The governor of the Central Bank of the Russian Federation, Elvira Nabiullina, has proposed raising the level of insurance compensation for long-term bank deposits. She announced this initiative in a speech delivered at the International Finance Congress, with the full text published on the event organizer’s site.
She explained that long-term deposits remain relatively rare because banks rely on short-term funds. To secure stable long‑term financing, banks need to attract liabilities with longer horizons. Among the incentives she suggested is increasing the insurance payout for long-term deposits above the level offered for standard deposits, a measure that could make longer commitments more attractive to savers.
Nabiullina also indicated that banks should pay a smaller contribution to the deposit insurance fund for long-term deposits, arguing that longer maturity profiles reduce the risk of sudden withdrawals and help stabilize the funding base.
In her remarks, she emphasized that the core aim of any such incentives is to extend the lifespan of deposits by ensuring price stability and by addressing concerns that savings could be eroded by inflation over time. This, she noted, would reassure savers about the durability of their funds in the face of inflationary pressures.
Deposits are insured by the Deposit Insurance Agency. In the event of a bank license cancellation, the insured deposit amount up to 1.4 million rubles is fully refunded to the depositor. Presently, interest rates on deposits in Russian banks are reported to be in the range of 10 to 13 percent per year.
Long-term deposits are defined as those with a maturity exceeding one year, a category that includes a broad spectrum of savings products designed to lock in funds for more than a year while offering varying yields and terms.
For readers seeking additional context on saving strategies and money growth in recent years, previous analyses have explored practical approaches to preserving and increasing wealth in a changing economic landscape, reflecting ongoing discussions in the financial community.