The average rate in the largest Russian banks as of 10 March fell by 0.07 percentage points to 7.56% per annum (on the deposits of one year). A little less has changed the yield on three-year deposits in March, the average rate fell to 6.52% per annum 0.06 p. p. less than at the beginning of February. Deposits six months the average will bring to the depositor of 7.04% per annum. Short accounts last month, would be profitable by 0.19 PPT
It is noteworthy that for the first time in five months, the yield of deposits changed once in eight banks from top-15 by assets. Among them, six banks have reduced interest rates on ruble deposits, one Bank lowered its one deposits and increased for others, and another Bank, on the contrary, increased the yield of deposits. The number of reduced rates was the savings Bank. Now the yield on the Deposit “Keep” (with a maturity of one year) was less than 0.35 percentage points to 5.4% per annum. The yield on three-year Deposit decreased by 0.4 percentage points to 5% per annum, and the rate on deposits for three months has changed slightly, down by only 0.05 p. p. becoming on a par with the rate for annual Deposit.
Under the yoke of money
Savings Bank rates are an indicator for the entire market, so changing them affects the yield of deposits in other banks, explains the Vice-President of Asian-Pacific Bank (ATB) Vyacheslav Andryushkin. Another important reason for the lower rates on deposits is a surplus of liquidity in the banks, he said. “Deposits are attracted, and significant growth of volumes of crediting is observed. This situation puts pressure on rates and forcing banks to reduce the yield of deposits”, — said the banker. He also recalls the seasonal factor — the banks prefer to change the terms on their products in the spring. “January and February are the months of low business activity, and banks generally do not take such decisions at this time,” he explains.
Rare cases of rate hikes (in March slightly increased the yield of deposits in the Bank and ROSBANK), according to Andryushkina should not enter consumer confusion. “Banks simply equalize their position on attracting liabilities and, if at the moment there is a lack of funds for a certain period of time, then the rates go up,” he says. The banker agrees the head of Department of development of non-credit products and remote services ICD Natalia Rosenberg. “Overall, the market is now in the decline of profitability”, — she said.
In search of yield
In March, the annual deposits with relatively high interest rates, as before, can be found in the ICD and Sovcombank. Even after reducing the rates these banks are leaders in profitability — deposits open here can bring to the depositor 8.75% per annum and 8.6% per annum. To open a Deposit for three years at 8% in Sovcombank, a little below the going rate in the agricultural Bank is 7.65% per annum. In the same banks offer relatively high interest rates on three-month deposits was 8.8% per annum and 7.85%, respectively.
Andryushkin of ATB believes that the next three months, banks will not significantly change the yield of deposits, and rates stabiliziruemost. However, other bankers, the respondents still expect a further decline in the course of this year. “The excess liquidity in the system will accumulate this year, in conditions of low demand for loans will contribute to lower interest rates on deposits”, — says a senior financial analyst of Raiffeisenbank Denis Poryvai. According to his forecast, by the end of the year deposits will become less profitable by about 1 p. p. this is Indirectly confirmed by the fact that the average rate on three-year deposits is now almost 1 PP less than annual.
This difference reflects the opinion of bankers that the rates will decline in the future, says Andryushkin from ATB. “Banks are not willing to confirm the annual rate for two or three years, because when the entire market in a year will attract cheaper funds, will be unprofitable to hold on to the long high Deposit rates,” he says.
Bet on reliability
Bankers are advised not to chase high stakes: typically, they indicate low reliability of the Bank. Andryushkin of ATB recommends to place surplus funds on Deposit with the average market rates that will protect savings from inflation. It is also important to pay attention to additional options: for example, if the investor wants to have access to money, you should choose the Deposit with possibility of withdrawal and replenishment, says the banker. However, rates on such deposits is usually lower than for non-renewable deposits. In Sberbank, for example, the difference in yield between these deposits is about 1 PP.
Independent financial adviser, associate Professor of Finance University of Saida Suleymanova adds that banking customers have the ability to partially compensate for the decrease in the yield on ruble deposits. It is necessary to open a Deposit via Internet banking and not the Department. In this case, Deposit interest rate can be higher by several tenths of a percent, says Sulemanova.
Poryvai of Raiffeisenbank advises also to look at the credit quality of the Bank, if the amount exceeds the insurance indemnity ASV (1.4 million rubles). In addition, the depositor in any case is to store contract and cash receipt documents confirming the existence of a Deposit, he says. These documents will prove that the client kept their money in the Bank, if it turns out that the Bank took an off-balance sheet deposits.