Now there is a unique opportunity to make even more money with your capital.
Photo: Svetlana MAKOVEEVA
You have money? If so, congratulations, you are a happy person! Not everyone is so lucky (especially nowadays).
And you are also lucky because now there is a unique opportunity to make even more money with your capital. After all, in just a month, deposit rates in Russian banks increased sharply – by 4-5 percent annually. Because? Because the Russian proverb worked: there would be no happiness, but misfortune would help.
A LITTLE SLOWER, PRICES!
Unfortunately, let’s look at this in a little more detail.
Last summer in Russia, what a surprise! – price growth accelerated. In May 2023, annual inflation (compared to the last month of spring 2022) was only 2.51%. And in September it shot up to 5.5%.
There are two main reasons for the price increase.
– Fall of the ruble
In nine months, our currency has lost almost half its value. At the beginning of the year, the dollar was worth 68 rubles, and in August it jumped above one hundred.
– High demand for goods and services.
According to Rosstat, our salaries are growing by leaps and bounds. According to the department’s data, in the first half of the year the income of the average Russian increased by 14%. The “blame” for this is the personnel shortage that abounds in Russian companies: import substitution is spreading throughout the country, production of everything is growing, workers are needed. And there are no more left. Companies are therefore forced to compete fiercely with each other for staff and increase salaries. And as our income grows, we spend more money on goods and services. When demand increases, prices rise: this is the law of economics.
KEY MOMENT
Then prices went up and the Central Bank didn’t really like it. Uncontrolled inflation is its main enemy. Therefore, the Central Bank unsheathed its main weapon against price increases. And he raised the key rate twice in one month. First, on August 15, from 8.5% to 12% per year, and then, on September 15, up to 13% per year.
The key rate is the percentage at which the Central Bank lends money to ordinary banks. They will have to return this money. Consequently, when the key rate increases, the rates on deposits and loans increase (after all, banks now need more money).
That is why Russian banks have so dramatically improved deposit conditions: it is the Central Bank’s key rate, and not a massive attack of sudden largesse. Deposit rates also increased twice: first in the second half of August, by about 3.5%, then, after September 15, by 1%. Thus, if in mid-summer the average deposit rate was approximately 7 to 8 percent per year, now it has increased to 11 to 12 percent.
By the way, interest on deposits does not increase immediately after the key rate rises. Banks need to think a little, look at their competitors… But it has been approximately two weeks since the Central Bank raised the official interest rate. And all (or almost all) banks have already clearly defined their conditions. So you can open a deposit. All that’s left is to find the best bet. But how to do that?
THE FISH LOOKS DEEPER
…And the investor, where the interest rate is higher. There are two main ways to find the best rate.
The first method is tedious: go through the websites of all the banks you know.
Method two, fast and convenient: use special sites called aggregators. They automatically compare the conditions in all Russian banks and offer you the best options.
With the first method everything is clear: grab a notebook, set aside time and move on. And if you decide to use the second method, here is a step-by-step algorithm for finding the most profitable deposit.
Step 1. Go to the aggregator site
And it is better, without a doubt, two or three at a time. The most popular aggregators that we use in the economics department are: banki.ru, sravni.ru, bankiros.ru, finuslugi.ru.
Aggregators help you select not only deposits, but also other financial services: loans, insurance, etc. Therefore, when you open the site, find and click on the “Deposits” section.
Step 2. Select the necessary parameters
This is your city, the amount and term of the deposit, the possibility of replenishment and early withdrawal, etc. And the site will give you the most profitable options according to your conditions.
Important: Now banks offer the highest interest rates on deposits for 3-6 months, as well as for 3 years.
Step 3. We clarify the conditions on the bank’s website.
The aggregator is not without sin. If you find suitable conditions for a deposit, open the website of the bank of your choice and make sure that everything is exactly like that.
Step 4. Check that the deposit is insured
We remind you that deposits up to 1.4 million rubles are insured by the State. And if the bank’s license is revoked, it will be reimbursed for losses. But provided that the bank participates in the deposit insurance system.
You can check it on the website of the Deposit Insurance Agency: asv.org.ru. Open the “banks” section and enter the name of the financial organization you want to entrust your money to. If the bank you have chosen is listed there, feel free to open a deposit in the amount of up to 1.4 million, if you have more money, it is better to distribute it between different banks.
Important: If you have several deposits in one bank, a maximum of 1.4 million rubles will be refunded to you. If you have deposits in different banks and they are all closed at the same time (and if), up to 1.4 million rubles will be returned to you from each bank. By the way, interest is also insured.
Step 5. Open a deposit
We sit down and the money flows. Beauty!
AND ENOUGH OF THE GOOD
Loans have also become more expensive
If now is the best time to open a deposit, we will not envy Russians who need a loan. After all, the interest rate on the loan also grows according to the official interest rate of the Central Bank. It turns out that since the beginning of August loans have become more expensive by an average of 4.5%. Mortgages are currently granted at an average rate of 15% per year*, and consumer cash loans at 23%. Nightmare.
