Deposits in foreign currency are one of the most popular methods that allow ordinary citizens to save capital. Rates on foreign currency deposits are lower than on ruble deposits, so people who want to protect their savings from depreciation and also make money on exchange rate fluctuations often stop at them.
Many people think that such steps involve large investments. However, the minimum threshold for opening a deposit is often at the level of $100. The most profitable are deposits that provide for capitalization. Convenient and popular options: the possibility of replenishment and early withdrawal of cash, but such conditions are extremely rare. Dollar placements are insured by the state — for 1.4 million rubles (taking into account the exchange rate).
Profitability depends on the amount and duration of the deposit. The disadvantage of this method of accumulating and increasing capital is the instability of world currencies, which is difficult to predict. However, if you look at the domestic banknote, then instability is even more inherent in it.
1. Deposits in dollars
To open, you can use almost any banknotes, but in fact, currency deposits are most often opened in dollars or euros. At the same time, the bonus is the freedom to independently decide how much the initial contribution will be, for how long the capital will be placed, whether it will be possible to replenish and partially withdraw. To influence these parameters, select the offer that is right for you. Bank deposits can be «term» and «on demand» — everyone has the right to decide for himself which format will be the most effective.
There is stability in the foreign exchange deposit market. Despite the fact that foreign currency deposits are not the most profitable instrument, even compared to their ruble counterparts, many Russians prefer such deposit products because they are more reliable, more stable, and also allow them to count on receiving additional profit due to the growth of the dollar. The income received from deposits in foreign currency consists of two components: bank interest + exchange rate growth.
Example. If you placed a deposit in dollars at 0.75% per annum, and it grew by 10% against the ruble over the year, your profit from the investment will be 10.75%.
|Bank||The product’s name||Sum||Interest rate||Term|
|Sberbank||«Save»||From 100$||0.01 to 0.55%||From 1 month to 3 years|
|«Uralsib»||«Turbo»||Any||Up to 0.3%||From 1 month|
|Rosselkhozbank||«Your Opportunities»||From 20 000$||0.01 to 0.75%||91 to 1825 days|
|UniCredit||«First class»||From $500 to $200,000||0.15 to 0.3%||91 to 368 days|
|«Tinkoff»||«SmartDeposit»||From 1000$||Up to 0.7%||3 months to 2 years|
|«VTB»||«Investment in the future»||From 500$||Up to 0.5%||91 to 730 days|
|«Alpha»||«Alpha account»||From 1$||Up to 0.4%||From 1 month to 1 year|
Before applying to a financial institution, choose the appropriate options for yourself. Analyze the limits offered by organizations, the term (popular periods are 6 months, 3 months and a year) and profitability.
2. Euro deposits
If today you can find many options for putting $ in the bank, then deposits in euros are either completely removed from the lines, or they are set at a symbolic 0.01%. It is now completely unprofitable for financial institutions to accept the European currency.
Large banks are not interested in working with it because of the zero or even negative rates that operate on the European market. Because of this, financial institutions that invest in local assets face negative returns.
The financial sector even had to turn to the Central Bank and ask them to introduce negative rates on foreign currency deposits. This would lead to the fact that customers would pay extra for the storage of their own funds. But for this, it would be necessary to change the Civil Code — in the current version, representatives of the financial sector are required to open a savings deposit for clients and return the amount with interest.
Although the number of options that allow you to place a deposit in euros is decreasing, some offers still remain. Check out the review:
|«VTB»||«Investment in the future»||From 500€||0.05 to 0.5%||3 to 24 months|
|«Ural Bank for Reconstruction and Development»||«Comfortable»||From 300€||Up to 0.11%||390 days|
|«Oriental»||«Oriental»||From 500€||0.1 to 0.3%||From 1 month to 3 years|
|«SKB-bank»||«Lucky Coin»||From 300€||0.1%||Up to 1080 days|
|«Zenith»||«Festive in Euro»||From 10 000€||0.1%||Up to 367 days|
3. Multicurrency deposits
Another alternative is to open a multi-currency deposit, which allows you to deposit rubles, dollars and euros into your account at the same time. In an unpredictable economic situation, a multi-currency basket is a good chance to distribute risks.
If one currency starts to fall, others can be protected by forced money conversion. The commission for this in this situation is often not provided, however, minimal interest is also offered.
