The Western sanctions have put many Russians in a situation of uncertainty. Alexey Vedev, Doctor of Economic sciences, Head of Financial Studies Department of the Gaidar Institute, told UFA.AIF.RU, how savings should be treated and preserved.

When asked by AIFT whether to withdraw cash, Alexey Vedev recommends waiting out the instability and then deciding how to use personal savings.

"I don't see the need for that. I have always criticized our banking system as almost entirely state-owned because it is bad for the market environment. However, in a crisis it gives a certain resilience. It is clear that if 9 of the 10 largest banks are state-owned, settlements between them will be carried out without problems. The “Mir” payment system, which is fully domestic, is in operation. The “Mir” plastic card will continue to be in service and there is no need to withdraw cash," said Alexey Vedev.

"When one uses Visa and MasterCard, there are certain risks. As you may remember, they did not work in many banks early 2015 for a couple of days and then the Central Bank of Russia decided to establish its own payment system," he added.

According to Alexey Vedev, the most reliable way to secure savings is to open a deposit with a state-owned bank.

"There will certainly be a depreciation of funds because inflation will clearly accelerate. The Central Bank has raised the key rate to 20%, thus, inflation will be at least 18%. I think most banks will now offer deposits with high interest rates. My recommendation is to make a deposit in a state-owned bank.

The expert urges to refrain from any aggressive action in respect of savings because "it is unclear what will happen to the assets amid high geopolitical risks" and an endless stream of sanctions.

"I think the Central Bank's policy of deciding to close the stock exchanges for a while is exceptionally correct. This will reduce the risks. It is unlikely that any active action now will bring profits, but more likely losses. We just need to calm down, refrain from panic and transfer the accumulated funds to deposits", concluded the Gaidar Institute expert.