Roughly one out of ten Russians stores cash at home.
Where Russians Park Their Hard-Earned Cash:
It turns out that the average Russian prefers to keep their money at home, but a sizable majority is eager to place their savings in a bank if interest rates are juicy and they trust the institution, according to a survey by VTB.
A quarter of the respondents opt for safekeeping their cash in lockboxes, while 20% rely on old-fashioned piggy banks and dusty books for their cash stashes. Some even hide their dough in hidden pockets, under their mattresses, or within toys and children's items, as per the survey results.
The hungriest readers among us might be tempted to think that Russians have resorted to some unconventional methods to store their cash, like stashing it behind pictures, in kitchen utensils, electronics, under the floor, or in the bathroom. Well, the Russians have got plenty of options, it seems.
Most Russians keep a modest amount of cash at home—between 5,000 and 30,000 rubles, as reported by the survey. A third of the respondents confirmed they have stashed away between 30,000 to 100,000 rubles at home, citing convenience as the main reason for doing so.
With high interest rates on deposits, Russians are beginning to embrace the idea of working with banks more, especially since some can be utilized as digital wallets.
The share of paper money in savings and investments, excluding pension and insurance products, is reportedly at an all-time low over the past six years and could plummet even further by year's end, according to VTB.
Chelyabinsk, Viktor Yeliseyev
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Now, let's shed some light on why Russians might prefer certain methods over banks.
Banking Factors:- Sanctions: International payment limitations may drive some Russians to rely on cash for transactions.- Currency volatility: Russia's floating exchange rate and a history of currency devaluations create a sense of caution among Russians, compelling them to hoard some cash.- Interest rates: Higher rates could encourage deposits, but currency risks could negate this incentive.- Regulatory context: The Central Bank's focus on ruble stability provides a semblance of confidence in banks, but historical financial crises shatter faith for some demographics.- Cybersecurity concerns: The active Russian cybercriminal underground might deter some from digital transactions in favor of physical cash.- Practical barriers: Systemic challenges like restrictions on direct deposits to U.S. accounts for Social Security beneficiaries in Russia promote domestic cash hoarding.
- Despite the increasing number of Russians trusting banks with their savings, some persist in keeping cash at home due to factors such as international sanctions, currency volatility, and concerns about cybersecurity.
- In the year 2025, personal-finance experts predict an increase in Russians leaving cash at home, as they prioritize practicality and convenience over traditional banking methods.
- As more banks introduce digital wallets, it is expected that Russians will become more open to financing their businesses and personal affairs with these services, reducing the reliance on physical cash.
- Historically, the Russian finance system has experienced several financial crises, leading some demographics to hoard cash instead of trusting banks, even with higher interest rates on deposits.
