Although traditional fixed-term deposits have seen a decline in their attractiveness compared to last year, the recent rise in interest rates has made them re-emerge in the investor spectrum.
Currently, the return is lower than inflation, providing a profit of about 3% per month, against a 4% increase in prices.
Mariano Fuchila
The drop in inflation has made the fixed-term rate a more attractive option for investing pesos at low risk. After several months in which the return was not convenient, savers are now looking at them as an option again.
In August, interest rates for fixed terms increased and Banks now offer more competitive returns for deposits in pesos for 30 days.
Thus, in recent times, the yield offered to savers for their deposits is very close to 35% annual nominal rate, 5 percentage points below the Central Bank’s (BCRA) monetary policy index, which is 40% today.
The question that often arises is how much a fixed-term deposit yields. Currently, the return is lower than inflation, providing a profit of about 3% per month, against a 4% increase in prices.
For example, if a saver wants to have a return of $100,000 per month, he should deposit $3,300,000.
Current interest rates by bank
These are the interest that banks pay for fixed-term deposits (annual nominal rate):
- BBVA Bank: 34.25%
- City Bank: 34%
- Provincial Bank: 35%
- Galicia Bank: 35%
- National Bank: 36%
- HSBC Bank: 33%
- Patagonia Bank: 29%
- Santander Bank: 33%
- Mortgage Bank: 35%
- Columbia Bank: 38%
How much do I earn if I invest $500,000 in a fixed term?
With this data as a reference, the The profit that can be obtained with a fixed-term deposit of $500,000 generally exceeds $15,000 in a month.
savings fixed term finances investments interest rates
Depositphotos
Simulation for a deposit of $2,400,000
If you decide invest $2,400,000 in a fixed-term deposit with an annual rate of 36%such as the one offered by Banco Nación, The profit in 30 days would be $71,013.70It is essential to keep in mind that the amount invested will not be available during the fixed-term period, so it is key to consider both the capital to be immobilized and the rate offered by the bank when making an investment decision.
Source: Ambito
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