Those who never take risks, will never make a pretty penny out of interest
Recently the National Bank actively pushed the refinancing interest rate — the basic indicator of the bank market — down
Recently the National Bank actively pushed the refinancing interest rate — the basic indicator of the bank market — down. Inflation, however, also does not stand still. How long Belarusian Roubles will remain a profitable savings tool? And maybe, it is necessary to pay attention to other forms? We decided to apply these questions to professionals. Well-known financial adviser, the Head of the Moscow company, Lichny Capital (Personal Capital), Vladimir Savenok answered our questions.
According to Russian expert, Belarusian banks have good offers on financial investing
What is the rate, do you think, where depositors should consider alternative methods of investment?
The threshold of rates depends on the dynamics of fluctuations in the exchange rate between the Dollar and the Belarusian Rouble. For example, if the Dollar exchange rate grows by 20 percent a year, it means that the deposit rate in Roubles should be 20 percent plus certain additional income, let’s suppose, another 10 percent. That is 30 percent — it will be the upper limit in such a scenario. There is a question — whether the Belarusian Rouble will fall by 20 percent a year or not? Taking into account current problems in the economy and, in particular, complexities with exports, such a scenario is not excluded. So I would not trust in the Rouble unconditionally, especially in those deposits from which it is impossible to withdraw money ahead of schedule without loss of interest.
To what other tools would you recommend people pay attention: precious metals, real estate, securities?
Precious metals, in the form of ingots and coins, are a difficult and expensive investment. Real estate is also a difficult investment tool, and besides — very much low-liquidity. From securities, as far as I know, it is possible to buy only banks bonds. Therefore personally I would recommend two simple and clear investment options. The first — currency deposits in big banks. It seems that, for many people, an income of 4-5 percent is not enough. But compare that with the income in foreign banks. The maximum which you will receive there in a deposit account is currently 0.2-0.5 percent per annum. Therefore there is no reason to be greedy. The second option is to invest part of your capital abroad in liquid funds of securities. It is possible to do that legally through foreign insurance companies.
At my seminars in Russia, I always mention the high rates in Belarusian banks in Belarusian Roubles. The reaction was always identical: people could not believe in such rates.
How do you think, why have the high interest rates rouble deposits not drawn attention of non-resident investors to Belarusian banks?
I do not know. Probably, because of lack of advertising. At my seminars in Russia, I always mention the high rates in Belarusian banks in Belarusian Roubles. The reaction was always identical: people could not believe in such rates. On the other hand, the fact that they are very high also frightens foreigners. For them, high rates are always connected with risk; therefore many are afraid to deposit their money into another country. At my seminars speculators are the most interested in the detail of depositing money in Belarus banks. These are those who are ready to risk in order to earn a big percentage. Unfortunately, it is difficult to attract serious investors and serious money with high rates.
And what scheme would you recommend to a client, who had, say, approximately $10-15 thousand?
I would recommend that they place their money in a currency deposit. The most attractive deposit which I have found in Belarus banks is at a rate of 4.5 percent per annum. There are also other interesting offers. For example, there is a Rouble deposit which depends on the Dollar exchange rate. That means, if the Dollar exchange rate grows before the termination of the term of the deposit, the bank pays this difference to a depositor. Actually, placing Roubles on deposit, you place currency. The rate at annual deposit is 15 percent. It is really an excellent offer on currency deposits. Even if you consider several interest rates which will go on the conversion of Dollars to Roubles and back, all the same, the conditions are very good.