Time to fix the profitability of banks has lowered rates on long deposits

Over the past month — from 10 June to 10 July rates on ruble deposits in the top 15 largest banks fell. Hardest — 0.31 p. p. decreased the yield on three-year deposits. Average maximum rate on annual deposits, in turn, decreased by 0.27 p. p. This is slightly more than in the previous months: in may, in April the yield on such deposits fell by 0.2 percentage points it is Noteworthy that yields of short-term deposits for the first few months has changed slightly: on deposits on one and three months it fell by 0.2 percentage points for two months — only 0.02 p. p.

Strong reduction of interest rates occurred in Alfa-Bank: the return on its deposits for all terms fell by 1 percentage point, to 7.5%. The only exception was the contributions for three months: rates remained unchanged. For the first time since April lowered rates and savings Bank: deposits for periods ranging from one year to three years the yield fell by 0.7 percentage points, the Bank “Opening” has reduced the profitability of deposits for the same period by 0.5 percentage points the Rates on short-term deposits in the savings Bank, and the Bank “Discovery” has changed imperceptibly.

The fact that interest rates on short-term and long-term deposits falling due to various reasons, says senior analyst of the research group and prediction ACRE Dmitry Kulikov. On the profitability of short-term deposits to a greater extent affected by the fact that the banking system is becoming more money, he explains. But the interest rates on deposits for a term of years rather tied to the inflation expectations, continues Kulikov. He suggests that in the third quarter of 2016, these expectations will decrease.

Rates on ruble deposits will continue to fall, head of certain cumulative services of the Bank Anna Tarasenko. With this agrees the Director of the Department of sales division network of Absolut Bank Ivan, Atlas of the major species. According to him, the most reduced rates on medium-term (9 months) and long-term deposits.

Atlas of the major species, suggests that by December 2016, the annual yield of the deposits may be reduced by 0.5–1%. the same forecast gives Tarasenko from the Bank. Sandpipers of ACRE expects that by the end of the year rates on annual contributions could fall by 1 percentage point or slightly more. It is a natural consequence of reducing the rate of inflation, he explains. Nevertheless, the Atlas of the major species of Absolut Bank does not exclude a small jump in profitability in the last months of the year: at this time, banks have traditionally run seasonal deposits with higher rates, he explains.

Because the rate will fall, now is the time to lock in the current rate of return of deposits, notes, Atlas of the major species of Absolut Bank. This advice was also given Tarasenko from the Bank. He advises with care to open savings accounts for three years: it is impossible to predict interest rates on them. In addition, it can be simply inconvenient: for three years the financial situation of the investor may change, and money will have to pick up early loss of yield, he explains. So the best option is to place money on Deposit for the term from six months to a year, summarizes the Atlas of the major species.