How to choose a bank for a deposit: set a goal and define criteria

What affects profitability

Before setting the deposit rate, banks evaluate:

• the level of inflation in the country;
• the growth rate of investments in banks from the population and legal entities;
• competition between banks in offering deposit programs;
• the key rate set by the Bank of Russia;
• outflow of foreign investment from the country;
• changes in legislation that relate to deposit accounts.

All these indicators directly or indirectly affect interest rates. In addition, the rate increase may be influenced by the internal situation in the bank. So, for example, if a company needs money, then it offers more attractive conditions for investors compared to its competitors. Customers with high rates are more willing to make deposits, and the bank receives an additional influx of funds. Also, increased rates help small financial companies compete with large holdings and corporations.

The profitability of an investment on a bank deposit most often depends on:

• currencies - the most attractive rates in Russia on ruble deposits, they reach 7-8.5%, rates on foreign currency deposits do not exceed 1-2.5%;
• the size of the deposit, most often, the larger the amount, the higher the income, but this rule does not always work;
• the investment period, the longer the period, the higher the profit, but, as with the amount, banks do not always work according to this scheme;
• additional options - the possibility of preferential early termination, addition or partial withdrawal, capitalization or withdrawal of interest.

The Central Bank obliged banks to accrue interest on deposit accounts daily. In the case when interest is not capitalized, that is, not added to the total amount of the deposit, then it is paid to the client according to the terms of the agreement. For example, monthly, quarterly, semi-annually or annually.

How to compare different deposits

It is clear that most people consider the interest rate to be the most important indicator for comparison. But no less important are the indicators that we have already discussed in the table above: the ability to withdraw money and top up your account.

The level of income you will receive on your deposit primarily depends on the rate. If you open a deposit in foreign currency, you will receive less income, if in rubles, you will receive more. Rates on foreign currency deposits are always lower than on ruble deposits.

Separately, we note that opening deposits without visiting a bank office, online or through an ATM, is currently becoming increasingly popular. Some banks offer a percentage slightly higher than the standard for such an opening. We also already wrote about this in the article.

If you read the recommendations of various experts, they note that you should not give priority when choosing a deposit to such an indicator as the interest rate. It happens that their high level hides a big risk or completely unfavorable conditions. The rate indicated in the advertisement is actually lower.

There is another criterion for comparison: the size of the minimum and maximum contribution amount. It cannot be said that it plays a big role, but it is worth paying attention to it, since the minimum contribution is associated with expense transactions. In simple terms, this means that if you withdraw funds partially, this amount should remain in the account.

You cannot withdraw money more than this amount; you will lose everything that was credited. This is especially important for investors who have small amounts of funds and invest them in order to withdraw the maximum at any time.

What is the maximum bet to aim for?

Until 2012, the Central Bank of the Russian Federation advised banks not to set interest rates on household deposits higher than 2% above the base rate. Since 2014, the difference could have been higher by 3.5%. In 2020, companies were allowed to increase the rate by any number of points if transfers to the Deposit Insurance Fund were increased. Therefore, for a riskier policy, banks contribute:

• if the difference between the interest on the deposit and the Central Bank rate is minimal, then the Fund deducts 0.15% of the average quarterly balance of the total amount of deposits placed;
• if deposit conditions for clients exceed the key rate by 2-3%, then the bank pays 0.225% at a special rate;
• If the loan rate is increased by 3% or more, the bank makes an additional increased rate; it can reach 5 times the base rate.

To understand how this will affect the investor, consider an example:

• the key rate set by the Central Bank for January 2020 is 5.25%:
• permissible excess - 3.5%:
• accordingly, the maximum possible interest rate today, for which the Central Bank of the Russian Federation will not charge additional payments for risks: 5.25 + 3.5 = 8.75%.

If a bank offers deposits at higher interest rates on deposits than 8.75%, then either the company is conducting risky transactions, or it is in dire need of raised money. In neither case nor in the second is it worth considering the offer of such a bank, even if it is part of the deposit insurance system.

