What is a deposit and how does it work?
A deposit is a reliable and convenient way to save your own assets and get a stable income. In this case, money, precious metals or securities are considered as assets. Funds for a deposit in hryvnia interest can be obtained immediately after the conclusion of the relevant agreement. According to its terms, the credit union accepts for storage and undertakes to return the funds received. Additionally, he pays interest for the use of the provided funds. The interest rate begins to accrue from the moment funds are deposited into the account. Deposits, unless it is agreed separately, cannot be withdrawn before the expiration of the agreed period. Early termination of the contract may lead to a loss of interest, which is unprofitable for customers.
Interest rates on deposits in Ukraine
Hryvnia deposit remains one of the most popular financial instruments that many financial institutions offer to their clients. This allows you to find exactly the financial institution, the conditions for opening a deposit in which will be the most profitable. It is enough to get acquainted with the proposed interest rates, which can vary significantly depending on the term of the deposit, as well as the currency in which the account is opened. The yield largely depends on the interest rate. This means that it can be increased if you open a deposit in hryvnia for 3 months with the possibility of replenishing it. At the same time, practice shows that the most favorable conditions for opening deposits are set for those offers that do not provide for the possibility of subsequent replenishment.
When opening a deposit, pay attention not to its currency. Most often, banks offer to open a deposit in the following currencies:
- in hryvnia;
- in dollars;
- in euros.
Funds in hryvnia on deposit remain the most profitable solution. The reason is the high interest rates that institutions set to attract new customers. In dollar or euro equivalents, the interest rate is low, but inflation risks will be minimal.
It is recommended to open a hryvnia deposit only if you are confident in the reliability of a financial institution. To do this, you should study the sustainability rating, information about which is constantly updated. When drawing up an agreement with a financial institution, it is necessary to clarify whether the institution has the right to change the interest rate during the period of cooperation. Many banks have switched to the practice of adjusting interest rates in accordance with current market conditions. In this case, the interest rate may either increase or noticeably sink, so this clause of the contract is not suitable for everyone.
The provision of the agreement regarding the refund of funds from the deposit also requires special attention. Usually, such a procedure is carried out after the deposit expires. At the same time, funds in hryvnia can be deposited under a variety of conditions. The Bank may return funds unilaterally or leave them on the client’s account. In the latter case, interest accrual ceases after the deposit expires. An alternative option is to extend the deposit immediately after its expiration with a minimum interest rate. Such a deposit in hryvnia can be withdrawn at any time, and the interest rate on it will be set in a symbolic amount.
If you have long wanted to start earning on your own savings, then we are always ready to help you with this. Our consultants have many years of experience, so they will help each client find the most attractive conditions for themselves. A profitable deposit in UAH will provide you with additional income, for which you do not need to make additional efforts.