In 2023, the population of the Moscow region’s deposits in banks increased by 19%, reaching 17.9 trillion rubles at the beginning of 2024, while a year ago it increased by only 1%. These statistics were provided to socialbites.ca by the press service of the Main Directorate of the Central Federal District of the Bank of Russia.
“In December 2023, 67% of funds were invested in term deposits (63% in December 2022). “In December, household funds in banks (excluding funds in escrow accounts) increased by 8 percent compared to the previous month, following a 2 percent growth in November compared to October.”
According to the Central Bank of the Russian Federation, in general, in 2023, household funds (including deposits and current accounts) increased by 7.4 trillion rubles (+19.7%); this is almost three times higher than in 2022 (+6.9%).
“Such a significant influx occurred due to the return of cash to banks in the course of social and budget payments, rising population wages and increasing interest on deposits,” says the regulator in its review “On the Development of the Banking Sector” dated December 2023.
Currently, deposit interest rates in Russia are at 8-15% annually. Following the Central Bank’s interest rate increase, banks increased their deposit rates. The Bank of Russia moved to its key interest rate hike cycle for 2023 on July 21; The rate was increased five times to 16% annually on December 15.
Denis Popov, formerly PSB Chief Analyst said “socialbites.ca” is now worth opening deposits for two or three years at once, because in the next two or three years deposit rates will only decrease.