Professor Safonov explains what interest rate might apply to funds in these social bank accounts.
Starting July 1st, social deposits will become available in Russia for low-income citizens who receive state social support measures. These deposits can be opened only in rubles, with a maximum amount of 50,000 rubles, for a term of one year, with the possibility of extension. The initiative is aimed at helping less wealthy individuals improve their financial standing. However, neither government agencies nor banks have yet revealed the specific interest rate for these deposits, leaving the potential profit uncertain.
This idea has been circulating since 2021, and a corresponding bill was even submitted to the State Duma. It was initially expected to come into force in the summer of 2023. Later, the «deposit for the poor» seemed to be forgotten, but as it turns out, not permanently. Now, it`s not just a project but a law set to take effect in just a few days.
It`s worth noting that social support measures in Russia are provided to citizens whose monthly income does not exceed the subsistence minimum. In 2025, this average nationwide figure is 17,733 rubles per month. This group also includes 12 other categories of the population, such as orphans, veterans and disabled veterans of military operations, World War II veterans and home front workers, former prisoners of Nazi concentration camps, among others.
While the «golden rain» for low-income individuals is just days away, many organizational questions remain. As of July 1st this year, only systemically important (large) banks will be able to open these deposits. From January 1st, 2027, all other banks participating in the deposit insurance system will also be eligible to offer them.
Furthermore, to become an eligible social depositor, several formalities must first be met. Specifically, access to the «Gosuslugi» (State Services) portal and an electronic signature are required; otherwise, it will be impossible to process the necessary documents.
In short, those who lack either of these prerequisites will not be able to open their social bank account initially.
And so, the main intrigue that persists is: what elevated interest rate will apply to the funds of low-income individuals in the bank? Naturally, recipients of social support measures hope for a miracle – significant interest that would provide a noticeable increase from their invested «last» 50,000 rubles. It`s hard to argue that living on a subsistence minimum of 17.7 thousand rubles nowadays is very difficult. After trips to the store, with current prices, very little money remains in the wallet. Can the «deposit for the poor» truly improve the financial well-being of these people?
«What interest rate will banks offer for social deposits?» we asked Alexander Safonov, Professor at the Financial University under the Government of the Russian Federation.
«Credit organizations will set the terms themselves,» he believes. «It`s important to understand that these funds are not particularly attractive to them. Firstly, the sum itself is small – 50,000 rubles – and secondly, it`s uncertain when the depositor might close the account. This category of the population may face `extreme` situations where life circumstances force them to withdraw money earlier than the set term. I have no doubt that banks will assess these risks. Therefore, it`s obvious: banks will not offer high interest rates.»
«But what about at least 23%, as it was very recently? This is meant to support the low-income; they are already struggling to make ends meet…»
«No one will offer such rates now; on the contrary, everyone is lowering deposit rates,» says Safonov. «The primary objective of a credit organization is to generate profit, not to assist the low-income. The law does not establish the rate size. This falls under the credit organization`s corporate policy, which cannot be detrimental to shareholders and the bank itself. Thus, the decision will be made based on its own interests. If the current average deposit rate is 16.5%, the bank certainly won`t offer interest rates on a social deposit higher than the Central Bank`s key rate, which is 20%.»
«So, over a year, the profit from a 50,000 ruble deposit will be purely symbolic, maybe 10 thousand rubles at best?»
«Well, what do you expect? You shouldn`t anticipate a high return from a small asset.»
«Do you think a low-income person is capable of saving 50,000 rubles to put into such a deposit?» Safonov reflects. «A sufficient number of Russians, even those not wealthy, might possess such funds. For instance, `burial money` – it`s commonly known that elderly people save for their funerals. Currently, many simply keep this money `under the mattress`. A bank deposit would provide some incremental gain. Furthermore, even less wealthy Russians set aside some funds for family financial support, purchasing household items, or gifts for loved ones. We often hear about someone, who wasn`t exactly `reaching for the stars`, being swindled out of a million or a million and a half rubles by fraudsters. I believe there will be enough depositors for the social account, although for some, it might not live up to expectations.»
Published in the newspaper `Moskovsky Komsomolets` No. 29550 on June 27, 2025. Newspaper Headline: «No Interest Rate is Set for the Poor»
