Russians are conservative in matters of saving money, experts say

© RIA Novosti / Evgeny to Epanchintseva in photobacteria rubles. Archival photoRussians are conservative in matters of saving money, experts say© RIA Novosti / Evgeny to Epanchintseva the image Bank

The Russians remain conservative in saving and accumulation of funds, giving preference to traditional Bank deposits, and rather timidly go into new instruments in the financial market, say interviewed by RIA Novosti experts.

Active savings do 55% of Russians, only 46% of the population poses a long-term financial goals, according to the latest research by the OECD on financial education, which was held in the framework of the project of the Ministry of Finance to improve financial literacy.

In the coming years to take away the palm from Bank deposits is unlikely, however, a number of experts rely on the improvement of financial literacy of Russians. This will allow other tools of savings and augmentation of funds if not to become leaders, then at least to gain popularity.

Alternative savings «under the mattress»

In investment, the vast majority of Russians are very conservative and prefers the most accessible financial instruments – Bank deposits, experts say.

«Those who in principle makes savings, keeps them in the safe Deposit box or on Deposit», — said the Director of marketing and product development GK «A101» Dmitry Colors.

«Suffice it to say that of the total amount invested by the population means 75% is deposits in commercial banks,» confirms the Director of the Federal methodological center for financial literacy of the system of General and middle professional education, HSE Nicholas^.

According to the head of analyst research Department at JSC «UK URALSIB» Alexander Golovtsova, the volume of Bank deposits in the Russian Federation by 1 October 2018 amounted to 27 trillion roubles.

However, the deposits difficult to name the best investment, warns Professor, Department of financial management of REU named after G. V. Plekhanov Constantine Ordov. «Interest rates on them have not always been above even inflation and the real return of 2-4% per annum — clearly not the most attractive. But the liquidity of deposits can only compete with savings «under the mattress,» he explains.

In the short term preferences of Russians will not change significantly, says Chairman «West Bank» Victor Zhidkov. «Russians choose a simple Bank Deposit with a clear rate, as it is highly protected by the state, he’s comfortable,» he says.

The dollar and real estate

In the early 1990-ies one of the most popular ways of saving the Russians had the dollar, which constantly rose in price to ruble, reminds the Deputy Dean of the economic faculty of Moscow state University. Mikhail Lomonosov Sergey Trukhachev. «In recent years, its dynamics are less predictable, so we can say that the de-dollarization of savings has been overall logical», — he said.

«Experts estimate the volume of dollars from the public in the tens of billions. But not always, these investments profitable. For example, in the period from 2003 to 2008 the average annual rate decreased from 31.8 rubles to 24.5 rubles to the dollar. It was very sensitive. But to date, that is, in 10 years, the rate has increased 2.7 times, which resulted in an average yield above 10% per annum,» says Ordov.

Before the economic crisis of 2014 popular investment options among citizens, in addition to Bank deposits and translation of rubles in the currency basket, was a real estate investment kind of «bought at the pit – sold after you enter,» says Flowers.

Another way of investing in real estate is buying a home for subsequent lease. Such direction under the force of those who have incomes above average, said associate Professor of the Department «Regulation of financial institutions», faculty of Finance and banking, Ranepa Yury Tverdokhleb. The proportion of industries types of investments is not as high as for deposits, he said.

«Buying property is still considered by many people as the most effective investment of money. Not least because that is something tangible. And besides, practice has shown that the primary housing at least does not lose in price, if you choose the right object,» notes Flowers.

It is an investment, indeed, the most intuitive and reliable for many, agrees^. «Real estate prices generally rising, although there are occasional downturn. But the investments are not impaired and thus get more income in form of rents. However, the disadvantages of this tool is low liquidity. To of real estate to get money, it takes time. The second drawback is the high threshold of the entrance, which not everyone is able to overcome,» says^.

Elite tools

Young financial market of Russia is only going to gain the trust of citizens, says the Director of customer relations Department IFK «solid» Pavel Egorov. «In addition, the first wave of a mass of investors who have entrusted their savings to mutual Funds and other stock market instruments, long «cool» the crisis of 2008. Many clients of brokerage firms admit that since then have prejudices about the possibility to earn more than Bank Deposit rates», — he stated.

But the interest of Russians, although small and insignificant, to other investment instruments is still present, experts say. The problem is that because of the low level of financial literacy of the majority of Russians do not take into account inflation and I’m afraid to use other tools, says the expert of the project «Financial health» Anton ermines.

«In recent years, gaining momentum and becoming more popular different forms of investment activities investment savings associated with future pension savings. But they have not yet become a mass form,» says Tverdohleb.

Not long ago, the state has attempted to promote alternative means of investment, announcing the launch of individual investment accounts (IMS), reminded Egorov. «Their number exceeded 400 thousand. People on this account receives tax benefits, and it is foolish not to take advantage of this financial tool,» says^.

In 2017 appeared OFZ for the population, he continued. «The return on this financial instrument is higher than Bank Deposit, and the borrower, which acts as the Ministry of Finance of Russia, more reliable than the commercial banks,» — said the expert.

In recent years there has been a growth market investment life insurance (coli). However, the resulting yield of the related investment instruments life insurance, does not exceed, as a rule, 2-4% per annum, notes Ordov.

The ^ have also reported that the investment instruments of citizens become more complex. «For example, cryptocurrency. Most do not understand what it is, but greed pushes the most adventurous of people to invest in this tool. Still there is a structural financial products that are offered by many banks,» he says.

Now the market appears first of all from different microfinance organizations, a sufficiently large number of proposals for high returns, which by their nature are close enough to the pyramid schemes, warns Tverdokhleb. «Today we need to be careful when you offer various forms of investment of savings, new partnerships», — said the expert.

Much greater potential returns than Bank deposits, provides for the securities market, said Golovtsov. Even the most reliable instruments – bonds – in the next year or two it is possible to earn 9-10% per annum in rubles, or 6-7% in foreign currency.

«International experience shows that equities are the best protection against inflation: since 1918, the average yield was 7 percentage points ahead of inflation index. Therefore, the savings model of the Russians, most likely, will continue to gradually shift to the world standards. So, in the US, for example, stocks and mutual funds make up more than half of all the savings», — said the expert.

He notes that when investing it is important to distinguish than one financial instrument differs from another. «Compare the terms to select an optimal variant. Definitely need to make a personal financial plan and to take decisions in accordance with it, and not to follow emotions. And remember that the secret to financial success is to spend left after saving, not to save what is left,» advises the ermine.