The dollar exchange rate in Ukraine remains stable, which complicates the possibilities of earning on dollar savings. But at the same time, a situation has developed in which the profitability of hryvnia deposits will remain at the highest level since 2023 – depending on the term of the deposit, it can reach 17% per annum.
VIDEO OF THE DAY
This assessment was given to “FACTS” by Dmitry Zamotayev, director of the retail business department of Globus Bank . He recalled that currently the highest average rates on hryvnia deposits can be obtained by placing funds for 6−9 months or 1 year. The average profitability of such deposits is 14.5% per annum, and the maximum is 16.5–17% per annum.
“For six months now, hryvnia deposits have remained one of the simplest and most profitable mechanisms for saving money from inflation. And in the conditions of its decline, which, according to forecasts, will not exceed 11.5−12% in annual terms by the end of October, new depositors will be able to receive passive income of up to 3%,” the expert noted.
Dmitry Zamotayev shared key tips with those who plan to place their funds on deposits.
ADVERTISING
1) Before choosing a hryvnia deposit, it is important to compare the decision with your own financial goals. If a person wants to be safe from life's surprises and not depend on long-term placement, deposits for 3-6 or 6-9 months will be the best choice.
2) When choosing a deposit, you should evaluate the expected return. For example:
Deposits for 3−6 months yield an average of about 13−13.5% per annum;
ADVERTISING
For 6−9 months, average rates vary from 13.5% to 14.5%;
For 9−12 months, average rates are 13−13.5%;
Deposits for a year or more — 14−14.5%.
3) It should be noted that 23% of the required taxes should be deducted from the stated rates of return.
ADVERTISING
4) In addition to the base rate, you should pay attention to additional bonuses for new depositors: “welcome” bonuses of 0.5−1%, favorable replenishment conditions or the possibility of early termination of the contract.
5) In order for the income to be “noticeable”, it is recommended to place from 20 to 50 thousand UAH.
6) The declared yield of bank deposits is always given in annual terms, so for shorter terms it is necessary to correctly calculate the income. If a conditionally offered rate of 17% per annum is offered for a 6-month deposit, in reality it will be 8.5%, of which the client will have to pay another 23% tax – which is 1.95%. That is, the declared 17% per annum actually turns into a “net” 6.55%.
Dmitry Zamotayev gave examples of income depending on the amount, term of placement of funds, and average deposit rate:
A deposit of UAH 20,000 for 3 months at 13% per annum (monthly rate 1.08%, cumulative for the term — 3.25%) will bring UAH 650 in income, net income after tax — UAH 500.5.
A deposit of UAH 20,000 for 6 months at 14.5% per annum (monthly rate 1.21%, cumulative — 7.25%) will yield UAH 1,550, net income — UAH 1,116.5.
A deposit of UAH 20,000 for 9 months at 14.5% per annum (monthly rate 1.21%, cumulative — 10.875%) will provide UAH 2,175 in income, net — UAH 1,674.6.
A deposit of UAH 20,000 for 1 year at 14.5% per annum (monthly rate 1.21%, cumulative — 14.5%) will bring UAH 2,700 in income, net income — UAH 2,079.
According to the expert's expectations, if positive economic dynamics are maintained, a stable situation in the foreign exchange market and effective counteraction to the enemy is maintained, along with the security of energy and critical infrastructure facilities, some citizens who usually buy cash currency at the end of the year may switch to hryvnia deposits.
“So far, we assume that up to 30% of hryvnia funds received at the end of the year in the form of bonuses, dividends, and premiums can be directed specifically to hryvnia deposits. This is a fairly large share, because during several years of full-scale war, up to 90% was spent on buying currency to protect funds from depreciation,” the expert emphasized.
The banker also notes that by the end of the year, the profitability of hryvnia deposits will remain more or less stable. At the same time, if the official dollar exchange rate is at the level of 42.2−43 UAH, and on world markets the dollar to euro ratio does not exceed 1.18 (i.e. the euro exchange rate in Ukraine will be within 50−51 UAH), this may stimulate citizens to study deposit offers more carefully.
“A strong hryvnia and relative “exchange rate calm” on the foreign exchange market can stimulate those who consider deposits as a reliable mechanism for preserving the purchasing power of their own savings. Moderate inflation is an additional, but weighty argument for receiving passive income from deposits,” Dmytro Zamotayev concluded.
Previously, “FACTS” reported on the most profitable instruments for financial investments of savings.
