Classical savings of residents in Magadan recorded a rise of 11%
In the Magadan region of Russia, the demand for classic savings tools, such as savings accounts and deposits, remains robust. According to VTB, over half (55%) of the new deposits in the bank are for a term of six months, with a third (33%) for a term of three months.
This preference for traditional savings instruments can be attributed to several factors. Nationwide, Russian banks have been rejecting a significant percentage of loan applications—up to 75-80% for consumer and car loans, and around 60% for mortgages—due to rising household debt burdens and cautious lending practices amid inflation and income pressures [1]. This constrained access to credit encourages residents in regions like Magadan to rely more on savings accounts and deposits as safer financial reserves.
Regional economic factors also play a role. Wage stagnation relative to inflation and cautious consumer behavior further incentivize saving rather than borrowing or spending freely. Although wage increases are seen in some areas, the uneven economic situation and purchasing power constraints push households towards accumulating savings [3][2].
The growth in savings by Magadan residents in VTB is a reflection of their continued trust in the bank for their savings needs. As of mid-year 2025, the total savings of Magadan region residents in VTB has increased to 16.2 billion rubles, marking an 11% increase compared to the same period last year. This growth in savings is a significant portion of the expected total ruble savings in Russia, which is estimated to reach 67 trillion rubles by the end of 2025 [4].
VTB's Managing Director for the Magadan region, Eleonora Syrenchko, commented that the demand for classic savings tools remains strong due to their yields outpacing inflation. She added that this conservative financial behavior, shaped by restricted credit availability and economic uncertainty, underpins the robust demand for traditional saving instruments in the region [5].
Since the beginning of 2025, 12,000 classic savings products have been opened at VTB by Magadan residents, further highlighting the region's commitment to saving for the future [6]. The yields offered by these classic savings tools in VTB are higher than the current rate of inflation, providing an attractive incentive for residents to save with the bank [7].
In conclusion, the strong preference for classic savings tools like savings accounts and deposits in the Magadan region serves as a financial buffer, leading to an overall increase in the savings volume among residents. This conservative financial behavior, shaped by restricted credit availability and economic uncertainty, underpins the robust demand for traditional saving instruments in the region.
Personal-finance considerations, such as limited access to credit due to rising debt burdens and cautious lending practices, drive Magadan residents to prioritize traditional savings tools for their safety and higher yields. The growth in personal-finance savings by Magadan residents in VTB, reaching 16.2 billion rubles as of mid-year 2025, is a testament to their conservative personal-finance behavior and sustained trust in the bank.
