In April, interest rates on foreign currency deposits was changed in three of the 15 largest banks by volume of attracted funds. The Bank of Moscow has lowered interest rates on dollar deposits for a period of six and 12 months, PSB has reduced the rate for deposits in Euro for 12 months. The Bank “Ugra”, on the contrary, increased interest rates for deposits in euros for three and six months, and proposed new deposits in dollars, which are also included in the sample . Due to this, the average rate on dollar deposits among banks top-15 in April rose slightly.
Thus, the average return of dollar deposits for a year has increased by 0.01 percentage points to 1.06% per annum. The average rate on dollar deposits for the three and six months increased by 0.07 and 0.02 percentage points to 0.33 and 0.68 percent per annum respectively. For Euro deposits, the picture is somewhat different: the average yield of deposits for a year has not changed, and on deposits for the three and six months it increased by 0.01 percentage points to 0.08 and 0.18% per annum.
The maximum annual yield of deposits in dollars now offered by the Bank “Ugra” — 1,51% per annum. Followed by the leader last month, the Moscow industrial Bank (IIB), offering a yield of 1.5% per annum. The highest bid for the contribution of €1 thousand for a year offers ICD — 0.95% per annum. Him — increasing rates for the Euro Ugra (0.42 percent per annum). Short (three months) deposits in dollars and euros are the best deals now from the Bank “Ugra” and ICD — 1,11 and 0.25% per annum respectively.
What to expect next
Rates on foreign currency deposits show weak dynamics due to its proximity to historic lows. The fundamental reasons for enhance their growth yet, warn the financiers interviewed . However, the profitability of foreign currency deposits still may rise slightly. “We expect that by the end of the current year rate for deposits in dollars for a period of one to three years could rise by 0.2–0.4 percentage points,” — said the chief analyst of PSB Dmitry Monastyrshin. In turn, the analyst of Raiffeisenbank Denis Poryvai expects stagnation in average interest rates on foreign currency deposits. “Maybe the rates will not increase, but decrease is clearly not,” he says.
To open foreign currency Deposit
Profitability of foreign currency deposits is much lower than the rate of ruble deposits. However, in the case of weakening of the ruble, the situation may change, said Dmitry Monastyrshin of PSB. The analyst admits the possibility of weakening of the ruble by 6-8% in the second half, but reminds that this is not a guaranteed scenario. “If OPEC will reach an agreement on the extension of the limit of oil production in the second half of 2017, it will support oil prices and quotations of the ruble, so ruble deposits will continue to be more attractive compared to foreign currency”, — says the expert. Denis Poryvai from Raiffeisenbank adds that now is a good opportunity for bargain currency, however, the analyst advises to place it in Bank deposits. It is better to give preference to other types of monetary investments, such as bonds, total Poryvai.