Evgeny Goryunov, Head of Monetary Policy Department at the Gaidar Institute, told Nezavisimaya Gazeta that the growth potential for long-term bank deposits in Russia remains limited, as this instrument is available primarily to citizens with high incomes and savings.
According to the expert, long-term deposits require a person to be willing to forgo access to their funds for an extended period, which implies having a financial “cushion” and a stable income.
“Long-term deposits are an instrument for those who have a sufficient amount of disposable funds that can be set aside for a long period. To invest for the long term, you need to be confident that you won’t need that money during that period. In Russia, there are few people with sufficient income and savings—about 7–10% of the population,” noted Evgeny Goryunov.
The economist believes that significantly increasing the volume of long-term deposits will be difficult also because citizens inclined toward active saving are already using such instruments. At the same time, a significant portion of the population simply does not have the funds that could be invested for the long term.
“Those who have money and a strong inclination to save are most likely already actively using bank deposits and other financial instruments. And for those who live paycheck to paycheck, there is virtually no opportunity to build long-term savings. Therefore, further growth in such deposits can occur mainly due to the flow of funds from other assets—for example, from real estate, foreign currency, or the stock market. But the potential for such flows is also limited,” emphasized Evgeny Goryunov.