The Central Bank also understands it. After all, expensive loans are a drag on the economy: people and businesses borrow less money, investments fall, fewer goods are sold and bought domestically, and businesses lose profits. Therefore, at the first opportunity, the Central Bank will lower the key interest rate. But when this will happen is a big question. The Central Bank dreams of throttling inflation to 4% annually, but those figures are not yet in sight. On the contrary: according to the forecasts of the Ministry of Economic Development, at the end of this year inflation will accelerate to 7.5%.
“Under current conditions, a long period of tight monetary policy will be necessary,” Elvira Nabiullina said in mid-September.
Translated into Russian: the head of the Central Bank warns that high rates will be with us for a long time. This means freedom for investors. And a “long period” of strict belt-tightening for those who like to live on credit.
* We are talking about a regular market mortgage for secondary housing. As for preferential mortgages for new buildings, their rate is regulated by the State and still does not exceed 8% per year.
IMPORTANT
The deal is more valuable than the money.
All of the above applies only to newly opened deposits, as well as loans. If you already have a bank deposit or loan, the conditions for this do not change.
THERE IS SOMETHING
Take score!
In addition to deposits, lately almost all banks offer a tool such as savings accounts. So be careful with them.
After all, what is a classical contribution? This is when you deposited money for a certain period at a certain percentage, and during this period the conditions do not change.
With a savings account it is different. Because here each bank is free to set its own conditions. And bankers sometimes approach this issue very creatively.
For example, in a bank the conditions are as follows: the first two months the rate will be 12% per year and then it will drop to 9%. Or here’s a trick found in the conditions of some banks’ savings accounts: interest is charged on the “minimum daily balance during the month.” For example, he opened a savings account on October 2 and deposited a million there. And at the end of the month you won’t be credited a single cent. Because the “minimum daily balance for the month” was recorded on October 1, when there was nothing in your account.
We are not saying that savings accounts are not profitable. But if you decide to open such an account, read the terms and conditions carefully to avoid unpleasant surprises.
Photo: Dmitry ORLOV
ONLY NUMBERS
What do the 10 best banks offer?
Interest on deposits
Bank website 3 months 6 months 12 months
Sberbank sberbank.ru 9.8% 8.8% 8.18%
VTB vtb.ru 10% 9.25% 8.2%
Gazprombank gazprombank.ru 9.58% 9.97% 8.95%
Alfa-Bank alfabank.ru 11% 11% 10.9%
Rosselkhozbank rshb.ru 11% 10.5% 9.5%
MKB mkb.ru 10.5% 10% 9.75%
Opening open.ru 11% 10.5% 9%
Sovcombank sovcombank.ru 11.5% 10% 9.4%
Rosbank rosbank.ru 11% 11% 9.5%
Tinkoff tinkoff.ru 8% 9% 8%
Data from the banks’ official websites as of September 21.
The calculations are preliminary and do not constitute a public offer. This percentage is offered if you open a deposit of 1 million rubles. Loyalty programs and other special offers are not taken into account. Fees may vary when opening an online deposit. More complete conditions (withdrawal/replenishment, rules for early closing of deposits, etc.) can be found on the websites. Komsomolskaya Pravda is not responsible for changes in deposit conditions.
The tax will be calculated automatically.
Money spoils a person. This is stated in the Bible and the Koran; This is what ancient sages and modern psychologists teach us. And another of the traditional values of Russians, enshrined in a special presidential decree, is the priority of the spiritual over the material.
In general, you understand what we mean. You will have to shell out the money.
The tax on deposit income was introduced in 2020. However, due to Covid problems in the economy, it did not have time to come into force: this rule was suspended for two years. Now, apparently, everything is fine with the economy and the income of the Russians. Therefore, the law was “thawed.”
We will pay the new rate for the first time next year. This will be a tax on income received from deposits and savings accounts for 2023. It is calculated according to a somewhat complicated scheme.
The law stipulates so-called “non-taxable interest income.” That is, you can receive a certain amount as interest from the bank and not pay a single cent. And anything above that will already be taxed at a rate of 13%.
Non-taxable interest income in this case is calculated as follows: 1 million rubles must be multiplied by the maximum key rate of the Central Bank for 2023.
Let’s explain it with our fingers. Currently the key rate of the Central Bank is 13%. Let’s say it doesn’t grow until the end of the year. In this case, at the end of 2023, interest income of 130 thousand rubles (1 million rubles * 13%) will not be subject to tax.
Let’s assume that in 2023 you will earn 100 thousand rubles on your deposits. In this case, you will not have to pay any tax, because 100 thousand is less than non-taxable income.
If you earned, say, 150 thousand rubles on deposits, you will need to subtract the “non-taxable” amount from this figure. It will turn out 20 thousand rubles. We multiply 20,000 by 13% and we get 2,600 rubles: that’s exactly what you will have to pay.
And so that, God forbid, you don’t make mistakes in the calculations, they will make them for you. At the end of January, the tax office will receive information from all banks on the interest paid to depositors for 2023. It will calculate the amount of tax and issue invoices to all taxpayers in late summer or early autumn. Notifications will appear in our personal accounts on the tax website and the government services portal. Payment must be made before December 1, 2024.
