When it comes to improving well-being, many Ukrainians seem to place more hope in winning the lottery or the promises of horoscopes than in financial instruments. We do not take into account that in the world there are many cases when people far from the financial sector gained wealth through investments.
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Taras Kotovych, an analyst at the ICU investment group, spoke to UNIAN about the situation on the Ukrainian investment market and what assets are worth investing in now, in times of instability.
Deposit in hryvnia
According to Kotovych, today the average rate on annual deposits in hryvnia is 13.16%. If you invest 50,000 hryvnia per year, then at this rate the amount of accrued interest will be 6,840 hryvnia. After paying taxes (18% personal income tax and 5% military levy), the net income will be 5,267 hryvnia. However, as the analyst noted, taking into account inflation, which is expected to be at the level of 8%, the purchasing power of this amount will decrease by 4.4 thousand hryvnia. Therefore, the actual profit will be only about 845 hryvnia.
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Deposit in dollars
Kotovych also noted that for 50,000 UAH you can buy about 1,202 dollars, if you use the average purchase rate of 41.1 UAH per dollar. At a rate of 1.2% per annum on a deposit, at the end of the year you can get 1,213.2 dollars. If the dollar rate increases by 2 UAH and amounts to 43.66 UAH, then after the currency exchange the amount will be 52,285 UAH. This is 2,285 UAH more than invested, but taking into account inflation, as the analyst noted, for this amount you can buy fewer goods than at the beginning of the year.
Deposit in euros
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When investing in euros, Kotovych explained that for 50,000 UAH you can buy about 1,031 euros. At a rate of 0.44% per annum, the profit after taxes will be 3.49 euros. If the euro exchange rate increases to 49.9 UAH, the amount will be slightly less than the initial investment. However, if the exchange rate increases to 49.3 UAH, the investor will receive 51.6 thousand UAH, which brings a small profit of 1.6 thousand UAH.
Domestic government bonds (DGBs)
The most profitable instrument for preserving capital today is domestic government bonds, the expert noted. The Ministry of Finance offers issues of domestic government bonds with a yield of 16.35% per annum. If you invest UAH 50,000 in domestic government bonds, in a year you can get UAH 58,175, taking into account accrued coupons (UAH 8,175). However, as the expert noted, taking into account inflation, the net profit will be approximately UAH 3,500, which is much more profitable than deposit instruments.
What to choose?
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Kotovych concludes that OVDP (domestic government bonds) are the most profitable and least risky instrument for saving money, compared to deposits in hryvnia and foreign currency.
“Government bonds are clearly the most profitable savings option, compared to hryvnia deposits at similar rates, but in the absence of taxes. And the most predictable and predictable compared to foreign currency deposits, because there is no “if” here,” the expert states.
Kotovych also explains that if the hryvnia weakens sharply, foreign currency deposits could bring in significantly more hryvnia funds after conversion. However, this scenario is unlikely.
“If the weakening is controlled, like this year or last year, our “earnings” on interest and exchange rates will not cover inflation,” the analyst adds.
Recall, financial analyst Andriy Shevchyshyn believes that in the second half of 2025 it is better to buy euros.