Although it is worth noting that amounts up to 1.4 million rubles are under state protection and will be returned to the investor in any development of events. Therefore, you can make a deposit that does not exceed this amount. But whether you will be able to quickly get your money if a moratorium is introduced, a license is revoked, or the company goes bankrupt is a big question. But not everyone will agree to risk their nerves and time.

As of January 22, 2020, 722 participating banks are registered in the deposit insurance system, of which 6 banks are deprived of the right to attract new deposits. On the same day, 293 banks were excluded from the CER.

The best banking offers

Interest rates on bank deposits are constantly changing. They are set by the Central Bank of our country in the same way as the inflation rate.

For detailed information on deposits and banks, you must go to the website www. banki.ru. According to this site, the best banks for opening deposits are:

1. Bank of Moscow - interest rate is 10% per annum.
2. Opening - 10% per annum.
3. VTB-24 - 8.5% per annum.
4. Binbank - 8.3% per annum.
5. Sberbank - 7% per annum.

It is these banks that offer their clients to deposit money at interest on favorable and convenient terms with a fairly high final increase to the principal amount.

In what currency should the deposit be made?

The overwhelming majority of Russians receive money in the national currency - Russian rubles. Therefore, a ruble deposit is the most logical for them. Bank offers in this sector are also much broader than in foreign currencies. In addition, foreign currency deposits, as noted above, have lower returns.

If savings have already been converted into foreign currency or money comes from abroad, then it makes sense to open an account for savings in dollars or euros. Otherwise, you can lose all the benefits from exchange rate differences.

To open a deposit, you will need a passport, on the basis of which an agreement will be concluded. Some banks allow you to make a deposit through Internet banking online or in a mobile application. Certain companies offer bonuses and an additional increase in the interest rate when opening a deposit in this way.

What types of deposits are there?

In order to attract a large number of clients, banking organizations are constantly expanding their line of deposits, adding more and more new ones. We will now look at the most popular types of deposits for us – ordinary people.

All deposits can be divided into 2 categories: time deposits and demand deposits. Term deposits are opened for a specific time; demand deposits do not have a specific period.

Deposits from the category of fixed-term deposits can also be classified into subtypes:

Savings.

It is worth noting that the highest rates are for this group. In addition, it is not always possible to withdraw money from such deposits or to deposit funds into the account.

Calculated.

Thanks to the presence of such a deposit, you can control your finances and manage your savings. This type of contribution is also called universal.

Cumulative.

Provided for those clients who plan to replenish it throughout the entire term of the deposit. They are most often used by people who save up for expensive purchases.

Special.

These are deposits that are offered to certain groups of clients. This includes deposits for students, pensioners, and so on.

By season.

Timed to coincide with a certain time of year. They often have fairly high rates, but there is no rollover option.

Mortgage.

Designed for those who want to independently save for a down payment on a mortgage. They can be replenished, but cannot be renewed automatically.

Part of the funds or the entire amount immediately after the end of the contract will be used to pay the mortgage premium. Now in the Russian Federation such a deposit is not found in all banking institutions.

Indexed.

This deposit belongs to the category of fixed-term deposits and is tied to changes in the value of an asset. The asset can be the dollar exchange rate, securities, precious metals, etc.

Multicurrency.

The point of such a deposit is that the funds are stored in various currencies: most often rubles, euros and dollars. There is, of course, the opportunity to store money in more exotic currencies, but this is rare.

The main advantage of this type of deposit is the ability not to lose profitability and transfer funds from one currency to another. This is called conversion. As a rule, they do not charge a commission for it, but the rates here are lower than for other types of deposits.

Children's.

Opened in the name of a child who is not yet 16 years old. The contribution is targeted.

Numbered.

A person deposits funds into it only in cash. When opening such a deposit, the client can count on complete anonymity of his account.

Typology of deposits and their advantages

In addition to the fact that deposits differ in currency, they are:

• urgent;
• poste restante;
• replenished;
• non-replenishable.

Time deposits are issued for the period established by the agreement. They have more attractive conditions than demand deposits. But with early withdrawal of money, the investor loses a large amount of accumulated income. In this way, the bank encourages clients to keep money in their account until the end of the program.

