Confidence in long-term deposits collapses in Russia – intelligence

Ukrinform reports this with reference to the Foreign Intelligence Service of Ukraine.

“More than 70 % of Russians place their savings in deposits with a term of up to six months. Three-month deposits have become the most popular, having accounted for 33.2 % of the total in October. On the other hand, deposits for more than a year have practically lost their demand, with their share not exceeding 7 %,” the report says.

This is explained by total distrust toward the banking system and the instability of Russia’s economy.

Russians seek to obtain at least some benefit quickly, fearing long-term risks.

Because of the slowdown in deposit growth, Russian banks are forced to revise their service terms and invent “attractive offers.”

“In fact, this is yet another sign of the country’s financial decline, where even its own citizens no longer believe in tomorrow,” the intelligence service stated.

As reported by Ukrinform, the Central Bank of Russia believes that after three quarters of slowing growth, the country’s economy may slip into decline by the end of the year.

Photo: freepik.com