How long should you place hryvnias in a deposit?
In April and May, average rates on hryvnia deposits may drop by 0.5%.
This is reported by RBC-Ukraine, citing the words of Dmitry Zamotaev, director of the retail business department at Globus Bank.
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Main points:
- Rate decrease: Over the next two months, banks may reduce the yield on hryvnia deposits by 0.5%;
- Expected figures: Average rates will be in the range of 12.5-14% per annum, with maximum rates reaching up to 15.5%;
- Most profitable terms: Banks will offer the highest returns on deposits with terms of 6-9 months or 1 year.
What will the deposit yield be
Despite the National Bank keeping the discount rate unchanged, banks may start lowering the yield on deposits to the following levels:
- Average rates are expected to be in the range of 12.5-14% per annum by the end of spring.
- Maximum rates may reach 15.5% in May.
Why deposit interest rates may decrease
“Banks plan to revise the yield on deposits to be able to issue more loans,” believes a representative of Globus Bank.
According to Dmitry Zamotaev, if inflation remains low and the hryvnia stable, depositors will still be able to earn and preserve their savings.
How long should you open a hryvnia deposit
In the second quarter of the year, the interlocutor notes, banks will offer the best conditions for such deposits:
- from 6 to 9 months;
- for 1 year.
Recall that on March 19, the National Bank decided to keep the discount rate at 15% due to rising inflation levels and inflation expectations. The increase in prices is mainly driven by the rising cost of oil and gas on the global market amid military actions in the Middle East.
As a result of the escalation of the war against Iran, Sergey Kuyun, director of the consulting company “A-95,” predicts that the price of diesel fuel at gas stations may rise to 90 hryvnias per liter next week.
On March 19, diesel fuel averaged 75.99-82.99 hryvnias per liter, while gasoline A-95 (standard) was priced at 68.99-72.99 hryvnias.
