Article content
- Which deposit is profitable
- Rates on deposits in UAH and foreign currency
- Devaluation risk
- The process of placing a deposit in UAH and foreign currency
- Purpose of placing a deposit
In the conditions of martial law and macroeconomic instability, along with the question of their own security, Ukrainians face another, no less important question - the security of their funds. How not to lose savings in these turbulent conditions? How to protect and multiply them? In which currency is it better to save money? In this article, we will consider the advantages and disadvantages of saving funds in different currencies, compare the benefits and risks of each type of savings and determine in which cases it is better to open a deposit in which currency.
We will state right away that in this material we will not consider the option of storing money at home “under the mattress“. Cash can be stolen, damaged or completely destroyed by fire, flood, war and natural disasters. Keeping funds in the bank is much safer, and placing funds on deposit also helps to compensate for inflation risks and receive additional income. The full-scale invasion made it clear that, under any circumstances, money in the bank is just as available as money in the pocket.
Which deposit is profitable
Deposits in UAH and foreign currency can be compared with each other according to the following main parameters:
- Yield - the level of interest rates on UAH deposits and foreign currency deposits.
- Devaluation risk – a possible decrease in the exchange rate of the national currency to the foreign one.
- Convenience of the process – ease of opening a deposit and withdrawing funds.
In addition to the mentioned factors, it is important to determine the purpose of placing a deposit, as target priorities also influence the choice of the optimal deposit currency. Below, we will examine each of these parameters in more detail.
Rates on deposits in UAH and foreign currency
Interest rates on hryvnia deposits significantly exceed the rates on deposits in U.S. dollars or euros. This is explained, on the one hand, by the lack of demand for foreign currency loans from the population and businesses, and on the other hand, by the systemic measures of the National Bank aimed at reducing inflation of the hryvnia. In particular, it has introduced increased reserve requirements for balances in foreign currency and maintains high rates on NBU deposit certificates, which makes the hryvnia more attractive for banks. In addition, on March 7, 2025, the NBU raised the key policy rate to 15.5% and has maintained it at this level for 8 months. This decision helps control inflation, maintain exchange rate stability, and support the interest of Ukrainians in savings in the national currency.
As of 21 November 2025, the average interest rate on 12-month retail deposits among the twenty largest banks by deposit volume amounts to 13.76% p.a. in hryvnia, whereas in U.S. dollars it is only 1.19%.
The current yield of hryvnia deposits exceeds inflation. Based on the results of 2025, inflation is expected at 9.2%, and in 2026 it is projected to decline to 6.6%.
Therefore, if you place funds today for 1 year at the average rate of 13.77% p.a., which equals 10.59% after taxation, then in 2026 you will not only protect your savings from devaluation but also earn an additional return of about 4% p.a.
If you open a hryvnia deposit at Agroprosperis Bank at 16.25% per annum, or 12.51% per annum after taxation, you will receive almost 6% real profit.
For comparison, a deposit in U.S. dollars will yield just over 1% p. a., not accounting for the depreciation of the dollar. These figures provide a clear answer to the question of which deposit is more profitable.
Devaluation risk
Historically, the hryvnia has gradually lost its value compared to the U.S. dollar. Over the past 15 years, the exchange rate of our national currency has changed from 8 UAH/USD to 42.15 UAH/USD. This is why Ukrainians have traditionally placed greater trust in foreign currencies. However, if we track the changes in the cash exchange rate of the hryvnia against the U.S. dollar during 2025, the situation has changed. At the beginning of the year, the exchange rate was almost equal to the level observed at the end of the year — the same applies to the euro.
As of 21 November 2024, according to National Bank of Ukraine data, the weighted average cash selling rate of the U.S. dollar was 41.2533 UAH/USD, and with 100,000 UAH you could purchase 2,424.05 USD. By placing these funds on a deposit, you would receive 2,452.05 USD including the paid interest. Selling these dollars a year later, on 21 November 2025, at the rate of 42.0 UAH, you would obtain 102,985.94 UAH. Therefore, with 100,000 UAH you would earn 2,985.94 UAH.
And if on 21 November 2024 you had decided to place these 100,000 UAH in a hryvnia deposit at Agroprosperis Bank for 12 months at 15% per annum? In that case, you would receive 11,550 UAH of net income after taxes, which is 8,564.06 UAH more than if you had kept your savings in foreign currency. And with 111,550 UAH, on 21 November 2025 you could purchase 2,630.9 USD at the average cash exchange rate of 42.4 UAH/USD, which is 178.85 USD more than if you had bought dollars a year earlier.
The process of placing a deposit in UAH and foreign currency
Let's consider the most typical situation when you receive income and plan to spend money in UAH. If you keep money in USD, then in such a situation, first you need to buy a USD at the selling rate, and then you need to surrender a USD at the buying rate. The difference between the selling and buying rates is approximately UAH 0.5 per unit of currency, therefore, assuming a constant exchange rate, the deposit is 3,000 USD only on exchange. you will immediately lose UAH 1,500.
Having chosen UAH deposits, you do not need to follow the exchange rate and visit a branch or online banking operations to buy this currency. Understanding the additional hassle, many Ukrainians prefer UAH deposits. A deposit in UAH allows you to withdraw savings in the form in which you deposited them in the account, without the need to worry about exchange rates or exchange.
It is important to remember that in the event of a bank being declared insolvent, the Deposit Guarantee Fund reimburses funds placed in foreign currency at the official exchange rate of the National Bank of Ukraine. However, this rate is usually lower than the market rate, which may result in additional losses for the depositor.
In crisis situations, the national currency has a certain advantage — the likelihood of restrictions on cash withdrawals and transactions in the national currency is significantly lower than for foreign currencies. This should also be taken into account when deciding in which currency to open a deposit.
Purpose of placing a deposit
To make the right decision on which currency to use for a deposit, it is important to understand the purpose of your savings. The main goals that deposits typically serve can be outlined as follows:
- Earning additional income. If your goal is to generate additional monthly income for current expenses, the most beneficial option would be a deposit in hryvnia. This currency provides the highest yield and is convenient for everyday transactions.
- Short-term savings. If you are saving for a major purchase, such as a new car, an apartment in a newly built property, university tuition, travel, etc., it is advisable to save in the currency in which you will make the purchase. However, if you earn your income in hryvnia but plan to make the purchase in U.S. dollars, it would be reasonable to divide your funds and save in both currencies.
- Long-term savings. For long-term savings, such as securing a comfortable retirement or achieving early retirement, it is advisable to choose stable currencies like U.S. dollars or euros, which maintain their purchasing power over decades.
It is important to remember that exchange rates can fluctuate in the short term, both positively and negatively, and it is impossible to predict the most advantageous option in advance. Therefore, the key criterion for selecting a deposit currency should be your financial goal.
To further protect your savings from inflationary and devaluation risks, a prudent approach would be to diversify your deposit portfolio by keeping part of your funds in hryvnia and part in foreign currencies such as dollars or euros. For instance, you might allocate two-thirds of your funds in hryvnia and one-third in foreign currencies. However, the optimal proportion should be determined individually based on your specific needs and plans.
