Georgy Ostapkovich, scientific director of the HSE Center for Business Tendency Studies, warned Russians to be cautious with high-yield bank deposits. Speaking to Radio KP, Ostapkovich said consumers must remain vigilant when opening accounts that advertise extra high returns.
The analyst explained that deposit products offering annual interest rates of up to 30 percent almost certainly include extra conditions and restrictions. Ostapkovich added that banks often hide these clauses in fine print so they do not scare potential clients away.
Ostapkovich urged savers to inspect every agreement protocol thoroughly before signing any contract. He noted that while interest rates of 19 percent and even 30 percent have started appearing in the market, customers must check all contractual terms.
Market Conditions and Central Bank Policy
Deposit rates have gradually decreased amid ongoing monetary policy easing by the Central Bank of Russia. At the end of July, the average maximum deposit rate across the ten largest Russian banks by capitalization stood at 12.85 percent per annum, compared to a key policy rate of 14 percent.
However, analysts doubt financial institutions will make sharp rate cuts in the medium term. Vladimir Eremkin, a senior research fellow at the laboratory of structural research at the Presidential Academy, said banks risk facing a massive outflow of client funds if they reduce deposit rates too aggressively.
