“Up to 69.9% annually”: how banks increase lending and deposit rates

Increase in loan rates

RB.RU contacted several of the country’s largest banks to ask about the increase in lending rates, but only VTB responded about the increase in the price of borrowed funds. The bank admitted that the cost of borrowing is increasing, but did not specify to what extent. At the same time, VTB noted that they expect a reduction in interest rates on loans.

“First of all, the change in conditions may affect the mortgage market, where a moratorium on the use of full loan cost (FLC) was previously introduced. Due to the prohibitive cost of commodities, the retail lending market will continue to shrink,” VTB Bank told RB.RU.

VTB expected that in the fourth quarter sales volumes would decrease by 36% compared to the same period last year and by more than 15% for the year as a whole. The new increase could impact the market even more.

“Taking into account the regulator’s new measure, we understand that the reduction in demand in the loan market will be even more radical,” VTB said.

• The United Credit Bureau (UCB) has already noted the trend of declining loan volume. In September, when the interest rate was 18-19%, Russians granted 4.73 million bank loans for a total amount of 1.21 trillion rubles, the number of issues decreased by 21% year-on-year and their volume by 41%. Compared to August this year, the number of issues decreased by 18% and the volume by 13%.

For fear of customer departure, banks do not advertise the real cost of loans. On the websites of credit institutions, customers are mainly informed about bonuses, discounts, interest-free periods and refunds. In rate documents, which are published in places invisible to the user, banks disclose the range of values, clarifying that the final rate is individual and will be determined before the final decision on the loan.

Sberbank: credit card and mortgage rates

Thus, on the Sberbank website it is indicated that the rates for cash loans start at 25.9% in general terms. In this case, the total cost of the loan can reach up to 40.2%. The Sbercard credit card rate for purchases, cash withdrawals and transfers in the first 30 days after registration is 24.8%, from 31 days – 38.8%. The bank offers a mortgage for a home worth 6 million rubles with a down payment of 33% to 26.5%.

VTB: Expectation of a decrease in demand for loans

VTB invites clients to familiarize themselves with the loan conditions approved for the period starting October 1, 2024, which are published on the bank’s website as current. According to the Open Market program, when attracting up to 100 thousand rubles, the rate can range from 34.9% to 47.5%. For amounts ranging from 100 to 300 thousand rubles, the indicated rate ranges from 29.3% to 36.7%. For a loan from 300 thousand rubles to 1 million rubles, the rate is 27.2 to 36.7%.

The tariffs for the VTB Opportunity Card credit card provide for an interest rate from the 31st day of use of 49.9% to 59.9%, as follows from the bank’s materials. But due to the interest-free period and other conditions, the total cost of the loan in the bank is indicated between 9.8% and 24.7%. An apartment for 6 million rubles and with a down payment of 2 million rubles can be purchased with a mortgage at a rate of 26.7% per annum.

“T-Bank”: high rates and hidden information about the real

On the T-Bank website, the loan conditions are also not obvious. First, customers are asked to familiarize themselves with the cashback options, click the “Request a Card” button, and then select their design. In the discrete tariff section, the “purchase” rate is indicated in the range from 12% to 59.9%, and the bank can provide money withdrawn from the card at a rate of 30% to 69.9% per annum. The total cost of the loan ranges between 11.9% and 34.99%.

When applying for a loan of 500 thousand for 5 years, the interest rate is set in the range from 15.9% to 34.9%, and the total cost of the loan is up to 49.9%. At the same time, in the “Cash loan rate” section it is noted that the interest rate can be set between 29.9% and 34.9%.

For mortgages on secondary homes, T-Bank offers 22% on the purchase of homes in the secondary market for 6 million and a down payment of 33%.

Deposit rates: not as high as advertised

Banks are more willing to disclose information about deposits; However, not everyone will be able to get really high rates due to a number of additional conditions.

Thus, VTB improved the conditions of ruble savings products by an average of 1 percentage point. On the bank’s website you can see that the maximum rate for six-month deposits is up to 22% per year. Over a 3 or 12 month period, new and existing bank customers are promised up to 21% annually when they place only new funds. When opening a deposit in PDS (long-term savings program with payments after 15 years), the rate will be up to 28% per year.

If the bank’s conditions are not met, the rate will be lower. For example, a non-salaried client, placing money in a bank for 3 months and receiving interest at the end of the deposit term, can only count on 18.5% to 19.5% per annum. When making a 6-month deposit, the rates are higher and for a three-year deposit the rate is reduced to 14% per year.

Sovcombank reported an increase in deposit rates, but to receive them it is necessary to comply with the bank’s conditions. For example, the deposit “Autumn Maximum with Halva”, which does not provide funds for expenses, can be opened with a rate of up to 25% per annum. But to get such a tariff, you will need to follow the 5×10 rule of the Halva card (make at least 5 monthly purchases for a total amount of at least 10 thousand rubles), pay a subscription “Halva Ten” and do not turn it off during the entire duration of the deposit. At the same time, the bank announces that the base rate for deposits is 22% per annum, but when making a deposit for 2-3 months without additional options, the rate will be 18-19% per annum.

There are conditions for receiving a high rate in Sberbank. The bank advertises a 21% deposit, but to get such a rate it is necessary to invest money “that has not been previously deposited in Sberbank for two months.” At the same time, the minimum rates start at 14.5% per annum, as follows from the bank’s materials.

In the near future, interest rates on loans may increase further, but those on deposits will most likely no longer increase. As Valery Tumin, member of the expert council for the development of the digital economy of the State Duma, told RB.RU, banks will continue to increase lending rates to cover current obligations and due to the increase in the cost of credit resources and deposits. They already have high rates that are attractive to depositors. According to the forecasts of a State Duma expert, the rate increase will continue for several more months.

After the rate increase, the head of the Bank of Russia, Elvira Nabiullina, reported that there were already 116 trillion rubles in accounts and deposits in Russian banks. With the help of these funds, banks finance a loan portfolio of 122 trillion rubles and invest in corporate bonds. Loans and bonds are a source of financing business activity, the head of the Bank of Russia added.

Nabiullina clarified that he does not see any risk to the stability of banks due to the fact that deposits are becoming more expensive and loans are less accessible.

“We do not see any risk to the stability of the banks. Banks are well aware that if deposits become more expensive and they can only offer loans at high rates, the demand for these loans will decrease. And this is what should happen from the point of view of the transmission mechanism and reduction of inflation,” stated the head of the Central Bank.

The next meeting of the Board of Directors of the Central Bank on the key interest rate is scheduled for December 20.

An increase in bank rates noticeably changes the situation in the financial market: loans become less accessible, and deposits become more attractive for savings. In the near future, rates are likely to adjust further, depending on further measures taken by the Central Bank.