What is a multicurrency deposit: how to open it, a list of the best banks with favorable rates

Multicurrency deposits are characterized by the fact that clients have the opportunity to keep money in the bank in both national and foreign currencies (dollars and euros).

If desired, you can change their ratios without violating the deposit period or terminating the contract. This feature is specified in detail when concluding a multi-currency deposit, so there cannot be any fines or interest withdrawals.

What it is

A multicurrency deposit is a deposit that allows you to store money in several currencies. As a rule, the most popular ones are taken - dollars, euros and rubles.

How does it work

In essence, a multicurrency deposit protects its owner from currency risks. For example, I have a certain amount on hand, but where should I put it? When choosing a multi-currency deposit, I simultaneously place this amount in rubles, euros and dollars in the ratio that seems most attractive to me. It is noteworthy that I can change these proportions at any time.

Who needs

A multi-currency deposit is more suitable for people who are emotional about currency fluctuations. By choosing such a deposit, you do not have to worry that the exchange rate will weaken and you will receive low annual payments.

Is it possible to live on the income from such a deposit?

It is quite difficult to live on interest from a banking product, but it can be considered as an additional source of income. For example, you want to receive 30,000 rubles per month. The interest rate on a ruble account is about 5%, on a dollar account – 2%. To receive about 30,000 per month, you must have approximately 6.5 million in your account.

Peculiarities

As when opening a regular deposit, when opening a multicurrency deposit, the bank sets a minimum amount and interest rate for each currency. Other conditions, such as deposit period, replenishment and partial withdrawal, capitalization, etc., are most often the same. With a multi-currency deposit, you can earn income both from interest and from the difference in exchange rates when converting funds between accounts.

In order to make money on changes in exchange rate differences, you need to have basic knowledge, monitor and study trends in the foreign exchange market.

The shares of currencies in the account are formed by the client. Banks usually do not limit the number of conversions. When converting funds, there must be a minimum balance for each currency, the amount of which is pre-agreed in the agreement. The Internet banking service greatly facilitates and speeds up the management of funds and allows you to carry out financial transactions around the clock.

Interest rates on multicurrency deposits can reach the rates on regular deposits. The minimum deposit size may depend on the conditions of a particular bank and range from 10 thousand rubles. up to 50 thousand rubles The size of the investment sometimes affects the interest rate, in some cases the rate is set individually. Further in the article we will compare the conditions of banks with multi-currency deposits.

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Advantages and disadvantages

This banking product has advantages and disadvantages.

First I'll talk about the pros:

1. Opportunity to save savings during a crisis.
2. In the event of a bank bankruptcy, it will return up to 1.4 million rubles to the depositor.
3. You can change the proportions in your portfolio if one of the currencies begins to weaken.
4. There is no need to open one account in different banks and enter into several agreements.

Minuses:

• low interest rate for the dollar and euro – around 2%;
• unfavorable internal conversion;
• high entry threshold.

How to choose a multi-currency deposit?

It is better to choose a multicurrency deposit for many reasons. All of them in one way or another are reflected in the final profit from placing a deposit.

The main criteria for evaluating multicurrency deposits may be:

• the difference in rates between multi-currency deposits and their counterparts in the same currency. Valuation should be carried out for each monetary unit.
• conversion rate from one currency to another. It should be more profitable than when withdrawing money from one deposit, buying currency and placing it on a new deposit.
• the presence of additional restrictions such as a minimum balance in one of the currencies. This largely negates the main advantage of such deposits.

It is better to calculate all comparative gains and losses based on the expected amount of the contribution. Half a percent on 30 thousand rubles and 3 million to varying degrees compensate for the efforts of the investor.

It is even more important, and much more difficult, to correctly assess the risk of currency fluctuations during the period of placing a deposit. If there is no such risk, then a multicurrency account loses its practical meaning.

It is also worth considering other important deposit conditions:

• the possibility and conditions of full or partial withdrawal before the end of the term, replenishment;
• the procedure for calculating interest on a deposit;
• availability of interest capitalization, etc.

The best practical effect can be achieved by combining all these and other relevant criteria in relation to a specific situation and amount.

Conditions for multicurrency deposits from Russian banks

When opening a multicurrency deposit, each bank puts forward its own requirements. I have selected several institutions for you so that you can compare conditions.

Description

Currently, banking organizations offer individuals a wide variety of deposits. Someone opens a deposit in a bank in US dollars, someone in euros, and someone in Russian rubles. All investors want to get maximum profit from their investments, and some also expect to make money on the difference in exchange rates. It is more convenient and profitable to do this if you open a multi-currency deposit.

Many banks in 2021 provide the opportunity to open a multi-currency deposit. What is multicurrency? For a bank account, multi-currency means using several different currencies. Multicurrency deposits in banks are the ability to store funds in accounts in different currencies, united by one agreement.

The main condition for such a deposit is the completion of conversion operations (transferring one currency to another). At the same time, accrued interest is retained, and there is no additional commission.

Which multicurrency card is better?

Summarize. Given the wide variety of options, it’s worth choosing a card with multi-currency accounts based on additional features. Think about what is more important to you? Low cost/free service? The ability to withdraw cash without paying constant “tribute” to ATMs? Or maybe a refund of money spent on purchases?

Please review the suggestions above carefully. You can find out more about the terms and conditions on the 2021 debit card comparison page.

And those who travel frequently will certainly be interested in travel insurance ratings. After all, if you save, then 100%, right?

Multi-currency Home Credit cards

They confidently compete with Alfa Bank in terms of conditions for travelers, offering all the usual options, including bonuses and discounts on services.

Key benefits:

• cashback up to 11%
• Withdraw money without commission anywhere in the world
• free insurance policy
• free access to airport business lounges

EVERYTHING YOU NEED ABROAD

• Home Travel

Multi-currency card with a range of services, bonuses and discounts for travelers.
Including free legal support, baggage packing, unlimited internet and comprehensive insurance (medical + lost luggage + non-travel). Detailed conditions

FOR ESPORTS FANS

• Home Credit InGame

Passionate gamers will enjoy free service, up to 5% cashback on regular purchases and up to 10% on purchases from bank partners. And also commission-free cash withdrawals, a large maximum cashback amount (even 9,000 per month can be returned) and online delivery of a multi-currency card by courier.

Find out details

Why are cartoons closed?

Bank representatives claim that the main reason is low demand from depositors.

In 2016, the ruble exchange rate finally stabilized. Experts do not expect any serious fluctuations this year either. Due to ridiculous rates on foreign currency deposits, customer interest in such products has dropped significantly. And multi-currency accounts with the possibility of quick conversion are completely out of use.

A representative of Promsvyazbank notes that even among wealthy depositors, demand for the Multicurrency Basket deposit fell from 15% in 2015 to 5% by the end of 2021. The bank explains this by a decrease in interest in foreign currency deposits due to their low profitability. And also a drop in demand for travel abroad.

But not all banks followed the lead of their clients. Four banks from the TOP 10 still accept depositor funds for placement in three to five currencies.

Let's take a closer look at the conditions of current multi-currency deposits.

Deposit "Multi-currency basket" from Promsvyazbank

A deposit can be opened simultaneously in three currencies. In this case, one of them will be considered the main one (at the choice of the investor), and the other two will be considered additional.

The minimum deposit amount in the main currency and the minimum balance start from 10,000 rubles / 300 US dollars / 300 euros. The “fireproof” balance in additional currencies is not less than 10 rubles / 10 dollars / 10 euros.

The investor can choose two maturity options: 184 and 397 days.

The rate depends on the amount and term of the deposit: 6.50-7.0% in rubles, 0.2-1.4% in US dollars and 0.15% in euros. Owners of premium bank service packages receive an increase to the base rate (up to 0.5% per annum).

You can replenish the “Multi-currency basket” with any amount. But the acceptance of additional contributions stops 30 days before the end date of the deposit. Partial withdrawal within the minimum balance of funds is possible without loss of interest.

Playing on courses: is it worth opening a multi-currency deposit?

Multicurrency deposits theoretically allow you to protect your savings from currency fluctuations. Is it worth opening such deposits?

Standard basket for multi-currency deposits in large Russian banks - ruble, dollar and euro (Photo: Lori)

When the economy is unstable, the best way to protect your savings is to spread them across different currencies, financial advisers advise. This can be done with multi-currency deposits that combine accounts in different currencies. Their shares in the basket are formed at the request of clients, for example, a third in rubles, dollars and euros. According to Igor Chuchkin, head of the card, deposit and commission business department of Uralsib Bank, interest in these products is growing during a period of instability in the foreign exchange market. RBC analyzed multi-currency deposits in the largest retail banks. What conditions do they offer and what should you pay attention to? Rates The standard combination of currencies in large Russian banks is the ruble, dollar and euro. Of the 15 largest banks in terms of time deposits, only seven have multicurrency deposits. Some credit organizations offer exotic options. Thus, Svyaz-Bank, as part of a multi-currency deposit, places client funds in Chinese yuan, Swiss francs and pounds sterling. Funds in yuan can also be kept at AvtoVAZbank. The highest interest rates were on the ruble part of the multicurrency deposit at Otkritie Bank. When depositing an amount of more than 100 thousand rubles into the account. the client can count on a profit of 10.1% per annum. A slightly lower rate on rubles can be obtained from Uralsib Bank (9.6%) and B&N Bank (9.2%). However, the foreign exchange rates on these deposits - in dollars and euros - are relatively low. The highest rates on foreign currency accounts are offered by Otkritie Bank (2.75% per annum in dollars) and B&N Bank (2.45% per annum in euros). Uralsib, under the terms of its multi-currency deposit, offers only 1.3% per annum for both currencies. These rates are lower than the most favorable offers on foreign currency deposits in July among the largest banks. Then B&N Bank and Moscow Credit Bank offered 4.5% and 4% for deposits in dollars and euros.

Minimum balance All banks have a minimum balance for each of the three accounts included in the multicurrency deposit. For example, Sberbank has a lower limit of €5, $5 and 5 rubles. That is, if you deposit €100, $100 and 10 thousand rubles into your account, you will be able to transfer 9995 rubles, $95 and €95 between your accounts. But the rate in such a deposit for all currencies is 0.01% per annum. If, in order to get a higher rate (see table), you agree to raise the minimum balance level higher - €500, $500 and 15 thousand rubles, please note that the amounts in the accounts must be significantly larger. Otherwise, you simply will not be able to actively use the possibilities of a multi-currency deposit - sell and buy currencies. When opening such a deposit, you should also pay attention to the possibility of partial withdrawal and replenishment. All banks usually allow you to replenish it, but not to withdraw it. For example, Sberbank prohibits partial withdrawal of a deposit, and Promsvyazbank has provided for this possibility up to the minimum balance. Currency transactions The number of transactions between multicurrency deposit accounts is not limited in any way. But it’s not worth using such a deposit for currency trading in order to make money. An expert at the Institute of Financial Planning, Saida Suleymanova, says that transactions will be carried out at the bank’s exchange rate and it may not be profitable at all. For example, on Monday, August 10, the buying and selling rates for the US dollar at Promsvyazbank were 60.64 rubles. and 65.64 rub. In Raiffeisenbank the difference was 5.15 rubles, in Sberbank - 6 rubles, in B&N Bank - 4 rubles. Some banks allow you to carry out transactions on multi-currency deposits in the Internet bank, while others do not. This is worth clarifying when opening an account, as well as whether the bank reports the exchange rate when conducting an operation on the Internet. “The final rate is shown when the transaction is confirmed,” says Anna Tarasenko, head of the center for deposit products at B&N Bank. “Our conversion is carried out instantly, so the rate is determined at the time of the request,” explains Natalya Voloshina, head of the department of deposit and settlement products of Promsvyazbank. Pros and cons In theory, a multi-currency deposit looks like an ideal investment choice when exchange rates can change by several percent over a week. But in practice, the demand for this product in Russian banks is falling. Chuchkin from Uralsib says that, despite the periodic surge of interest in such products, their number has been steadily declining over the past six months. At the end of June 2015, MDM Bank removed multicurrency deposits from its line. The reason is the low popularity of this product among clients, said Dmitry Yurin, Deputy Chairman of the Board of MDM Bank. The fact is that multicurrency deposits do not have any unique features. Everything in this product - accounts in different currencies, partial replenishment of deposits, the ability to change currencies at unfavorable bank rates - can be obtained from banks. And additional restrictions of individual banks, for example Raiffeisenbank, which forces them to keep at least 50% in rubles on a multi-currency deposit, on the contrary, force depositors to look for other options for placing funds. “Multi-currency deposits are absolutely a marketing thing. That’s why there are so few of them in banks’ portfolios,” says VTB24 Vice President Ashot Simonyan. VTB24 does not have such a deposit. Suleymanova, a financial advisor at the Institute of Financial Planning, does not advise opening such deposits today: “I had experience using a multi-currency account. But everything turned into the fact that out of three currencies I used two, and even then passively.” Strategies for forming a currency basket due to the fall of the ruble have become much simpler. “The best investment is a deposit in American currency. After the Fed rate hike, which we expect in September, the already confident growth of the dollar will continue,” said Vladimir Pantyushin, senior strategist at Sberbank CIB, last week.

"SmartVlad - Multicurrency" from Tinkoff

"Multik" from Tinkoff is a time deposit in four currencies: ruble, dollar, euro and pound sterling. According to reviews on the Internet, it is considered the best multi-currency product among Russian banks: four currencies, good profitability, replenishment of any amount and even partial withdrawal of funds without loss of interest.

The minimum deposit amount starts from 50,000 rubles or 1000 USD/ 1000 EUR/ 1000 GBP. You can top up the “cartoon” for any amount from 10 rubles or 1 USD.

The rate depends only on the term of the deposit. Tinkoff offers two profitability options:

• “Standard rate” (you can top up your deposit at any time, but no later than a month before the expiration date)
• “Increased rate” (you can top up the deposit only in the first 30 days from the date of opening)

Annual interest rate ranges: 5-8% in rubles, 0.1-1.5% in US dollars, 0.1-0.4% in euros and pounds sterling. To open a deposit at a bank office you will have to pay 1000 rubles.

Minimum conversion amount: 1000 rubles or 10 USD Partial withdrawal of a deposit in the amount of 15,000 rubles or 500 USD. possible 60 days after opening a deposit.

We are looking for a suitable bank

It is important for depositors to choose a reliable bank that will suit several parameters at once:

1. Insurance of foreign currency deposits is compensation provided by the bank in respect of which an insured event occurred. It is important to pay attention to the terms and conditions of refunds. As a rule, deposits in foreign currency are recalculated according to the Central Bank exchange rate current at the time of the insured event.
2. Recently, the Central Bank has been pursuing a strict policy towards banks, depriving many of them of their licenses. Most often, these include small regional companies, but sometimes it comes to large banks.
3. A reliable bank must have a good reputation. To make the right choice, it is worth studying the financial statements of banks, which are publicly available. It is especially worth paying attention to such parameters as profit margins and assets. The higher a bank is in the rating, the better it does.

What's happening to multi-currency accounts in 2017?

In 2017, banks massively closed their multi-currency deposits. Or they are transferred to the category of premium products. “Cartoons” have not been in the VTB 24 line for a long time. Raiffeisenbank does not offer them either.

In mid-January, Sberbank also announced that it would stop accepting funds for multi-currency deposits. The reason is low demand from customers.

In 2016, the share of “three-currency” deposits in the total volume of deposits was about 0.01%. As Sberbank statistics show, today foreign exchange depositors prefer to keep currencies separately: on dollar and euro deposits (“Save”, “Manage” and “Replenish”).

Gazprombank has left multi-currency deposits only for wealthy clients. The minimum amount for opening a deposit is 1 million rubles (for all five accounts in ruble equivalent). You can issue a “cartoon” at Gazprombank in rubles, euros, US dollars, pounds sterling and Swiss francs.

On the official website of Alfa-Bank, “Multicurrency” is still listed in the list of current deposits. But in practice, it is no longer possible to open a multi-currency deposit. Moreover, the bank transferred existing depositors to single-currency products.