Russia's state-run Sberbank raises individual account rates

MOSCOW, November 29 (RIA Novosti) - Russia's state savings bank Sberbank has increased rates for ruble-denominated individual deposit accounts by 1 to 2.5 percentage points from December 1, the bank said on Saturday.

The new rates will range from 5.25% to 12% depending on a deposit size and period, the bank said in a new release.

Deposits on individual Sberbank accounts declined 3.2% in October as over 95 billion rubles ($3.5 billion) was withdrawn amid fears fueled by the global financial crisis. The bank holds over 50% of the country's deposits.

The hike in rates is seen as Sberbank's move to encourage a national currency inflow in line with the government's recommendations.