How much do fixed terms pay from this Friday after interest rate hike

The Central Bank of the Republic of Argentina (BCRA), established on Thursday An increase in the monetary policy interest rate to more than 8 percent, setting it at 69.5% per annum, which directly affects the constitution of fixed terms.

Thus, in case of deposits up to 10 million pesos made by individuals, the new Guaranteed Annual Nominal Rate Floor (TNA) will be 69.5% – earlier it was 61% – for deposits in 30 days, Which represents a monthly return of 5.79% and an effective annual return of 96.5%.

For example, a saver who deposits $100,000 for 30 days starting this Friday, In fixed term modalities regulated by BCRA, At the end of the term, you will receive $105,791, that is, $5,791 of interest.

If after the first 30 days, the saver decides to renew the fixed term with capital and interest generated in that period, then after 60 days, he will receive $111,917, i.e., $105,050 deposited at the beginning of the month plus an interest . of $6,126.

in the same way, If during subsequent months and up to 12 months, the saver renews the fixed term with interest accrued month after month, with initial capital plus accrued interest, in one year he will have $196,525, i.e. $100,000 more than initially deposited One interest of $96,525.

For private sector balance fixed deposits, the guaranteed minimum rate will be 61%, which represents an effective annual rate of 81.3%.

Fixed Terms UVA

This is another way to protect yourself from losing the purchasing power of money against inflation. Traditional UVA fixed terms are adjusted based on officially reported inflation and provide additional returns. At the end of the term, which is at least 90 days, savers recover capital with interest based on index CPI, plus an additional rate, which varies by bank, but is usually between 0.1% and 0. takes place in between. 2% per annum.

The drawback of this method is that it should be done for a minimum of 90 days and a maximum of one year. In any case, there is an option for pre-cancellable UVA fixed terms to be withdrawn after 30 days. But in that case a lower rate is obtained as compared to the traditional fixed term.

Experts confirm that given inflation in July and market expectations for August and September, with a 3-month horizon, a UVA fixed term can yield a direct 20.4%, compared to a traditional fixed term of 2 per cent. Will give less marks.

At present it is mandatory for all banks to offer fixed terms “UVA + 1%” in home banking by all means, either at branches with physical presence or through electronic platforms.


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