Bank deposits' highest possible interest rate has dropped to 16.44% on average.
In the financial landscape of Russia, the top 10 largest banks - Sberbank, VTB, Gazprombank, Alfa Bank, Rosselkhozbank, Post Bank, Moscow Credit Bank, T-Bank, PSB, and Sovcombank - have seen a downward trend in their maximum deposit interest rates since early July 2025.
The Central Bank of Russia, which serves as a benchmark for the market's interest rates, has implemented a series of key interest rate cuts. In July 2025, the key rate was lowered by 200 basis points to 18.00%. This move has had a significant impact on the interest rates offered by banks, with the new rates expected to be no more than the Central Bank's calculated average maximum interest rate plus 2 percentage points.
As of August 1, the average maximum interest rate on three-month deposits in these banks stands at 16.09%, a decrease from the highs of early June 2025, which were in the range of 18-19% per annum. The longer-term deposits have also seen a similar trend, with one-year deposits averaging 14.16%, down from the 18-19% range in early June.
Meanwhile, the average maximum yield on six-month deposits in the top 10 banks is below 16% per annum, while the average maximum yield on one-year deposits is below 15% per annum.
Experts attribute this trend to the Central Bank's key rate cuts and competition among banks, as they aim to balance liquidity needs and economic conditions. Despite the falling rates, deposit attractiveness remains due to relatively high yields compared to the current inflation rate, which is declining but still at 9.2% annually.
Looking ahead, analysts predict that the key rate could continue to decrease, potentially reaching about 16% by the end of 2025. This suggests that the downward pressure on deposit interest rates among major banks may persist.
It is important to note that the lowest average interest rate ever recorded in Russia was 4.33% in October 2020, while the highest average interest rate was 22.28% in December 2024.
In conclusion, the current trend is a gradual reduction in the maximum deposit interest rates at Russia’s largest banks from roughly 18% down towards around 16% or slightly lower by year-end 2025, following the trajectory of the Central Bank's key rate cuts and slowing inflation. The analysis of these banks' interest rates will continue to be a focus in the coming months.
Personal-finance decisions could be influenced by the ongoing trend of decreasing maximum deposit interest rates in Russia's top 10 banks, as expected yields may continue to fall due to the Central Bank's key rate cuts and competition among businesses in the investing sector. With the key rate potentially reaching around 16% by the end of 2025, individuals may need to reassess their investment strategies in personal-finance planning.