A number of financial institutions allow, if necessary, to «transfer» funds — for this, an Internet bank or a mobile application is used.
|«Ural Bank for Reconstruction and Development»||«Multicurrency»||50 000 RUB / 300 $ or €||Up to 3.5% in rubles, up to 0.1% in $, 0.01 in €||210 days|
|«Tinkoff»||«Smart deposit — multi-currency»||50 000 RUB / 1000 $ or €||Up to 4.5%||3 to 24 months|
|«PSB»||«Growth strategy»||From 500 000 RUB / 1000 $ or €||Up to 4.95%||91 to 1110 days|
4. Terms of foreign currency deposits
Under certain scenarios, such investments provide for tax payments. If the tax is charged on ruble deposits only if the profitability within the transaction is 5% higher than the refinancing rate of the Central Bank, then in the case of foreign currency deposits, the state charges it from the income received if the excess is 2.5% or more.
If today this figure is 4.25%, then when 2.5% is added to it, 7.75% comes out. Thus, if the interest on the selected foreign currency deposit does not exceed the amount received, there will be no tax payments. If the percentage offered under the agreement is higher than this value, the tax will have to be paid. If you are a tax resident of the Russian Federation, you will have to pay 35%, if you are a non-resident — 30%.
In this case, the accrual does not occur from the entire amount of the profit received, but only from the excess. Suppose the interest under the contract is 15% per annum. Then the deduction to the budget will be calculated from the difference between 15 and 13.25% — it will be 1.75%. People do not need to fill out declarations. The bank will do it.
5. Are deposits in foreign currency insured?
Are depositors protected? It does not matter in what currency an individual places savings — foreign or Russian. In both cases, an insurance procedure is provided, the maximum amount of which is 1,400,000 rubles.
In the event of an insured event, the deposit is recalculated into Russian banknotes — the individual receives compensation within the amount established by law.
6. How banks earn on deposits in foreign currency
There are three main scenarios used by financial institutions:
Sometimes they lend at a low interest to the business projects of their shareholders or become founders of other companies. For investors, such ways of investing look risky, but they are most often unaware of them. Although if the company they entrusted with their money takes too much risk, it may go bankrupt. But this applies more to small organizations.
7. Advantages of deposits in foreign currency
- $, € and some other currencies tend to rise against our national currency;
- if you open one or more accounts in foreign currency (the second scenario looks more preferable), you will be able to diversify your risks. If there is a sharp fall in one currency, you will be able to compensate for what you lose by increasing the other;
- everyone has the right to choose not only classic scenarios, but also more exotic ones — the British pound, the Chinese yuan, the Japanese yen, etc. They also have good reviews — even if the profit is not the greatest, but this way you will be even better protected from inflation and market shocks ;
- the ability to be mobile if you often buy goods, pay for services or make transfers using currency;
- they help not to think about such factors as the devaluation of the ruble, etc.;
- an impressive proportion of domestic financial institutions offer interesting options, most of them with affordable entry thresholds. If you make a contribution in national currency, it will be converted into the one you need;
- depositors have access to all the necessary options: the ability to replenish the account and manage it remotely, make partial withdrawals, etc.;
- foreign currency deposits are subject to state insurance.
There is only one drawback here. Deposits in foreign currency placed in reliable banks imply interest on deposits that is significantly lower than those set for ruble counterparts. Therefore, if we compare the simple economy and take into account the expected market fluctuations (which will not necessarily happen), the ruble deposit looks like a much more profitable option.
8. Where is it better to invest — in rubles or currency
Currency protective instruments are, first of all, reliability and, secondly, a chance to earn money. Despite the fact that interest rates on deposits are not as impressive as even on ruble deposits, many people prefer to protect their financial cushion with the help of foreign currencies.
Although for this you can use the signs of almost any country, in practice, deposits are more often chosen in $. They are more understandable, predictable and predictable.
One of the advantages of currency instruments is that they give you a chance to determine for yourself what the deal will be like in the end. You decide how much to allocate as a down payment, how long it will lie in the account. If necessary, choose additional options and replenish or withdraw part of the funds.
If you feel that the situation is becoming unstable, the multicurrency basket will be the best choice. Examine the rating of offers, read the details.
The benefit from placements in foreign currency directly depends on the amount of investments and the period for which you part with the deposit amount. Do not forget that rates are not as stable and predictable as we would like — even experienced investors cannot accurately predict what changes will occur in the short term, not to mention the long term. And it is worth remembering that no one can give you any guarantees that over time your savings will not depreciate.