Poll: 38% of Russians call cash the best way to keep savings, up 6 points in a year
In short
In September 38% of Russians named cash as the best way to store savings, 6 percentage points more than a year earlier, Izvestia reported, citing a poll by inFOM (инФОМ). Bank accounts were preferred by 37% of respondents. Experts quoted in the coverage linked the shift to a wish for direct access to money, tighter control over transactions and lower deposit rates.
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The share of Russians who consider cash the best way to keep their savings rose to 38% in September, 6 percentage points more than a year earlier, Vedomosti reported, citing Izvestia and data from a poll by inFOM (инФОМ). According to the survey, 37% of respondents prefer bank accounts. The news agencies TASS and RIA Novosti also reported, citing Izvestia and the poll respectively, that Russians are more often choosing cash to store their money. [ 1 , 2 , 3 ]
Natalia Belova, deputy chief executive of Rosgosstrakh Zhizn (Росгосстрах Жизнь), said the growing interest in cash is linked to a wish to have direct access to money and not to depend on banking apps and connectivity. Vladimir Chernov, an analyst at Freedom Global, said tighter control over transactions and falling deposit rates are also deciding factors. [ 3 ]
Experts warned that keeping all savings in cash does not pay because of inflation, according to Vedomosti. Holding cash is justified as a short-term reserve, they said, while the remaining money is better spread across income-generating instruments. [ 3 ]
On 1 October the Bank of Russia reported that growth of cash in circulation in September fell 14.5% from August, with the volume of cash rising by 370.9 billion roubles. The average monthly increase for February to September fell to 419 billion roubles, from 425.8 billion roubles a month earlier. [ 3 ]
Why it matters
The poll shows cash slightly ahead of bank accounts as Russians' preferred store of savings, a finding reported by two news agencies and a business outlet. Experts cited by Vedomosti warned that holding all savings in cash loses value to inflation.
Key facts
- In September 38% of Russians named cash as the best way to store savings, according to an inFOM (инФОМ) poll reported by Izvestia. [ 3 ]
- The share is 6 percentage points higher than a year earlier. [ 3 ]
- 37% of respondents preferred bank accounts. [ 3 ]
- Natalia Belova of Rosgosstrakh Zhizn (Росгосстрах Жизнь) tied the rise to a wish for direct access to money without depending on banking apps and connectivity. [ 3 ]
- Freedom Global analyst Vladimir Chernov cited tighter control over transactions and lower deposit rates as factors. [ 3 ]
- On 1 October the Bank of Russia reported that growth of cash in circulation in September fell 14.5% from August, with cash volume up 370.9 billion roubles. [ 3 ]
Confirmed by several sources
Still unclear
- The poll's sample size, method and exact dates. None of the documents give these details.
- The explanations for the shift toward cash. They are the views of individual experts quoted in a single outlet.