Russian banks raise deposit yields for private clients amid liquidity competition

Russian credit institutions have begun increasing deposit yields for private clients despite a broader trend of monetary easing by the Bank of Russia. As of August 5, 2026, the average rate for three-month deposits among the top 20 largest banks reached 13.76% per annum—the highest level recorded since March of this year. Data from the financial marketplace "Finuslugi" indicates a shift in banking strategy toward retaining client funds amid intensifying competition for liquidity. This trend persists even as the central bank has consistently lowered its key policy rate, which dropped to 14% per annum in July 2026. Mechanisms Driving Rate Increases The disconnect between the central bank's policy and commercial deposit rates stems from two primary factors: the necessity for banks to maintain their capital base and evolving market expectations regarding the trajectory of future rate cuts. In contrast to early 2025, when the key rate peaked at 21%, current models reflect a slower anticipated decline in the cost of borrowing.