Yield article: Central Bank reveals new deceptive practices in deposit advertising
The Central Bank has reacted to the distortion of information when promoting deposits on banks' websites and called on the market to get rid of unfair practices. The regulator listed new tricks to Izvestia. For example, the figures are handled very freely in the deposit calculator, and instead of the interest rate, they reflect a more attractive rate of return, which is not regulated in any way. Now banks are trying their best to attract depositors in order to withstand increased competition in the market in the conditions of record high rates. However, they will have to comply with the Central Bank's recommendations in any case - otherwise the new regulation will not be long in coming.
Violations in deposit advertising on websites
The Central Bank has recorded cases when information about deposits on websites and mobile applications of banks is displayed incorrectly, the press service of the regulator told Izvestia. They specified: such deposit promotion techniques do not formally violate the law, but do not allow the consumer to adequately and fully assess the terms of the product offered.
The Bank of Russia cited examples of such practices of deception. One of them is when financial organizations focus the consumer's attention on the highest possible deposit rate. For example, it may be highlighted in the most noticeable font.
In addition, banks can distort information in the calculators of deposit yields on their websites, the Central Bank listed. Through them you can calculate the benefit of the deposit, taking into account its term and type (with withdrawal or without withdrawal), as well as whether it will be issued through the Internet Bank and whether the client receives a salary to an account in the organization.
In such calculators may be used pre-set marks, because of which at the first visit to the page a person sees the most favorable conditions for the deposit, the Central Bank said. However, in his particular case, the indicator may be different.
- Usually the main task of such calculators is to reflect the most favorable parameters of the product, - confirmed economist Andrei Barkhota.
Another example of unfair practice - when websites display the rate of return, but without the interest rate, listed in the Central Bank. In this case, the legislation does not regulate how exactly the yield should be calculated, and the bank can use its own methodology - eventually providing a person with distorted information.
Banks may indicate the yield instead of the rate in order to display it more favorable than it really is, said Freedom Finance Global analyst Vladimir Chernov. It may be calculated without taking into account additional conditions. In this case, the client will eventually see a lower yield on the product when making a deposit, but will not cancel the application.
How the Central Bank and the FAS reacted to deception in deposit advertising
The regulator advises market participants to inform consumers about the parameters of deposits without the use of various techniques that distort the terms of financial services, said the press service of the Central Bank. Formally, the recommendations of the Bank of Russia do not have to be taken into account, but if a market participant fails to do so, the regulator may send it instructions, which will already have to be fulfilled, said Andrei Barkhota.
The Central Bank expects that conscientious market participants will take into account its wishes regarding the display of data on deposits on websites. In addition, the regulator expects that associations of banks will form common principles for the entire market for the placement of such information. "Izvestia sent an inquiry to the largest of them - the Association of Banks of Russia (ABR).
Absolut Bank confirmed to Izvestia that it had received recommendations on deposit promotion from the Central Bank. The editorial board sent inquiries to other market participants as well.
The problem of unfair display of deposit rates was also brought to the attention of the Federal Antimonopoly Service. They specified: banks violate the requirements to deposit advertising if they do not indicate other conditions, on which their profitability depends, along with the rate.
- Such actions may contribute to obtaining unjustified advantages over competitors, - explained the antimonopoly service.
Whether the laws on deposit advertising will be changed
The use of marketing practices does not look like a critical violation of consumer rights, said Roman Kornev, director of bank ratings at Expert RA. Nevertheless, the Central Bank pays much attention to individual clients. Even if financial organizations voluntarily give up such practices, additional regulation will inevitably appear in the field of deposit promotion.
The Central Bank and FAS are already working on the requirements for advertising deposits, said earlier in an interview with "Izvestia" deputy head of the antimonopoly service Karina Taukenova. According to her, for deposits discussed the option of creating an analog of the obligation to display the full value of the loan (this requirement began in October 2023). In this case, banks would be obliged, in particular, to display the term of the deposit when indicating its rate.
By early fall, FAS recorded many violations in the advertising of deposits, said Karina Taukenova. According to her, the growing number of complaints may accelerate the development of legislation on this issue.
The Central Bank also sees such a trend. About 1,500 complaints were filed against banks last year for inadequate information about deposit terms, the media reported earlier. About 550 more complaints came because of disagreement with accrued interest. Customers could expect higher deposit yields just because of marketing tricks.
Why deposit rates are growing
Now banks are trying their best to attract depositors - they need it to provide loans to citizens and businesses. The profitability of savings instruments of the top 10 market players averages 22% for terms from three to 12 months, Izvestia found out. However, there are offers up to 24% per annum. Deposit rates exceed the key level of 21%, because banks have a high demand for funds of the population, said economist Andrei Barkhota.
There is a serious competition for depositors in the market, confirmed "Izvestia" in financial organizations. Sovcombank reported an increase in demand for deposits for up to a year, the share of which has grown to 52%, while back in 2023 the figure was only 34%. Novikom Bank also notes increased attention to short deposits - for a period of about three months.
At the same time, in 2024 the volume of Russians' funds in banks rose to a record 56 trillion rubles - it is a quarter higher than the result of 2023, according to the data of the Central Bank. This year, the record may be updated to 68 trillion rubles, VTB predicted.
The situation in the market has changed dramatically after the abolition of commissions for the transfer of funds through the system of rapid payments (SBP) between the accounts of the client within 30 million rubles from 2024, said Roman Kornev of "Expert RA". If earlier the threat of additional expenses for transfers deterred from switching to another bank, now the consumer has no restrictions - he can at any time transfer a huge amount to the organization that offers the most favorable conditions.
In addition, deposit rates are influenced by expectations of future changes in the key, said Freedom Finance Global analyst Vladimir Chernov. Many banks maintain maximum profitability on short terms (3-6 months), which means that they do not expect the Central Bank rate to decrease during this time.
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