Friday, October 07, 2022

How Much UVA Fixed Terms Pay: Why Banks Don’t Want To Tell You

This is after the condemnation of many customers of banks It was found that several entities had withdrawn from their virtual platforms the possibility of forming a UVA fixed term For which the saver was forced to go to a branch. In essence, he was “hiding” his clients’ UVA prescribed conditions.

As such, financial institutions must continue to allow their clients to establish UVA stipulations: home bankingTelephone banking and mobile app.

Argentine Peso 1000

How Much UVA Fixed Terms Pay: Why Banks Don't Want To Tell You

What are UVA Fixed Conditions?

It is a tool to protect the value introduced during the government Mauricio Macrique Which guarantees that deposits never lose against inflation.

Unlike a traditional fixed term, in which the interest rate to be paid at the end of the period of immobility of money is known in advance, UVA guarantees an interest rate equal to registered inflation during the period of the fixed term period. deposit plus 1%,

In this way the indexation of that deposit will always be above the accumulated inflation thus guaranteeing conservation of purchasing power.

How does this work?

When constituting a UVA fixed term, the amount deposited will be converted into a certain amount of Purchase Price Units (UVA) as of that day’s value. For example, this Friday the UVA is at 142.83 pesos.

Thus, if a UVA fixed term is formed to a value of 1 million pesos, the depositor would have converted that savings into 7,001.33 UVA. At the end of the stipulated period, which cannot be less than 90 days, those UVA will be exchanged for pesos on that day’s value and added 1% annually.

The UVA value increases in accordance with inflation so that preservation of the value of that savings is guaranteed.

Argentine Peso.jpg

How Much UVA Fixed Terms Pay: Why Banks Don't Want To Tell You

Terms and quantity

Unlike traditional fixed terms, which can be set up for a period of 30 days or more, UVA fixed terms have a minimum duration of 90 days. Although they are likely to have prepaid prior to that time, from the 30th onwards, doing so would yield much less fixed income than with a traditional fixed period.

Till yesterday there was no limit on what constitutes UVA’s fixed terms, however, the Center at this point gave in to banks that were hiding equipment from their customers and imposed a limit of 10 million pesos on UVA’s fixed terms.

Moreover, they can only be formed by natural persons and not by legal entities. Banks began hiding the UVA’s fixed terms from their customers because they had no way of converting those funds into inflation-adjusted loans.

So far this year, the stock of pesos deposited in UVA fixed terms has risen by 141% as against the 60% increase experienced by traditional fixed terms in the same period.


How Much UVA Fixed Terms Pay: Why Banks Don't Want To Tell You

Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.

Latest News

Related Stories