Bet on the currency: when to open the Deposit in dollars and euros

Bet on the currency: when to open the Deposit in dollars and euros

The top 15 banks continue a gradual decline in yield on deposits in dollars and euros. For September the average yield on deposits in dollars and euros for a term from 3 months to one year fell by 0.18 PPT Is little more than a month ago – then a decline of 0.13 PPT

Stronger in just month has dropped interest rates on annual deposits in both currencies: 0.22 PPT on deposits in dollars by 0.27 percentage points in EUR. The minor change concerns the semi-annual Deposit in dollars: the decline was 0.04 p. p.

The most persistent

In September to keep rates at 4% and above, neither the Bank (in August they were offered ICD in July, ICD and Bank). Now the highest annual yield on deposits in both currencies and 3.5%. Such rates for deposits in dollars available at banks “home Credit”, the Bank and ICD. For deposits in euros — only in the Bank “home Credit”. Best rates on short-term (3-month) deposits offer the same Bank and ICD: 2.5% in dollars and 2% in euros. At the same time in the past the rates were reduced stronger than in other banks from top-15: 1 p. p. on all deposits in foreign currency.

Competition for depositors

Rates for deposits in U.S. and European currencies may rise a bit by December, said chief analyst of Raiffeisenbank Denis Poryvai. “In December will have another payment of external debt, and it is for credit institutions can be more realistic than September,” he explains. The fact that the debt has to repay large borrowers that are under sanctions and can not refinance the existing loans on the external market. According to Breaking, because of this, rates could rise by about 0.5 percentage points more unlikely: the demand for loans in the currency remains weak, and the CBR is ready to provide additional amount of foreign currency refinancing.

To push rates to growth can themselves investors, said the head of center of Deposit products of the Bank Anna Tarasenko. In December, many customers will decide what to do with deposits, previously exposed at a higher rate. Therefore, banks will be more likely to compete for depositors ‘ money, says Tarasenko.

Rate is not important

Should I wait for increase of rates or to open a Deposit in foreign currency now?

It is better to prefer the first option, advises analyst IK “SOVLINK” Olga Belenkaya. Choosing between rouble and currency contributions must understand that they help to realize different goals. Monetary Deposit to protect against surges of course, and the stakes are minor: the contribution brings income due to the growth of the dollar against the ruble, not from Bank interest, Belenkaya says.

“Rate at 4% per annum now can be called good”, — said Tarasenko from the Bank.

Acceptable profitability level of currency rates for Russian banks is at the level of 3-3,5% for deposits in euros and 3.5 to 4.5% for deposits in us dollars.

“If the stakes are higher this range, we should be wary, since this means that the Bank with high probability, takes on additional currency risks” — warns the head of Department of Deposit and settlement products of the Bank Tinkoff Plato Pieszecki.

Since all banks now offer low interest rates on deposits in foreign currency, it is better to pay attention to the reliability of the Bank and flexible terms of Deposit: early withdrawal and replenishment.

Contribution in dollars or euros better access to long-term (2-3 years) investments to protect themselves from macroeconomic risk, advises Belenky.

But limited to only them is not worth it. Savings need to diversify. It makes sense to open short-term ruble Deposit: if the sharp fluctuations of the exchange rate, you will be able to quickly pick up the money, in addition, the RUR need for daily life — and remove them from the short-term Deposit without loss of interest easier.