Many Argentines choose the traditional fixed term when thinking about how to invest your pesos because it is a low-risk savings instrument that guarantees a rate regulated by the Central Bank of the Argentine Republic (BCRA)but in the current inflationary context many are hesitant about whether to bet or not because they do not know exactly what profit it offers.
At this time, traditional fixed terms pay an Annual Nominal Rate (TNA), a return set by the BCRA, of 133% per year, with an annual effective rate (TEA) of 253%, which was last updated before the elections. generals, on October 12.
That is the regulated rate that all banks pay and guarantees a monthly return of 11%. With this data on the table, how much can you earn with a fixed-term deposit of $200,000 with a 30-day term today?
Fixed term: how much $100,000 per month yields
If $100,000 is deposited within 30 days, With a rate of 11% for the month, at the end of that period the depositor’s profit will have been $10,931.
Does it beat inflation? Not compared to September, which was 12.7%, but 11% is an interesting return, especially considering that few investment instruments today guarantee that level of profit.
Likewise, we will have to see what the inflation data is for October to evaluate how the investor fared this month. It is likely that this figure is somewhat below that of September.
It is very important to know that, In the event that there is a new rate increase, for example, when the inflation data for October is known in the middle of this month, as has been happening recently, the initial rate is maintained.so it is recommended in this type of investment to do it initially for the shortest period allowed, which is 30 days, and renew it whenever necessary.
The TEA: a reference element
On the other hand, we must analyze how the saver is doing with this instrument against the annual inflation expected for this year. If you plan to continue renewing the initial capital plus the return month by month, The TEA must be taken as a reference, which is 253%, As it was told. In that case, at the end of a year, as long as there have been no changes in rates, something more than two and a half times the starting capital ($706,000 exactly) will be taken into account.
It is unlikely that there will be no changes in that period, so it is a number that should be taken as a reference only. In this case, taking into account that the Survey of Market Expectations (REM) projects an annual inflation for 2023 of 180%, the fixed term beats it by far. However, October 2023/October 2024 inflation may be higher, thus reaffirming the role of the TEA as a reference at this time only.
Other initial investment amounts:
- $500,000 in 30 days: if they are reversed $500,000 After 30 days, the profit is $55,000.
- $1,000,000 in 30 days: In the same sense, if you reverse $1 million in a fixed period, with the 30 day profit It is $110,000.
How to make a fixed term?
Most banks offer several channel alternatives to the saver to make a fixed term. One of them and the most used today is Home Banking. And it is very easy to use.
The first thing to do is enter home banking with username and password, which must have been generated previously. Next, you must look for the label, select the “Investments” option from the menu, enter “Fixed term” and click on the “Establish” button.
Next, you must specify how many pesos you want to invest, in this case, $200,000, the amount of time for which the investment will be made and the type of fixed term chosen. It is necessary to enter the account number from which the amount will be debited. And confirm. Don’t forget to select the manually renew option and do not choose automatic renewal.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
