The push to remove the tax on long-term deposits is expected to shift saver interest over time, though the effects won’t be felt instantly. Maria Tatarintseva, who oversees the Deposit product at Sravni, spoke about this issue in an interview with socialbites.ca and weighed in on the Russian Ministry of Finance’s proposal to abolish the long-term income tax. She noted that this change would influence Russians who place money in term deposits and watch their earnings grow over the years.
This year marks a turning point: for the first time, tax on income from deposits will be payable. The expert points out that once investors see how their profits accumulate, many will begin exploring strategies to minimize tax leakage and preserve more of their gains. In other words, the tax shift could spark a broader reevaluation of how households allocate funds into fixed-term accounts.
Short-term deposits, however, are unlikely to shed their appeal. They remain popular for a variety of reasons, and the presence of a tax on longer-term savings carries little weight when choosing the next deposit. Tatarintseva explained that short-term deposits are selected primarily because the rates on these accounts tend to be higher than those on longer-term products, and because shorter terms offer greater flexibility in managing funds. This flexibility often appeals to savers who value liquidity and the ability to respond quickly to changing financial needs.
Current market conditions in Russia show maximum rates on short-term deposits reaching about 16.5% for a three-month term, around 17.5% per year for a six-month term, and roughly 17% per year for a one-year term. For longer horizons, such as three years, deposits can offer rates around 16.2% per year when opened for a multi-year period. Yet despite these competitive yields, the share of Russians who plan to open deposits for more than a year remains relatively small, not exceeding about 7 percent of investors. This reveals a cautious approach among savers who weigh the benefits of higher yields against the commitment of longer terms and the potential tax implications that accompany them.
Beyond interest rates, Tatarintseva emphasized the importance of deposit protection. In Russia, all funds up to 1.4 million rubles held in a single bank are insured by the Deposit Insurance Agency. She noted that there are no restrictions for serial depositors who place money in multiple banks; all their deposits can be covered by DIA insurance as well. This safety net remains a key factor in the decision-making process for many savers who want to shield their savings from idiosyncratic bank risk while pursuing favorable yields.
In the same policy conversations, Deputy Chairman of the Federation Council Dmitry Zhuravlev supported the idea of the Ministry of Finance of the Russian Federation to abolish the income tax on long-term deposits, arguing that such a move would encourage citizens to invest with a longer horizon. The proposal was first floated by the ministry in September, but lawmakers have yet to reach a final decision. The debate continues to center on how best to balance tax policy with incentives for saving and long-term investment, all while maintaining financial stability and protecting consumers’ interests.
For many Russians, the sum traditionally considered as savings represents more than a cushion for emergencies. It serves as a pathway to future goals, such as education, housing, or retirement planning. The current discussions on tax changes and deposit insurance schemes shape how families plan their finances, what kinds of accounts they open, and how they allocate risk across different financial instruments. The evolving policy landscape invites savers to reexamine their portfolios, ask tough questions about liquidity versus yield, and consider how regulatory changes might influence their long-term financial security. Industry analysts point out that the implications are not limited to today’s balance sheets; they also affect how households project future cash flows, debt management, and overall economic resilience. In short, the debate over long-term deposit taxation is about the framework that supports prudent, long-horizon saving—and how policy can align incentives with real-life financial needs.”
As these conversations unfold, savers in Russia—and those observing from international markets—will watch how these proposed changes translate into behavior. For Canadians and Americans who rely on diverse savings strategies, the dialogue underscores a universal truth: tax policy and deposit guarantees can significantly reshape how households approach risk, time horizons, and the expectation of returns over time. The evolution of deposit-related regulation remains a critical factor for personal finance planning in North American contexts as well, where tax treatment and deposit protection interact in meaningful ways with the broader investment landscape.
Notes from market observers emphasize that while higher yields on short-term deposits attract attention, the overall decision calculus weighs multiple factors: tax treatment, insurance coverage, deposit flexibility, and the perceived stability of the financial institutions involved. The long-term tax proposal has sparked discussions about how best to preserve savings incentives without compromising financial system integrity. In the weeks and months ahead, many savers will likely monitor official announcements, bank communications, and expert analyses to gauge how these policy shifts will influence their choices and the structure of their savings portfolios across Russia, Canada, and the United States.”