25 May 2011, Wednesday, 16:18

Deposit interest rates fail to attract Russians

author: Alfia Sharafutdinova

The Russian banks have attracted 1,5 times less means: in the first quarter of the year the overall sum of the deposits made up 197,6 billion rubles, while in January-March 2010 this sum reached 309 billion.

The analysts of “The Agency for deposit insurance” explain this slowing down of the rates of growth first of all by low deposit interest rates with respect to the inflation level.

At the same time the rates go on falling down. In the first quarter such practice was observed in 52 of 100 biggest retail Russian banks. Only 14 banks have raised the rates. As a result, on April 1 the average level of the deposit interest rates (weighed by the volume of deposits) on the ruble deposits at the rate of 100 thousand rubles was 5,6% of interest per annum (0,1%-fall) and for the ruble deposits at the rate of 700 thousand rubles – 7,2% (also minus 0,1%). Therefore the interest rates on ruble deposits have recently dropped lower than the inflation level.

The reduction of the share of deposits in currency was going on in the first quarter: from 19,3% in the beginning of the year to 18,9% on April 1. The analysts explain that by the growth of attractiveness of savings in the national currency as a result of the ongoing strengthening of the ruble exchange rate to the currency basket.

The share of the long-term deposits (more than one year) went on growing from 64,7% in the beginning of the year to 65,8% on April 1.

themes: Banks, deposits