Russian banks will soon lower rates on deposits in foreign currency. This is evidenced by a survey of financial institutions conducted “Tape.<url>.
Citibank said that the interest rates will fall on Tuesday, August 30. The credit company declined to specify how much lower the yield. Her representative noted that “the rates will be reduced slightly”. On 28 August the minimum rate for dollar deposits with Citibank were 0.10 per cent, on Euro deposits — 0.05 percent.
Head of the center savings, payment and Commission products OTP Bank Paul complex Department also said that a credit institution will reduce the profitability of exchange products. “We expect lower rates in dollars and euros from September 5 in the amount of 0.1-0.9 percent,” he said.
The Deputy Director of Department of retail business development Svyaz-Bank Natalya nalivkina said that roughly at the beginning of September the financial organization will reduce the rate by about 0.2 percentage points.
Thus, VTB 24, Alfa Bank, ROSBANK, Raiffeisenbank, Ural Bank for reconstruction and development, and also “UniCredit” and don’t plan to reduce rates on deposits in dollars and euros.
“I do not exclude that at preservation of current trends, within 2-3 years, large Russian banks will be introduced for large customers at a zero rate on foreign currency deposits, adopting the practice of the European credit institutions”, — noted in conversation with “<url>” financial analyst group of companies “Finam” Timur Nigmatullin. He recalled that in 2016, the Swiss Alternative Bank Schweiz have introduced a rate of minus 0.75% on deposits to wealthy customers (with accounts worth more than 100 thousand francs). “Rich people will still be profitable to keep funds in the Bank, because the cost of storing cash in safety Deposit box will be still higher — up to 1-2 percent per annum,” he said.
On August 25, the Deputy Chairman of Sberbank Alexander Morozov said that a credit institution may reduce rates on foreign currency deposits. In April, Morozov said that in 2016, the Bank may reduce interest rates on foreign currency deposits “hundredths of percent”. “To rates below zero we are mentally not ready yet”, — he noted.
