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.
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 $1,000,000 per month, he should deposit $33,000,000.
Current bank-by-bank interest rates as of August 28
These are the interest that banks pay for fixed-term deposits (annual nominal rate):
- National Bank: 37%
- Provincial Bank: 35%
- City Bank: 34%
- Santander Bank: 32%
- Galicia Bank: 35%
- BBVA: 34.25%
- Macro Bank: 37%
- HSBC Bank: 33%
- Credicoop Bank: 35%
- ICBC Bank: 33.55%
Source: Ambito
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