Russia’s households pulled money from fixed-term bank deposits for the first time since the panic triggered by the Kremlin’s 2022 mobilization drive, as falling interest rates prompted some savers to shift cash into bonds, big-ticket purchases and cash holdings.
Funds held in Russians’ fixed-term deposits fell by 288 billion rubles ($3.97 billion) in March, the RBC news website calculated based on banking data, marking the first monthly outflow from term deposits since October 2022.
The decline came as deposit rates eased from recent highs and consumers increasingly sought alternatives for their savings.
The withdrawals signal that lower borrowing costs and slowing returns on deposits are beginning to reshape Russian household behavior after two years of unusually high interest rates that fueled record savings levels.
Economists say some funds are now being redirected toward investment products while others are flowing into consumer spending, particularly on durable goods — a shift authorities hope could support economic activity.
