In an interview conducted for the agency Hit the primer, financier Lazar Badalov discussed the irrevocable savings certificate proposed by President Vladimir Putin as a potential alternative to traditional bank deposits. He noted that this instrument could attract savers who are looking for stability and clearer terms, especially in a climate where conventional deposits have faced growing restrictions.
Badalov explained that the proposed certificates would come with insurance coverage from the Deposit Insurance Agency at a level of 2.8 million rubles. This amount is higher than the standard insured limit for ordinary bank deposits, offering additional reassurance to investors who want to safeguard their capital. Banks are expected to provide a higher interest rate on these certificates, with the rate fixed for the entire term of the instrument, ensuring predictability. For example, a three-year rate set at 15 percent would stay fixed for the entire three years, shielding holders from fluctuations in rates during the term.
The financier added that the appeal of savings certificates would grow if lawmakers decide to tax the income they generate in the same way as other investment earnings, a move that could affect the net return but provide a clearer framework for taxation and planning. This would be an important factor for individuals weighing the overall benefits of holding such certificates against other savings or investment options.
Earlier in the year, Putin, in a message to the Federal Assembly, spoke about broadening guarantees for retirement savings and for individual investment accounts IIAs, signaling a push toward stronger protection and clarity for long-term wealth accumulation. These guarantees, intended to bolster confidence in retirement planning, align with efforts to create a more stable savings environment for citizens and investors alike.
Previously, Sberbank announced that it was prepared to explore the development of an irrevocable savings certificate, indicating that major financial institutions are ready to participate in this potential new instrument. Banks emphasizing their readiness suggests that the market could quickly adapt if a legislative framework supporting these certificates is established.
Source attribution: Hit the primer