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Return on deposits is inferior to the rate of inflation

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Banks are reducing deposit rates: in a number of major banking organizations they have fallen below the key level. The yield on such deposits is inferior to the rate of price growth.

According to the Central Bank, by the end of April, the average rate on deposits in Russian banks fell from 16% to 11-13%. At the same time, the inflation rate is almost twice as high: 22% year on year. Such conditions leave the yield on deposits in the negative zone.

In the previous few years, income on deposits exceeded the rate of inflation. Experts say that under such conditions, deposit portfolios will grow slowly, and banks will have to turn to the regulator for liquidity. According to them, by the end of the year, the maximum rates on ruble deposits will drop even more, to 10% per annum. At the same time, inflation rates in Russia are not yet expected to slow down.

Representatives of Tinkoff say that ordinary ruble deposits are still generating income, but only in the short term. The Central Bank continues to reduce the key rate, and with it, the conditions for deposits, as well as for federal loan bonds, become less favorable.

In the coming weeks, the release of funds is expected, which at the beginning of spring was invested in three-month deposits at 20% per year. Investors will have to look for more profitable ways to invest these funds. Interest in deposits at the moment remains only due to the minimum levels of risk in comparison with other types of investments.

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