The increase in monetary policy interest rates set this Thursday by the Central Bank (BCRA) -from 69.5% to 75%- It will take effect as of this Friday and will have an immediate impact on fixed-term deposits in pesos, as a way to prevent the rise in prices from affecting savers.
In the case of deposits of up to 10 million pesos made by human persons, the new guaranteed annual nominal rate floor (TNA) will be 75% -previously it was 69.5%- for 30-day deposits, which represents a monthly return of 6.25% and 107% per year.
For him rest of private sector time deposits the guaranteed minimum rate will be 61%, which represents a annual effective rate of 91%.
This means that If tomorrow a person made a fixed term for 30 days of $100,000, at the end of the term he will receive $106,250, that is, the $100,000 that he had deposited at the beginning plus an interest of $6,250.
However, if you decide at the end of that month make a new fixed term for 30 days cWith the initial money plus the $6,250 earned in interest, you would obtain $112,890 at the end of the term, that is, the $106,250 deposited at the beginning of the month plus an interest of $ 6.640.
In case if there is no change in the interest rate during the next year, if before each expiration the person returned to make a new fixed term for 30 days with the initial capital and the interests earned, in 12 months he would have $207,000
That is, the $100,000 initially deposited plus interest of $107,000.
What about UVA fixed terms
Banks also offer pre-cancelable “UVA + 1%” fixed terms, as an investment option at a positive real rate for savers, since they offer a minimum rate of 1% per year on the interest rate equivalent to the Price Index to the Consumer reported by the Indec plus the annual rate of 1.
This mechanism makes it possible to maintain the purchasing power of savings and beat inflation by one point, if the contractual term of 90 days is met.
The particularity of this product is that it has the option of pre-cancellation after 30 days, although with an interest rate equivalent to 85% of the TNA given by traditional fixed terms, which would currently be 63.75 %.
Currently it is mandatory for all banks to offer fixed terms «UVA + 1%» in home banking through all means, either in branches with a physical presence or through electronic platforms.
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