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.
These are the interests that banks pay for the fixed term (annual nominal rate):
Depositphotos
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.
How much do I earn?
For example, a fixed term pays $30,410.96 in monthly interest if $1,000,000 pesos are invested as the initial investment.
The fixed term is like this: $1,000,000 of capital is invested. After 30 days the account will have $1,030,410.96 of capital and interest.
The interest paid was 30,410.96 pesos in 30 days
Another example, for every $100,000 placed in a fixed-term deposit, you get about $3,000 in a month. That is, if you deposit $500,000, the interest earned would be $15,205.48 at 30 days, which is when the placement expires. But if it is 60 days, the interest earned would be $31,232.88.
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Depositphotos
Current bank-by-bank interest rates as of September 10
These are the interest that banks pay for fixed-term deposits (annual nominal rate):
- Bank of the Argentine Nation – 37%
- Santander Bank Argentina S.A. – 32%
- Bank of Galicia and Buenos Aires SAU – 37%
- Bank of the Province of Buenos Aires – 35%
- BBVA Argentina S.A. Bank – 34.25%
- Macro Bank SA – 37%
- HSBC Bank Argentina S.A. – 33%
- Credicoop Cooperative Limited Bank – 35% / 35%
- Industrial and Commercial Bank of China (Argentina) SAU – 33.55%
- Bank of the City of Buenos Aires – 34%
Source: Ambito
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