The maximum rate on ruble deposits fell a record

the Average maximum interest rate on ruble deposits in the 10 largest Russian banks in the first week of June decreased to 5.01%, according to the Bank of Russia.

Rate in the third decade of may was up to 5,04%, and the second is 5.4%, the first — of 5.51%. Rates on foreign currency deposits from 2019 remain at a low level.

Rates on deposits and loans reduced or are growing after the decision of CBR to lower or raise the key rate. Recently, the Central Bank has committed to lower rates and thus lower rates on deposits and loans. CBR 24 April 2020 cut the key rate by 0.5 percentage points to 5.5% per annum.

Sberbank predicts the reduction of the key rate of the Central Bank to 5% in June to 4% by the end of September. Investment Bank Goldman Sachs expects a decline in Bank of Russia key rate to 3.5% Central Bank in June will reduce the key rate by 1% in July and 0.5% in the first quarter of 2021 year — another 0.5% to 3.5%.

May holidays has caused an outflow of deposits in Russia for the month of 0.1%, or about 31.5 billion RUR 31.48 trillion RUR on may 1, 2020. But the outflow of savings deposits is not exceeded the withdrawals from the accounts at the beginning of the crisis, said the Bank of Russia. “More spending because of the holidays, and lower incomes due to less number of working days, especially for people on a piecework payment”, — explained the press service of the regulator.

In March 2020, the Russians withdrew more cash than all of 2019 – RUB 1 trillion in cash because of fears of Bank closures for the duration of the quarantine. However, the stock accumulation was so great that the total volume of funds of individuals in banks located in rubles, increased in March by 0.01% (19.9 billion rubles) and amounted to RUB 24,522 trillion Outflow of long-term ruble deposits for March totaled 224,5 billion RUB, However it compensated for the inflow of funds, oncealigned in demand Deposit accounts and deposits of up to one month.

In April, the resumed growth of deposits after the crisis of March and continued to increase lending to companies, according to a review of the Central Bank “On the development of the banking sector of the Russian Federation in April 2020”.

the Deposits of Russians on Bank accounts grew by 371 billion rubles (+1,2%) after outflow in March (-315 billion rubles., or -1.0 per cent). In April 2020, net profit of banks fell 6 times to RUB 32 billion in comparison with March.