The Central Bank of Russia has described a new housing savings agreement that will allow individuals to build savings with a bank and then use those funds to improve their housing conditions, including for a mortgage down payment. The framework, enabled by a law adopted by the State Duma of the Russian Federation, takes effect on 1 January 2027. It combines a dedicated deposit product with the possibility of follow-on borrowing, subject to the bank’s eligibility criteria at the end of the savings term. The deposit must be opened for at least three years and can be topped up at any time. Banks will be required to open the deposit and pay interest at the rate set in the agreement. At the depositor’s instruction, the accumulated funds and accrued interest can be used to buy housing or finance participation in shared or single-family home construction. After the agreement expires, a depositor who meets the bank’s criteria can obtain a loan equal to the remaining amount needed to buy the property. Savings can also be transferred to another bank for use as a mortgage down payment or to repay outstanding debt. The law also sets withdrawal rules. Depositors may cancel the agreement without losing accrued interest no earlier than 18 months after it begins. They may also withdraw funds with accrued interest before expiry, but no earlier than 12 months after commencement, if the money is used to improve housing conditions or if the bank refuses to issue a loan when the savings agreement ends. In other early cancellation cases where the funds are not used for housing purposes, interest will be paid at the demand deposit rate unless the agreement provides a higher rate. Deposits under these agreements will be covered by the deposit insurance system up to RUB 10 million per bank.

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