Banks following the Central Bank reduce rates on ruble deposits

Leading Russian banks are going to once again cut deposit rates following the reduction in the refinancing rate by the Bank of Russia, Forbes reported. Two banks out of ten leading ones told Vedomosti that they plan to reduce profitability on mortgage deposits, the other two representatives spoke about their readiness to cut profit on ruble deposits.

Before the regulator’s board of directors meeting, the rate of decline in profitability on ruble deposits increased in some credit institutions. For example, on February 7 Alfa-Bank reduced the yield on deposits in rubles by 0.2-0.8%. Clients who don’t use other products of the organization and open a deposit in the amount of 5 million rubles or more for a period of 3 years will receive a yield of 4.8% per annum.

The press services of FC Otkritie, Sovcombank and others noted that they also plan to gradually reduce the profitability of deposits. Sergey Khotimskiy, Deputy Chairman of the Board of Sovcombank, specified that the maximum rate for the next six months will not exceed 5.5% per annum.