VTB announced a sharp increase in rates on deposits and savings accounts

VTB has been raising rates on ruble deposits and accounts since February 28 amid an increase in the Central Bank’s key rate to a historically record 20% per annum, the bank’s press service reported.

They noted that the maximum base rate for these products will reach 18% per annum. For example, this applies to the “New time” deposit and the “Safe” savings account. Now the base rates for them are 8 and 6%, respectively.

VTB also increased the yield on a short-term deposit in dollars when placed for three months. It will be 5% per annum, and in euro – 4% per annum.

Earlier, VTB came under US blocking sanctions along with Otkritie, Sovcombank, Novikombank and Promsvyazbank. Similar measures against the state bank were introduced by the UK and the EU. Against the backdrop of the incident, VTB announced an increase in mortgage rates by 4 percentage points – to a minimum of 15.3% for both finished and under construction housing.

This morning, the Bank of Russia announced an increase in the key rate from 9.5% to 20% per annum. The regulator explained that now the external conditions for the Russian economy have changed dramatically, and such a step will allow raising deposit rates to the levels necessary to compensate for the increased devaluation and inflation risks. The Central Bank believes that the measure will also support financial and price stability in the country and protect citizens’ savings from depreciation.

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