Updated on 19.06.2024
Deposits of 2024 in Ukraine are one of the most affordable and safest opportunities to protect and multiply savings. Among all the options where to invest money during the war, deposits are the most popular. In this article, we will consider their advantages and disadvantages and decide whether it is worth putting money on the 2024 deposit.
Types of passive income
If you are wondering where to invest your money during the war, there are a number of passive income opportunities for your savings:
- Deposits in banks
- Bonds
- Gold
- Shares of foreign companies
- Real estate
- Cryptocurrency
If we evaluate each of these options according to the criteria of riskiness, minimum amount, yield and availability, then the best place to keep money during the war these are term deposits in banks. Next, we will take a closer look at why deposits are the absolute favorite compared to other investment instruments.
Advantages of deposits
Deposit guarantee
All Ukrainian banks are members of the Individual Deposit Guarantee Fund. During martial law, the full amount of the deposit and accrued interest is guaranteed, and even in the event bankruptcy of the financial institution, the deposit refund mechanism is well-established and takes a minimum of time. Therefore, if you decide where it is better to keep money during the war, then in the case of a bank deposit, you can be absolutely sure that you will get back not only the invested funds, but also the income received from them.
Accessibility and simplicity of design
In a matter of minutes, you can find out reliable information about any bank on the NBU website, and quickly view and compare interest rates on deposits in different financial institutions on bank websites. A deposit can be placed in any branch of any bank in a maximum of an hour, and for customers - in a few clicks in online banking, without leaving home. For this, it is not necessary to have additional knowledge, engage a broker or open an account in a foreign bank.
Stable passive income
Deposits of 2024 offer a sufficiently high yield in UAH and can bring you 15% p. a.. At the same time, it is possible to get such a rate for both short-term and long-term deposits. An additional advantage is that the amount of income and the date of its payment are clearly defined and do not depend on market fluctuations or any other factors, as, for example, in the case of buying shares or gold.
Disadvantages of deposits
Restrictions on access to funds. The vast majority of deposits do not provide for the possibility of early termination, so regardless of the situation, you have to wait until the end of the term of the deposit to get your funds back.
Income taxation. 18% personal income tax and 1.5% military levy must be paid from the amount of accrued interest, as well as from other types of income, which reduces the actual profit from the deposit.
Risk of high inflation. Today, deposit rates significantly exceed the level of inflation and, even after deducting taxes, allow you to multiply the deposited funds. However, during the term of the deposit, a significant increase in inflation is possible, despite the fact that the rate under the current contract will remain fixed.
In view of the listed advantages and disadvantages, we can conclude that it is better for you to put money on deposit if you are not ready to risk everything for high profits, but you want to receive a small, but fixed and guaranteed income, without additional knowledge and effort on your part .
Why it is profitable to put money on a deposit in 2024
Ukrainian banks have been working in the conditions of a full-scale war for almost a year and a half and at the same time they provide financial services in a full, stable and uninterrupted manner. This is a strong proof of the stability and reliability of the banking system, which, in turn, increases the trust of the population in banks. Confirmation of the level of trust in the banking system, even during martial law, is more than a trillion hryvnias that Ukrainians keep in bank accounts, and this amount is steadily growing.
In addition to reliability, transparency and comprehensibility, another advantage of bank deposits is a high level of guaranteed yield. Although in the last year we have observed a slight gradual decrease in deposit rates, which will continue in the future, in any case, the return on deposits will significantly exceed the inflation rate, so hryvnia deposits will not lose their attractiveness.
If we talk about interest on foreign currency deposits, they have been at a minimum level for a long time and there are no prerequisites for their growth. However, this in no way reduces the popularity of such deposits, because in addition to deposit rates, the final yield is also affected by the devaluation of the national currency. As you can see, the dollar has appreciated by almost 10% over the past six months.
Ukrainians' commitment to currency deposits is confirmed by statistics. Despite the low yield of deposits in foreign currency, a third of all funds of private individuals were placed in foreign currency accounts, and this share of currency in the savings of the population has remained unchanged over the last year.
So, if you want to protect your savings from devaluation, you should place a 2024 hryvnia deposit, and if you want to place funds profitably, choose deposits with Agroprosperis Bank.
