For conservative savers: how much traditional fixed terms yield with current rates

This means that if tomorrow a person made a fixed term for 30 days of $100,000, at the end of the term he will receive $103,833, that is, the $100,000 that he had deposited at first plus an interest of $3,833.

However, yesIf you decided at the end of that term to make a new fixed term for 30 days with the initial money plus the $3,833 earned in interest, you would obtain $107,813 at the end of the term, that is, the $103,833 deposited at the beginning of the month plus an interest of $ 3,979.

The concerns of Argentines come at a time when inflation shows worrying data for analysts, because in March it rose to 6.7% and in April it could be around 4.5%. With these high levels, and forecasts by economists for a price increase of around 60% for all of 2022, the yields offered today by traditional fixed terms in pesos, for now, do not look very seductive.

The growth rate of UVA deposits, in times of runaway inflation, is several heads ahead of the growth of traditional time deposits. While in the 30 days prior to April 6, the latest official data, the UVA stock grew 20%, that of traditional fixed terms advanced 6.91%. So far this year, UVA grew 42% and traditional 21%. While in year-on-year terms, traditional fixed terms advanced 56%.

So far this year, UVA grew 42% and traditional 21%. A year ago, UVA PF represented 3.41% of the total.

Although CER-adjusted instruments represent a better option, in Ambit We give a couple of tips for those who still want to bet on traditional fixed terms:

• Before choosing a bank to constitute a fixed term, you must check the fixed term rate by Home Banking or by investment banking, electronic means usually offer better interest rates.
• In general, the longer the term, the higher the rate that the bank is willing to pay. If it is known that the money will not be needed for more than 30 days, consult the interest rates for longer terms, such as 60, 90, 180 and 360 days.
• In general, the higher the amount deposited, the higher the rate the bank is willing to pay. The minimum amount for a fixed term is usually $1,000.
• Fixed-term operations can be made in pesos or dollars, and the rate of one and the other are different.
• Those fixed terms that have a specific modality (e.g. pre-cancellable, adjustable with CER clause, UVas, etc.) or those that have been made electronically (by ATM, Home Banking, telephone, etc.) are not compensable, since it is necessary possess the physical document to present it to another entity.

Source: Ambito