The Central Bank of Russia’s recent key rate cut is prompting banks to lower deposit interest rates, potentially impacting savings strategies for citizens. Despite the rate cut, the Central Bank has hinted at a possible rate increase if inflation accelerates.

Banks have already begun decreasing interest rates on deposits even before the Central Bank’s move. Data indicates that the average rate on six-month deposits in major Russian banks has fallen to levels not seen since October 2024. Currently, the average rate is 19.3% for six-month deposits and 18.6% annually.

Financial experts suggest that banks anticipate depositors will seek to secure current high rates by opting for longer-term deposit products. One advisor recommends locking in rates for the longest possible period, as deposit returns are expected to decline. Long-term government bonds with fixed coupons are presented as another investment option.

Experts explain that banks are lowering deposit yields in anticipation of further key rate decisions by the Central Bank to balance their margins. The high key rate had led banks to attract funds at high deposit rates, requiring them to balance liquidity and profitability amid slowed demand for assets.

Looking ahead, further rate decreases are anticipated throughout the second half of 2025, aiming to stimulate economic growth. Forecasts suggest the key rate could reach 18-19% by the end of the year, with average deposit rates potentially falling to 16-17%.

Despite decreasing deposit rates, analysts predict no significant outflow of funds due to a lack of readily understandable alternatives for the general population. Bank deposits remain the most accessible and formally protected savings tool. While other financial instruments exist, they require additional financial knowledge and a willingness to accept fluctuations in asset values, which most depositors lack.

It is emphasized that deposits up to 1.4 million rubles are insured by the state, providing a sense of security amidst economic instability. People tend to prioritize capital protection over maximizing returns, maintaining trust in the banking system, especially with larger institutions.