers in the New Year's season and how effective these measures can be.

Why are banks raising rates?

The end of the fiscal year is the time to put aside funds, accumulate a financial cushion, and deal with debts. And set new goals based on the available capital multiplication tools. Deposits are still the most common. The reason is the ease of registration (including online), reliability (deposits are insured by the DIA) and high profitability (at the moment, the Bank of Russia is easing monetary policy more slowly than expected).

November and December are a time of surge in consumer demand. As a rule, the volume of loans for New Year's gifts or purchases planned for the current year is growing sharply, says Yulia Makarenko, Deputy director of the Banking Institute for Development.

— At the same time, banks are trying to make attractive products for depositors in order to have short free money at their disposal, which can be issued in the form of small loans, which are issued in banks or directly from retailers. Consequently, New Year's deposit promotions are not only aimed at new customers, whom banks are currently finding it very difficult to attract, but also ensure the stability of banks," she comments.

Bonuses — to banks

In December, the inflow of depositors' funds is recorded regularly. Valery Piven, head of the ACRA Financial Institutions ratings group, explains the activity of depositors with one-time accruals for the holidays: bonuses, 13th salary, etc.

"With this in mind, banks are stepping up their advertising activities both to prevent the outflow of funds to other banks and to build up their customer base," he said.

Yulia Makarenko agrees with him.

"When citizens have extra money, banks need to lure them in, preferably for many years," she says.

According to her, bonuses such as the 13th salary are mainly available to employees of large corporations, especially government ones, as well as employees and state employees.

Not only profitable interest rates

New Year's special seasonal offers are usually designed for a short or medium term (from three to nine months) and offer an increased interest rate — usually 1-2 percentage points higher than the standard one. In the current conditions, when the key interest rate is gradually decreasing, banks are likely to be more cautious and limit themselves to short deposits, but with attractive conditions, says Alexey Voylukov, MBA professor of business practice in digital finance at the Presidential Academy.

— Other bonuses are often added to traditional New Year's Eve promotions: the release of free branded cards, increased cashbacks, and discounts on payments in cafes, restaurants, theaters, and museums. This is important because people buy more gifts and attend cultural events and institutions more often," he says.

New clients

New Year's campaigns work mainly as a tool to attract new customers, says marketing expert Sergey Fedulov.

— Banks often make "entry-level" products as attractive as possible by offering increased interest rates or instant bonuses so that a person opens their first deposit or card. And then the ecosystem of additional services turns on — from brokerage offers to insurance and investment solutions. As a result, the deposit becomes not only a way to temporarily deposit money, but also an entry point into a longer—term financial relationship with the bank," says the expert.

However, if the customers are premium and have been with the bank for a long time, the marketing expert notes, they may also be subject to the marketing techniques of banks.

— Sometimes non-monetary incentives such as gift sets, certificates, participation in prize draws, free registration of cards or privileges in partner networks appear in the arsenal. It is important for the client not only to feel the benefits, but also to receive a positive emotional response from interacting with the bank," said Sergey Fedulov.

Banks are also trying to strengthen relationships with customers through individual offers, personalized gifts, and invitations to private events.

— This strategy not only increases loyalty, but also reduces the likelihood of a client leaving for competitors, especially in conditions of high bid volatility, Yulia Makarenko noted.

Lead Magnet

According to Alexey Voylukov, sometimes a deposit is a signboard or a "lead magnet" to attract investment in other products.

— So, sometimes banks offer credit cards with an extended grace period, as well as shares of brokerage companies — for example, a gift in the form of securities to interest the client in investment products, — he says.

As practice shows, this strategy is extremely effective: in December, the deposit base of individuals usually increases four to five times more than the average for the year. "This confirms that December is the month of maximum financial activity," the expert summarizes.

From a psychological point of view, active New Year's Eve promotions, advertising and "sweet" gifts can "turn around" a customer from one bank and lure him to a competitor, Yulia Makarenko believes.

"It shows concern for the customer, and people want a real holiday before the New Year: to receive a box of chocolates, a box of nuts, a branded gingerbread with the bank's logo or jam made of roses at the bank's office, it's very pleasant," she concludes.

Izvestia sent inquiries about New Year's Eve promotions and marketing techniques of banks in December to the top 20 largest Russian banks, but none of them had responded by the time the material was published. A source at one of the banks, on condition of anonymity, noted that so far there is no information on New Year's Eve promotions and their list has not yet been determined.