Time deposits are issued for 1-5 years, less often for several months. For longer terms, banks may offer more favorable conditions, but not necessarily. If this is the most long-term deposit, the bank can insure itself against inflation and other risks and set a rate that is not the most favorable. Therefore, for those who want to invest money on a long-term basis, it is more convenient to choose the most profitable deposit for today, and then renew it or change it to a new program.

Demand deposits can be withdrawn at any time. Therefore, their rates are less attractive and rarely exceed 1%. The return on the deposit is so meager that it does not even cover the level of inflation.

Replenishable deposits assume that the depositor will be able to add funds to the account. These can be strictly specified amounts, a specific percentage of the down payment, or any amounts that the client wants to contribute. Depending on the terms of the agreement, the interest rate also changes. Such deposit options are the most attractive for savings. Some banks allow not only incoming, but also outgoing transactions within the limits of these additional replenishment amounts. But more often than not, interest rates on this type of deposit are less attractive than those on non-replenishable deposits.

Non-replenishable time deposits are characterized by the most favorable conditions. In this case, the bank knows exactly what amount and for what period it is managing, therefore it offers the highest interest rate. However, if there is an emergency withdrawal before the end of the term, the profitability of the program will be significantly lower. Therefore, you should assess in advance the need for money and the period when you can actually do without the amount placed on deposit.

What are your goals?

Among the numerous tools for storing and increasing money, bank deposits are one of the most popular, but far from the most profitable.

Financial experts are unanimous in the opinion that on a deposit you, at best, protect your savings from inflation and, with a successful investment, earn a little from interest. But nothing more. Unless, of course, you deposited several tens or hundreds of millions of rubles into your account. Then even the smallest percentage will allow you to receive passive income and live comfortably on it.

This is the first point you must understand. Why open a deposit if you can’t make money on it? It all depends on your goals:

• Keeping money outside the home. It is safe and profitable in any case. Inflation will devalue them in a year, and thieves can completely deprive you of your hard-earned savings in one day.
• Creating an emergency reserve that every family should have in case of force majeure situations (illness, accident, loss of job, etc.) The main requirements for the reserve fund are availability at any time and mobility. A bank deposit with deposits and withdrawals is an excellent solution for this.

Experts recommend sticking to the following emergency fund sizes - from 3 to 6 of your monthly expenses. For example, if my family spends about 50,000 rubles a month, then we should keep from 150,000 to 300,000 rubles in reserve.

• Saving funds for an expensive purchase. It is more convenient to save on a bank deposit for a period of up to 1–2 years. You save a certain amount of money every month, and after a few months you make the necessary purchase.
• Accumulation of initial funds for investment. If your plans include not just saving money, but also managing it through investments, then they require a certain initial capital. Financial consultants recommend starting with an amount of at least 50,000 rubles, or better yet, even more. A bank deposit is an ideal place to create this initial capital.

And the last thing I want to say in this section. Accumulating just for the sake of accumulation is a complex process that not everyone manages to accomplish. But when a person has a goal, then everything becomes much simpler.

Psychologists advise to be sure to visualize your goals and dreams. Write them on colored stickers and hang them in a visible place: refrigerator, mirror, etc. The only mandatory rule: the goal must have a specific description, amount and deadline for achievement. For example, a trip to Greece in July 2020 with the whole family, the required amount is 150,000 rubles. Or renovation of an apartment in January 2019, amount – 100,000 rubles.

For each purpose, make a separate deposit. And when you're tempted to spend money on unnecessary purchases, look at stickers.

Rating of the largest banks in the Russian Federation by individual deposits for 2020

TOP 10 largest banks in Russia in terms of deposits from the population and the dynamics of this indicator for 2020 looks like this:

From the above data it is clear that even large Russian banks offer competitive offers on deposits. And cooperation with market leaders provides maximum benefits for the investor. Attractive rates at Gazprombank, FC Otkritie and MKB in 2020 allowed companies to show the highest growth in deposits. The companies decided to continue the strategy and in 2020 they maintained attractive interest rates.

