In recent financial commentary, concerns about the ability of ordinary bank deposits to preserve purchasing power persist amid rising prices. An academic voice weighing in on the matter is Andrey Sirotkin, a senior lecturer in the Department of Banking at Synergy University. He emphasized a simple but often ignored truth: when inflation runs high and central rates stay firm, money kept in traditional deposits may struggle to keep pace with cost growth. He described deposits and savings accounts as vehicles that at best may shield wealth from immediate erosion, yet almost never generate real gains in a high-inflation environment. Sirotkin pointed to frequent scenarios where banks post interest rates that lag behind the officially reported inflation rate, leaving savers with a net loss in real terms over time.
Data from early February indicates a gap in financial literacy and budgeting confidence among the public. Only a minority, around 13 percent, identify as financially literate, while a larger portion, about 63 percent, report challenges with budgeting, saving, and prudent spending. These figures underscore a broader struggle with money management and financial planning that influences how people choose to place their funds, whether in deposits or alternative investments.
On the same date, Izvestia highlighted a government initiative aimed at changing the tax treatment of income derived from long-term deposits. Deputy Chairman of the Federation Council Nikolai Zhuravlev explained that removing or easing taxes on such income could incentivize ordinary citizens to engage more actively in long-horizon investments. The move is framed as a policy lever to channel household savings toward instruments that support longer-term financial goals, though details and practical effects remain a topic of discussion among experts and taxpayers alike.
Earlier that year, the Central Bank reported a rise in cash in circulation during 2023, a signal of evolving cash usage patterns and the public’s ongoing relationship with monetary liquidity. Analysts noted that the mix of cash and electronic transactions continues to shift, affecting how households balance immediate liquidity against longer-term savings strategies.
In past guidance, some economists advised Russians to steer away from holding savings exclusively in dollars, citing currency risk and the potential impact of exchange-rate fluctuations on real returns. The dialogue around currency choice reflects a broader consideration of diversification, risk appetite, and the overall economic climate when households decide where to place their funds.