In our country, saving savings on bank deposits is the traditional and most acceptable way for most citizens. But lately, the storm has been getting stronger and stronger on deposits.
After the Bank of Russia lowered the key rate on April 29 by 3 percentage points at once, to 14% per annum, Sberbank immediately (from May 1) lowered deposit rates. Now the maximum yield on ruble deposits is 12% instead of 16% per annum, established earlier. This follows from the data on the website of the largest Russian bank.
This rate – 12% – can be obtained if you have an annual subscription to the services of SberPrime+ bank and when opening an online deposit and for up to three months. The minimum deposit amount is 100 thousand rubles. At the same time, for a period of up to six months, the maximum rate on ruble deposits will be 10%, for a period of up to a year – 9%, the PRIME news agency notes.
Will there be many willing (or simply able) to understand and play such a deposit solitaire? In addition, this will affect not only Sberbank depositors.
The key rate of the Central Bank is the starting point for the value of money in the Russian economy and directly affects the rates on banking products. Therefore, in the near future we should expect a reduction in rates on both deposits and loans, warns the profile portal Banki.ru.
Reducing the key rate at the end of April from 17% to 14% is the second such decision in a month: in early April, the Central Bank lowered the rate to 17%. And before that, on February 28, there was a record increase to 20%, which the Central Bank then called an anti-crisis measure necessary in the face of price surges and a sharp increase in devaluation and inflation expectations. Now Central Bank analysts are noting “stabilization of inflationary expectations and an increase in savings sentiment” of the population, and conclude that this means a decrease in the risks of an inflationary spiral unwinding. Although at the same time they predict: in general, consumer prices will increase by 18-23% this year.
And according to the NRA rating agency, on the horizon of three months, the average deposit rates will be from 12% to 14%. How, with such a gap, to maintain (to increase – there is no question) savings on deposits? What will happen next and what should investors do? Those who managed to invest at a conditional 18% for 3-6 months will have to shift at lower rates. So, if there is a need to open a deposit, it is better to do it in the coming days, the Banki.ru analyst recommends. Vadim Tikhonov.
So, for those who are burdened with small amounts of savings, perhaps, indeed, as SP has already recommended, it is better to buy a motor cultivator with the “extra” money and go to plow the garden – plant potatoes, carrots, cabbage and other beets. Such “investments” will definitely be beaten off.
And for those who have “extra” money, although not by much, but still more, there are other recommendations.
“In a crisis and high inflation, investors in Russia are keenly interested not only in classical, but also in alternative options, new ways of investing in order to make a profit and save capital,” notes Associate Professor of the Department of Finance and Prices, Federal State Budgetary Educational Institution of Higher Education “PRUE G.V. Plekhanov” Diana Stepanova:
— Against the backdrop of a growing variety of investment tools, increasing awareness of citizens about new innovations, new markets and trends in connection with the development of information and investment technologies, digital innovations, possible methods of investing money are increasing,
Traditionally, collectibles (rare stamps, coins, wine, whiskey, watches, rare cars, art, antiques, etc.) are investment objects.
In 2022, inflation and supply chain problems will continue to fuel demand. Especially the continued growing demand from the Asian region is pushing prices up. Established and market-recognised alternative investment assets can be viewed in the categories of the Coutts Passion Index or the Knight Frank Luxury Investment Index (KFLII), some of which may have volatile returns (for example, rare watches rose in price by 20% in 2018, while jewelery prices fell more than 18%.
“SP”: – Is art always valuable?
— Investments in the world of art allow you to diversify your investment portfolio and insure yourself against market risks. The return on investments in art objects usually ranges from 7% to 20% per year, and their prices are little affected by changes in the world commodity markets. This attracts investors, but at the same time, investments in works of art are not available to anyone due to the high entry threshold.
Now, however, platforms for collective investment in art have begun to emerge. Various investment platforms such as Masterworks, TheCarCrowd, etc. lower the entry barriers to this market for ordinary investors, allowing people to own a work of art for a fraction of its market price and later earn by selling it at a higher price.
In recent decades, new collectibles have been added to the traditional ones that are of interest from an investment point of view and new types of unusual investments. These are not only household items and celebrity clothes, memorabilia autographed by famous people, rare books, manuscripts, plants, stones, meteorites, but also bets on natural disasters and geopolitical events, crowdfunding investments in e-sports, film production, antiques and art objects, and also investments in non-material values: NFT (non-fungible token), non-fungible and unique tokens, assets in the metaverses, “upgraded” virtual characters and virtual assets in online games.
If you’re bored with the monotonous investments in traditional instruments, you can try these unusual investment directions to spice up your portfolio.
Moreover, investors in Russia are keenly interested not only in classical, but also in similar alternative options for capital allocation. After the start of the military operation in Ukraine, the capital of Russian investors rushed to the UAE, primarily to invest in Dubai real estate in order to save capital.
“SP”: And what is happening in the field of virtual accumulation?
— The Russians are also actively interested in investing in the metaverse. Here you can buy not only virtual real estate, land, cars, but also any other assets. Over time, the same services as in the real world may appear in the virtual real estate market, including loans, mortgages, leases, etc. Since the current active development of the metaverse can be considered as the creation of the Internet of the late 1980s, investments in a variety of virtual ecosystems can be very attractive from an investment point of view in the long term.
Those who are interested in investing in the field of culture and art should pay attention to cutting-edge artists, art masters, photographers, musicians, filmmakers who use social networks and the crypto community to create their image and reputation. Thus, the trading volume of NFT tokens reached more than 10 billion dollars in the 3rd quarter of 2021, an increase of more than 38,000% year on year.
In 2022, the number of digital and virtual collectibles will continue to grow, competing with traditional art sales. NFT, the metaverse and other digital communities are certainly a new round in the development of virtual culture and the crypto industry, which attracts an increasing number of investors.
However, one must be aware of the high risks of investing in digital objects in a new, only emerging market – high price volatility for such investment virtual assets, cultural and art objects, a drop in interest in their authors or in a specific market segment, the digital community or virtual art in general. As in the world of traditional art, investing in the virtual world is risky and complex, requiring either a deep understanding of the market or expert advice.