Once savings grow past the size of your emergency fund, the question comes up: leave them in a savings account, or buy OFZ federal government bonds. Both are considered conservative instruments and both deliver predictable income, but they work differently. The difference shows up in taxes, in behavior when the key rate changes, and in how quickly you can get your money back.
The rates and returns in this article are approximate, for 2026. They change along with the Central Bank's decisions, so check current quotes and bank offers before buying.
How both instruments work
A savings account is a contract with a bank: you give it money for a fixed term and the bank returns it with interest. The rate is set at opening and doesn't change until the end of the term. If the bank loses its license, deposits of up to 1.4 million rubles per person per bank are returned by the state deposit insurance system, with a higher limit for certain special situations.
An OFZ bond is a debt note from the Ministry of Finance. You buy the bond on the exchange through a brokerage account, receive coupon payments (usually every six months), and get the face value back at maturity — typically 1,000 rubles per bond. The borrower here is the state itself, so credit risk is the lowest among ruble-denominated instruments. But there's no insurance like with deposits — it isn't needed, because the guarantor is the same state budget.
The types of OFZ bonds
- OFZ-PD, with a fixed coupon. The payout amount is known in advance all the way to maturity. The most popular type among retail investors.
- OFZ-PK, with a floating coupon tied to the money-market rate. The coupon moves with rates, while the bond's price barely fluctuates.
- OFZ-IN, with a face value indexed to inflation. These protect against rising prices, but the coupon on them is small.
- Retail OFZ bonds are issued occasionally and sold through agent banks. Convenient for beginners, but usually can't be sold on the exchange before maturity.
Comparison by key parameters
| Parameter | Savings account | Fixed-coupon OFZ bond |
|---|---|---|
| Return | Fixed for the term of the deposit, usually up to 1-3 years | Fixed until maturity, term from 1 year to 15 years or more |
| Protection | Insured up to 1.4 million ₽ per bank | A state obligation, with no cap on the amount |
| Early withdrawal | Usually with loss of interest | Sold on the exchange at the current price, money in 1-2 days |
| Income tax | 13-15% on interest above the tax-free threshold | 13-15% on all coupons and on profit from selling |
| Costs | None | Broker's commission, usually 0.03-0.3% of the trade |
| Minimum amount | Often from 1,000–10,000 ₽ | Price of one bond, around 1,000 ₽ |
| Complexity | Opens in an app within a couple of minutes | Requires a brokerage account and basic market knowledge |
A savings account sells you today's rate; a bond sells you a rate for years ahead. The choice between them largely comes down to where you think rates are headed.
Returns: what you actually get
Comparing nominal rates isn't enough. Three things matter: tax, compounding, and the term over which you lock in the return.
Deposit interest is taxed only on the portion above the tax-free threshold, which equals one million rubles multiplied by the highest key rate of the year. When rates are high, that's tens of thousands of rubles of tax-free income, and for savings within a few million rubles the tax often either doesn't apply or is small. OFZ coupons are taxed on the full amount, with no threshold. So at an identical nominal return, a deposit turns out more profitable for a smaller sum.
On the other hand, OFZ bonds have the advantage of length. When rates are high and the market expects them to fall, banks only offer generous terms for short periods, and a year later you'd have to reopen the deposit at a lower rate. A long bond locks in a high return for several years. If rates do fall, the bond's price rises, and you can sell it for a profit on top of the coupons.
A numbers example
Say you have 800,000 rubles for three years. A bank offers a one-year deposit at a hypothetical 15% annual rate, while OFZ bonds maturing in three years trade at a yield to maturity of around 14%. At first glance the deposit wins. But a year later you'll have to reopen it, and if the key rate has fallen by then by a few points, the next year will bring only 10-11%, and the third year possibly even less.
The bond, on the other hand, will give you its 14% for all three years if you hold it to maturity. Tax on the coupons will eat up about an eighth of the income, while for a deposit of that size the tax most likely won't apply, or will be token. In the end the two options come out close, and the decisive factor becomes your own rate forecast. If you think rates will stay high for a long time, a deposit is simpler and no worse. If you expect a decline, a bond locks in the return and gives you a shot at a price gain.
Risks worth knowing about
With a savings account
- Reinvestment risk: when the term ends, rates may turn out lower.
- Loss of interest on early closure, if you need the money sooner.
- Any amount above the insurance limit at one bank is not protected.
With OFZ bonds
- Interest-rate risk: if rates rise, the bond's price falls. That's harmless if you hold to maturity, but risky if you need to sell early.
- Liquidity risk on certain days: during sharp market moves, the gap between the buy and sell price widens.
- Operational hassle: a brokerage account, a tax base on trades, the need to track maturity dates.
Credit risk on OFZ bonds technically exists for any borrower, but for ruble-denominated government debt it's minimal: the budget meets its obligations in its own currency first.
One more practical point concerns payouts. Interest on a savings account can be paid out monthly or added to the deposit balance, in which case compounding kicks in. OFZ coupons arrive in the brokerage account every six months, and you need to reinvest them yourself, or the money will just sit there earning nothing. Many brokers let you set up automatic reinvestment, but more often it's a manual step.
Who each one suits
A savings account suits you if the amount fits within the insurance limit, your horizon is under two years, you don't want to deal with a brokerage account, and you value simplicity. A deposit is especially attractive during periods when banks compete for money and offer rates above short-term OFZ yields.
OFZ bonds suit you if you're saving toward a goal three to five years out or more, want to lock in the current return for a long time, the amount exceeds the insurance limit at one bank, or you already have an individual investment account with tax benefits. In such an account, bonds become noticeably more attractive than a deposit.
A note on individual investment accounts
The new-type individual investment account lets you get tax deductions on contributions and an exemption from income tax if you meet the minimum holding period. The terms and limits change from time to time, so check them with your broker and on the tax authority's website. For someone willing to hold bonds for many years, such an account can noticeably boost the final return compared to a deposit. Money in this account can't be partially withdrawn without losing the benefits, so an emergency fund shouldn't go there.
How to combine both instruments
You don't have to pick one or the other. Here's a workable scheme for most households.
- An emergency fund in a savings account and short deposits, so the money is accessible any day.
- Savings for 1-2 years — for a renovation or a car, say — in a deposit with a good rate, split across two or three banks for a large sum.
- Money for a horizon of three years or more in an OFZ bond ladder with staggered maturity dates: every year or so part of the bonds matures, and you decide where to put the money next.
- If you're worried about rising prices, add a small share of inflation-indexed OFZ bonds.
The main rule of conservative savings: decide the term and purpose of the money first, then pick the instrument. A deposit wins on simplicity and on a short horizon; OFZ bonds win on length and flexibility. Together they cover almost every need that doesn't call for stocks.
FAQ
Can you buy OFZ bonds without a brokerage account?
Only retail OFZ bonds, when they're issued: they're sold through branches and apps of a few large banks. Regular issues trade on the exchange, and buying them requires a brokerage account or an individual investment account.
What happens to OFZ bonds if the broker goes bankrupt?
Bonds are recorded in the depository under your own name and aren't part of the broker's assets. In that situation they're transferred to another broker, though the process can take time.
Do you have to pay tax on coupons yourself?
No, the broker withholds the tax automatically as a tax agent. For deposit interest, the tax authority calculates the tax and includes it in a single consolidated notice, which you pay together with your property taxes.
This article is for informational purposes only and does not replace professional advice. Prices are approximate and current as of the review date. Found an error? Let the editors know via the contact page.
