Stocks or deposits: where should you put your money?

Bank deposits and stocks serve fundamentally different purposes. A deposit preserves your money. Stocks give you the chance to profit from business growth.

The choice between them comes down to your investment horizon and tolerance for market swings. Deposits are predictable, but their returns rarely outpace inflation. Stocks can deliver significantly more, but they require patience and an understanding of risk.

Beyond stocks and ETFs, Regolith also offers investments in Pre-IPO companies and funds backed by real assets – giving you the tools to build a portfolio that works across multiple dimensions.

Comparison by key parameters

Deposits and stocks differ in mechanics, returns, and risk profile. Below, we break down each parameter to help you determine which instrument best fits your goals.

Minimum investment

Bank deposits typically allow you to start with a modest amount. The stock market has also become more accessible – you can buy a single share for just a few dollars.

On Regolith, the minimum investment is $50 – on par with most bank deposits.

Accessibility

Opening a bank deposit takes minutes – right from your mobile banking app. Buying stocks requires a brokerage account or access to an investment platform. Today, the gap has narrowed considerably: investing in stocks or a stake in a company can be just as straightforward as transferring money between accounts.

Liquidity

Liquidity refers to how quickly you can sell an asset and access your funds without a significant loss in value.

A demand deposit lets you withdraw money almost immediately, though usually at a lower interest rate. Stocks can be sold during market hours. However, timing matters: selling during a downturn means locking in a loss. In this regard, deposits offer more stability – the principal amount in your account doesn't fluctuate.

Risk

The primary risk with stocks is price volatility. Values can rise or fall depending on news, earnings reports, and broader market conditions. Bank deposits carry less risk: in Russia, deposits are insured by the government for up to 1.4 million rubles, including accrued interest. This limit applies to all accounts held at a single bank combined. For amounts above this threshold, it's worth spreading funds across multiple banks.

Stocks carry a different kind of risk. Beyond market fluctuations, there's company-specific risk – a business can lose a key client, face regulatory pressure, or fall behind competitors. This is why experienced investors diversify across multiple companies or use ETFs, where diversification is built into the fund's structure.

Investment horizon

Deposits are typically opened for periods ranging from several months to a few years. Stocks are better suited for longer timeframes – three to five years or more. Over that period, short-term volatility smooths out and the impact of temporary drawdowns diminishes.

Deposits

What are bank deposits?

A bank deposit is money placed with a bank for a fixed period. The bank uses these funds for lending and other operations, and the depositor receives a fixed rate of return.

Pros and cons of deposits

The main advantage of a bank deposit is predictability. The terms are known upfront – the interest rate and the duration. It's also a hands-off instrument: there's no need to monitor markets or analyze corporate financials.

Interest on deposits can be calculated in two ways: simple interest – applied to the original amount, or compound interest – where earned interest is added to the principal, and the next period's return is calculated on the larger balance. The latter is more profitable over longer holding periods.

Deposit rates in Russia in 2026 are running at 18–22% per year. At first glance, that sounds generous – but inflation matters. With inflation at 8–10%, the real return on a deposit is significantly lower than the headline rate. On top of that, high rates are a temporary phenomenon tied to the Central Bank's key rate. When the rate comes down, yields on new deposits fall with it.

Over the long term, the stock market has historically outpaced inflation. The S&P 500 has delivered average annual returns of roughly 10% in dollar terms over the past 30 years. With dividends reinvested, that figure is higher. That said, in any given year the market can drop 20–30%, which demands patience and a long-term mindset.

The main downside of a bank deposit is modest returns: in many cases, they only partially offset inflation. And if you close a deposit early, the bank will recalculate interest at the minimum rate – meaning part of your earnings is lost.

There's also currency risk to consider. A ruble-denominated deposit shields you from market volatility, but not from a weakening currency. If the ruble loses 15% in a year while your deposit earns 20%, the real return in hard-currency terms is minimal.

Stocks

What are stocks?

A stock is a security that represents ownership in a company. In simple terms, buying a share makes you a co-owner of the business. The size of your stake depends on how many shares you hold.

Investor returns come from two sources: dividends – a portion of profits distributed to shareholders, and capital appreciation – when the company grows and its share price rises.

Pros and cons of investing in stocks

The main advantage is growth potential. If a company develops successfully, its share price can multiply. On Regolith, you can invest in leading global companies through ETFs, the SLAT strategy, IPO deals, and Pre-IPO opportunities – building a portfolio across multiple sectors.

The main disadvantage is that returns are not guaranteed. Stock prices depend on market conditions, company performance, and macroeconomic factors. Prices can go up as well as down.

That said, international stocks offer currency diversification. Assets are denominated in dollars or euros, which protects your portfolio against ruble depreciation – even if the share price itself stays flat.

Which is more profitable: stocks or a deposit?

There's no definitive answer – these instruments serve different purposes. A deposit provides stability and capital preservation. Stocks offer the opportunity to participate in business growth and earn from their success. Which one suits you better depends on your investment timeline, risk tolerance, and tax situation.

• Taxes. Interest on bank deposits is taxed if total earnings exceed a tax-free threshold tied to the Central Bank's peak key rate for the year. Stock income – dividends and capital gains – is subject to personal income tax at 13% (or 15% for higher earners). However, holding stocks for more than three years qualifies you for a long-term ownership benefit that exempts part of your gains from tax.
• Psychology. Deposits appeal to those who value stability and prefer not to follow markets. Stocks require engagement: you need to understand how markets work and stay calm when your portfolio value temporarily dips.
• Timeline and goals. If you might need the money within the next few months, a deposit is the more practical choice. For goals on a three-to-five-year horizon, investors tend to favour stocks: over longer periods, equity markets have historically delivered higher real returns after inflation.

A combined approach. In practice, many investors use both instruments: part of their capital sits in a deposit as a financial safety net, while the rest goes into stocks for growth. The right ratio depends on your age, income, and financial goals. There's no universal formula, but the underlying principle is straightforward: the longer your horizon, the larger the share of your portfolio you can allocate to equities. For example, on Regolith you can invest in an S&P 500 ETF (SPY), AI-focused funds (AIQ), robotics funds (BOTZ), participate in IPOs, or invest in companies like SpaceX at the Pre-IPO stage.

The bottom line

Deposits and stocks aren't competitors – they're two instruments with different functions. Deposits are suited for short-term savings and your financial safety net. Stocks and other market instruments are built for long-term capital growth and inflation protection.

The key principle: don't choose between them – allocate based on your goals. Money you may need in the coming months is better kept in a deposit. Capital you can commit for three years or more belongs in market instruments.

On Regolith, you can start with as little as $50 and gradually build a portfolio – from ETFs tracking major global indices to IPO and Pre-IPO investments in promising technology companies. Everything in one dashboard, with transparent terms and access to international markets.