Whereas in developed Western countries, citizens are accustomed to keeping their savings in stocks and securities, then our compatriots, like many years ago, prefer ordinary deposits in banks. There is nothing surprising here, because for any activity in the financial market you need to have at least elementary concepts about investments and investments. Moreover, in a crisis, you can quite noticeably burn out. None of the organizations will be able to guarantee that after a certain period the holder of the shares will receive a guaranteed return on hand.
It can only be assumed what the result will be based on statistics from previous years of activity. But this is only a forecast, no more. The market can change significantly, and a person will lose not only interest, but also his money. If, moreover, we take into account the risks of devaluation of the national currency, inflationary expectations, it is much more reasonable to transfer our funds to the bank and put on a regular deposit .
Short overview of the deposit market
Our market is different in that more attractive conditions are offered not by banks, but by various financial organizations, including credit unions and corporations. At that time, when banks could deposit at 13.75%, some institutions offered sky-high 20, and even 25 percent. Our people are financially inconsiderate. They perceive facts such as evidence of the company’s sustainability, and are in a hurry to take their money to where they earn more.
Such misconception often leads to unforeseen consequences. After all, a high percentage is a way to correct a shaky situation by attracting money from investors. Banks usually offer rates that may differ by a percentage or two, but not by 10 or 15%.
Banks, as a rule, strictly adhere to the norms of legislation and transfer funds to funds. Of these, in the event of bankruptcy, the depositor receives state-guaranteed amounts. However, no one can guarantee that a credit institution is not a fraudulent structure, so you should not rush to conclusions. Such companies appear only in order to attract as much money as possible, and then disappear from sight.
On the other hand, keeping money at home is risky too. It all depends, of course, on the amount. If it is quite impressive, and its owner is sure that he will not feel the need for money for many years, it is wiser to invest it in real estate. Despite situational fluctuations, in the long run it will certainly demonstrate growth, and the funds will be safely saved and even increased.
Precisely the same is with precious metals. But a completely different situation arises if an ordinary person puts aside some amounts of personal income and wants to use them rationally to get additional profit. He has only one option left – to open a deposit in the bank .
If we analyze all the proposals, then this picture develops:
- Bank Alliance. The minimum deposit is 15 thousand hryvnias. The promotional program involves 16-18% per annum, which can be obtained on a plastic card.
- Misto Bank. If you put money for 18 months, the depositor will be able to count on 15-16.5 percent. They can be received both monthly and after termination of the contract upon expiration.
- Universal Bank. A fixed-term contract for a period of 3 to 18 months will allow holders to receive amounts of 50 thousand hryvnias from 14 to 18 percent. However, it will be impossible to terminate it ahead of schedule under any circumstances, which is worth considering.
As for deposits in foreign currency, rates decreased slightly (by about 0.07%). Typically, for a year, banks accept deposits at 3%, while for six months – at 2%. If we take into account the proposals for the placement of dollar deposits for 12 months, the proposals are as follows:
- Megabank – 4.77%;
- Ukrgas Bank – 4.66%;
- Procredit – 4.5%;
- Prominvest – 4.25%.
As expected, the very lowest interest rates are offered by very reliable banks with foreign capital:
- Kredobank – 1.69%;
- Credit Agricole – 0.01%;
- Raiffeisen Bank – 0.05%.
As for deposits in European currency, the market offers are 2-2.5% per year and up to 1.75% for six months.
Putting your savings in euros for a year is most profitable in the following banks:
- Ukrgasbank – 4.83%;
- Globe – 4%;
- Megabank – 3.77%;
- ProCredit – 3.5%.
The lowest percentage will be offered by Pravex Bank and OTP. After a year, you can get only 0.01% for a deposit in euros.
Where is the most reliable place to deposit
Having information about the situation in the deposit market, anyone can decide where to put their savings. But many experience understandable doubts and worry about the safety of their money. They can be given several recommendations. Moreover, each investor should be aware that none of the tips can serve as a guide to action. Any decision is made at your own peril and risk. So:
- when placing money for a short time and in a modest amount, it makes sense to take advantage of the offer of the maximum rate and take the money there;
- when opening a deposit for a long period, it is better to trust those banks that have been operating on the market for many years and have earned good reviews;
- if the amount exceeds the limits of the deposit guarantee fund, it is better to take the savings to state banks.
After analyzing the information on interest rates and comparing the proposals of private and state banks, we can conclude that there are currently no laws. Often, it is government agencies that are ready to offer more interesting conditions to investors. There is no need to talk about banks with foreign capital. They, as always, do not welcome work with private individuals and offer very low deposit rates.
Oschadbank will offer 12.5% per annum in hryvnia, 3.25% in US dollars and 2.25% in euros. If you trust the state-owned Privatbank, the depositor can count on 14.5% when concluding an agreement for six months in hryvnias, 3% per year in US dollars and 1.25% for six to twelve months in euros. A big advantage is the ability to replenish deposits. Each month, an amount not exceeding the amount in which the deposit was opened can be deposited.
Such actions can be carried out at the bank’s terminals or through Privat 24 around the clock, on any day of the week, and even on public holidays. Interest is paid regularly. Some banks do not make transfers on weekends, which cannot be said about Privatbank. Money comes to the card every morning in the morning, while the depositor can replenish their deposit with it. To do this, just go to the Privat website or use a special application for a smartphone running on Android or iOS.
Ukreximbank offers a range of deposit products in which each has its own conditions. On average, the rate will be 13.47% in hryvnias, not more than 3.05% in US dollars and 2.63% in euros.
Summing up, we can say that Privatbank is the most attractive in terms of deposit placement. Its advantages are maximum flexibility and really trouble-free operation: 24 hours a day and 365 days a year.
If you study all the proposals of banking organizations, both public and private, an unequivocal opinion is quite difficult to form. Attractive conditions are sometimes found, but after what has happened in recent years, this “bank fall” is not worth rushing to conclusions. At the same time, institutions operating on the domestic market for a dozen or more years offer more modest conditions.
It should be borne in mind that the profitability rating of deposits differs significantly from the reliability rating. According to the results of the second quarter of 2020, it looks like this:
- Raiffeisen Bank.
- Ukrsibbank.
- Credit Agricole Bank.
- OTP.
- Kredobank.
If we talk about which bank should be allocated a substantial amount, then it is worth giving preference to those organizations with a higher rating. Any person who has significant funds and impressive incomes is not so interested in reward as in the ability to securely store money and not risk losing it at one time.