Russians withdraw $15.2 billion from term deposits over this summer Counter to last year's statistics

In June-August 2022, Russians' money amount on term deposits fell by 881 billion roubles ($15.2 billion), while balances in people's savings accounts increased by 1.966 trillion roubles. By comparison, over the summer of last year, the volume of citizens' funds on term deposits increased by 1 billion roubles.

Due figures are reflected in the data of the Central Bank, Gazeta.Ru reports.

Maxim Osadchy, head of the analytical department of BCF Bank, commenting on the statistics of the Bank of Russia, said that the main reason for the trend is the reduction in interest rates on term deposits. Under these conditions, savings accounts are becoming more attractive for Russians, because it is possible to withdraw money from them at any time without losing interest.

"In the summer of 2021 and the summer of 2022, there were processes of interest rates reduction on term deposits. This led to a decrease in their popularity and an inflow of funds to savings accounts. At the beginning of June 2022, the rouble deposit rate of the top 10 banks stood at 9.09 per cent per annum, while in late August it was already at 6.83 per cent. With low-interest rates, savings accounts become more attractive than term deposits. After all, money can be withdrawn from savings accounts at any time with virtually no loss of interest. Panic, a significant outflow of funds from the banks was in late February and early March. Now, this trend no longer exists," Osadchy said.

According to the Central Bank, the outflow of money from term deposits amounted to 834 billion roubles in June 2022. In July, there was a small inflow of funds - 49 billion roubles. In August, the Russians withdrew  96 billion rubles from term deposits. In June 2021, the outflow from term deposits was 152 billion rubles. Russians then deposited 6 billion in July and 147 billion in August.

Earlier, RBC, citing the Central Bank data, reported increased demand of Russians for cash on September 22. Their volume in circulation on Thursday increased by 132.1 billion roubles. Experts polled by RBC suggested that the surge in demand for cash came amid news of partial mobilisation in Russia.