The reasons for the temporary rate increase from Sberbank

While other banks reduced deposits, Sberbank announced a temporary increase. Analysts say that such actions are connected with current liquidity, which was triggered by the decline of deposits from the population on 356 billion, or 2.6%.


Today, February 19, 2020, the maximum rate on retail deposits Sberbank is Russia's largest in terms of deposits of natural persons will temporarily increase by 0.5 percentage points to 5% per annum. This condition will apply to promotional contribution “Catch the spring”, a period of five months. Open the promotional contribution will be from 19 February to 14 March inclusive.


Currently, the maximum rate on deposits for physical persons in the savings Bank is in the order of 4.5% per annum and is available for amounts from 400 000 rubles with maturity of 6-12 months.


Special attention should be paid to the fact that Sberbank's decision is contrary to the General market trend of declining interest rates on Bank deposits after the reduction of the key rate of the Central Bank. In addition, Deposit rates continuously decrease from the third decade of September. The Central Bank has published information stating that in the first decade of February, the average Deposit rate is 5.49 per cent. This is a new historical record.


At the last meeting of Directors of the Central Bank, which occurred on 7 February, the regulator lowered the key rate for the sixth consecutive time by 0.25 percentage point to 6% - and suggested the possibility of its further decline. In the savings Bank the last time interest rates on savings system declined in January by 0.1–0.25 percentage points from 2.95–4.65% to 2,7–4,5% depending on the amount and term of placement.


Vyacheslav Putilov, who is the youngest Director on Bank ratings “Expert RA” said, “most likely, the action of the savings Bank connected with the management of current liquidity. May ended term involvement in portfolio of deposits and five months to replace the outgoing volume, the Bank launched a marketing campaign. Since January, the volume of deposits in the Bank decreased by 2.6% to 13,269 trillion rubles.”


But the Deputy Director of the group ratings of financial institutions of an ACRE Mikhail Polukhin specifies that in addition to the maximum bet the timing is not yet indicated, however, the duration of 5 months talking about the possible need to increase the involvement of client funds for up to six months, but with the rate of 5% in any case not looks very high against the proposals of other banks.


Polukhin says, “in General, in 2019, the volume of deposits of physical persons the savings Bank has increased, while the share of the market declined slightly. The same dynamics were in December: 1 December 2019 1 January 2020, the savings Bank there was a small inflow of deposits of physical persons against the background of outflow of funds of other customers about 15%. However, if necessary, the Bank is able to increase the attraction due to the minimum rate increase that is not much impact on its margins”.