Russia’s VTB Bank offers up to 8 per cent interest for yuan deposits, as it hoards renminbi to skirt dollar sanctions
- Deposits can be opened remotely through VTB Online with a minimum amount of 100 yuan (US$16)
- The yield on US dollars when placed for 3 months is 8 per cent per annum and 7 per cent for euros, while the six-month rate for roubles is 21 per cent, according to VTB
VTB Bank is offering a Chinese yuan savings account with a maximum interest rate of 8 per cent, as the Russian lender faces strict sanctions from the US and UK as those nations look to financially isolate Russia through widening penalties.
Deposits can be opened remotely through VTB Online with a minimum amount of 100 yuan (US$16), according to a press release Wednesday. At VTB branches, clients can deposit a minimum of 500 yuan.
VTB said the new offer will be the most profitable alternative to deposits in other foreign currencies. The yield on a short-term deposit in dollars when placed for 3 months is 8 per cent per annum and 7 per cent for euros, while the six-month rate for rouble deposits is 21 per cent, according to VTB.
The bank also said that over the past week customers have placed more than 2 trillion roubles (US$15 billion) in traditional savings products.
“In light of the rising dollar and euro exchange rates, many clients are demonstrating interest toward investing in other currencies, and the yuan is one of the most affordable and promising options for investing funds,” the bank said in the statement.