At the Eastern Economic Forum, Georgy Gorshkov, the vice president of the Russian bank and the chairman of its board of directors, noted a clear shift in how Russians are saving. He observed that the majority of new deposits, about 65 percent, are being opened for a term ranging from six months to a year. This behavior signals a willingness among savers to commit money for a longer horizon, rather than chasing fleeting returns. Gorshkov spoke to reporters about this trend, highlighting the growing preference for stability and longer-term planning in a period marked by inflationary pressures and uncertain market conditions.
VTB’s perspective aligns with broader industry observations: deposits with medium-term maturities, specifically six months to one year, are poised to displace the share of short-term deposits that previously dominated the market. The bank sees this shift as a natural reaction to the current regulatory and macroeconomic environment, where institutions adapt their product offerings to match evolving customer expectations and risk assessments. The focus on medium-term products reflects a strategic movement toward balancing liquidity needs with the pursuit of better rates over a manageable time frame.
Gorshkov explained that the regulator has effectively signaled a cautious stance on monetary easing given the present economic backdrop and inflation trajectory, at least through the end of the year. As a result, financial institutions have begun rechanneling the emphasis of deposit pricing from shorter durations toward the more attractive terms of six months to twelve months. This recalibration aims to preserve consumer confidence while ensuring banks maintain prudent balance sheets in response to the rate environment and regulatory guidance.
The trend is measurable. Since the start of the year, the share of deposits in the medium-term band has risen by about 13 percent, illustrating a tangible shift in saver behavior. Within VTB’s own portfolio, the preference for longer commitments is even more pronounced. Gorshkov noted that approximately 70 percent of the bank’s new deposits fall into the medium-term category, with short-term deposits shrinking to around 13 percent. This contrast underscores the bank’s observation that customers are increasingly choosing to lock in rates for a longer period rather than chasing short-lived advantages.
There is also a behavioral element behind these numbers. Up to mid-year, there has been a notable decline in customers who routinely move funds between banks in search of immediate, maximum yields. A growing proportion of savers appear to value steadiness and predictability over the prospect of occasional higher returns that come with frequent fund relocation. In practical terms, this means fewer frequent transfers and more focus on reliable, steady growth of savings, as households and businesses plan for the medium term and consider how inflation and interest rates might evolve over the coming quarters.
Gorshkov highlighted that the market appears to have reached a state of equilibrium. The brisk, sometimes abrupt shifts in deposit strategies that characterized earlier periods have softened, with participants showing greater tolerance for moderate, well-structured offers. This evolving balance helps reduce volatility in funding costs for banks while giving savers a clearer sense of what to expect from term deposits. It is a scenario that supports financial stability and gradual adaptation to a changing rate landscape, rather than chasing quick, high-yield moves that may not be sustainable in the longer run.
Looking back, the historical comparison reveals how deposit preferences have evolved. In 2023, the market leaned toward six-month to one-year withdrawal windows, yet this segment’s share hovered around 40 percent, signaling a cautious but growing appetite for medium-term commitments. By contrast, 2022 saw a faster uptick in short-term deposits from three to six months, reflecting a previously more volatile environment and a tendency among customers to react swiftly to rate fluctuations. The current data therefore illustrate a gradual rebalancing, with a clear tilt toward longer-term placements as the economic conditions evolve and the regulatory context remains in focus.