How to secure your deposit: expert opinion

When the ruble exchange rate starts to jump, our people usually rush to buy foreign currency, preferring to keep their savings in dollars, euros, pounds or Swiss francs. Although today there is no exact understanding of what the fall of the ruble will be, experts believe that it is not advisable to transfer all of your savings into foreign currency at this stage. This should have been done in 2020 with a stable exchange rate.

Today, currency exchange should be done only when absolutely necessary. Dollars are exchanged for rubles when money is needed for current expenses, rubles for foreign currency - if you have to go abroad or need to pay for a foreign currency loan. Experts advise against making drastic manipulations with money. At this stage, task number one is to preserve the financial safety net as much as possible.

It is possible to switch to securities in 2020, but those who have not done so before and do not understand the intricacies of the stock market may fail. To play on stock prices, you need to delve into economic and political processes and monitor quotes. Otherwise, it is better not to get involved with this method of investment.

In 2020, it is better to avoid risks and use time-tested investment options:

1. Long-term deposits in foreign currency. The main condition is a reliable bank, a member of the Deposit Insurance Agency.
2. Real estate. Its price rises with inflation. Experts recommend purchasing housing abroad and then making money by renting it.
3. OFZ-IN bonds. They are issued by the Ministry of Finance of the Russian Federation. There are medium-term and long-term securities. Their cost is indexed and calculated taking into account the consumer price index for goods and services in Russia (data published by Rosstat). The advantage of such bonds is the receipt of profit, which is 2.5% higher than inflation. Coupons are cashed twice a year.
4. Eurobonds. They are denominated in dollars. They are issued by the state or companies. Profitability - 3–5% per annum.
5. Precious metals. Great option for 2020. Investments in gold will allow you, if not to earn money, then certainly to protect your savings from inflation. Gold is valued in dollars, and if the ruble starts to fall again, your funds will avoid losses.

Experts advise dividing capital into 3-4 parts and using each of them differently:

• keep some in rubles (you may always need them);
• part - in currency (one or more);
• transfer part of the money to a dollar deposit;
• use the rest of the money to buy gold.

You can use other options for storing money, the main principle is not to bet on one thing. In an unstable economic situation, this can lead to financial collapse.

The best bank deposit offers for today

The most favorable offers on deposits today are not found in the largest banks, although some companies from the TOP 10 are also included in the list of the best conditions. But traditionally, it is small financial institutions that create the products with the highest interest rates.

Short term

The best short-term offers of Russian banks on deposits for the population today are summarized in the table:

Medium term

The highest interest rates on medium-term deposits in banks today look like this:

Long-term

The most profitable long-term bank deposits today:

Most of the deposits listed in the tables are not traditional deposits, but individual investment accounts. Therefore, in order to receive such profitability, the client will need to comply with a number of conditions, for example, open an individual investment account, entrust management to a certain Management Company. Some banks approve increased deposit rates if you have a promotional code or a life insurance policy from a specified insurance agency.

Also, the interest on the deposit is affected by the inclusion of additional options - the ability to replenish, partially withdraw, early terminate the deposit agreement on preferential terms. Some program options offer the option of paying or capitalizing interest. Details of the conditions for each deposit and the most favorable interest rates for today can be found on the official website of the banks or clarified by calling the hotline.

Remember that when choosing a bank for a deposit, it is important to compare not only the interest rates, but the duration, convenience of the program, and the availability of preferential termination. Look for information about the company's rating, especially if it is small or has not been on the market for very long. Check the bank's participation in the deposit insurance system and for your own safety, do not place amounts exceeding 1,400,000 rubles in one institution.

about the author

Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]

Is this article useful? Not really

Help us find out how much this article helped you. If something is missing or the information is not accurate, please report it below in the comments or write to us by email

Comments: 0

Your comment (question) If you have questions about this article, you can tell us. Our team consists of only experienced experts and specialists with specialized education. We will try to help you in this topic:

Author of the article: Klavdiya Treskova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya