The update implemented this week raised the yield of fixed terms in pesos for retail deposits. The rate of these became 75% annual nominal. This means that if a 30-day deposit is generated to be renewed every month for a year, the annual effective rate will reach 107%, since the monthly rate is above 6.2%. This means that if the placement is $100,000, the monthly return is $6,200. If it is completely renewed, the percentage is calculated on that new total.
If one takes into consideration the inflation projections that the market has, based on the Survey of Market Expectations of the Central Bank, inflation is going to slow down in the rest of the year, for which the fixed-term placement would beat inflation.
The increase in the interest rate also affects the credit card purchases, especially in the case of financing payments. The installments become more expensive and, in the case of paying the minimum, the interests are high. The annual nominal rate of the banks will become 77% for expenses up to $200,000, which makes the effective annual rate is 110.9%. If bank fees are added, the cost of financing amounts to 132%.
The nominal annual rate for the program is 85% of the rate of fixed termswhich is a total 63.7%.
Source: Ambito
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