Article content
- Factors influencing deposit yields
- Changes in average rates
- Maximum rates
- Foreign currency deposits
- Key changes in the deposit market in 2024
- How did deposit volumes change?
Deposits remain one of the most popular ways for Ukrainians to preserve and grow their savings. However, it is important to understand how profitable deposit programs are and whether bank deposit yields can offset inflation and generate real income. We have gathered key figures, facts, and trends to help assess the dynamics of deposit rates throughout 2024 and draw conclusions about the effectiveness of this instrument for depositors.
Factors influencing deposit yields
In 2024, the key factor determining deposit yields was the National Bank of Ukraine's (NBU) key policy rate. Its adjustments, in turn, depended on macroeconomic conditions and inflation.
At the beginning of 2024, Ukraine’s annual inflation rate was projected to be 8.6%. However, by the end of the year, it had reached 12%. The main reasons for this increase were:
- Abnormal heat, which negatively affected agricultural yields;
- Rising fuel prices and tariffs, which impacted business and household expenses;
- Growth in real wages, which led to increased consumer demand.
Taking into account the taxation of deposit interest, at this level of inflation, the minimum deposit yield required to maintain the purchasing power of funds had to be at least 15% per annum.
In the first half of the year, the NBU gradually reduced its key rate from 15% to 13%, maintaining this level in the second half of the year. However, in response to rising inflation, the regulator was forced to raise the rate to 13.5% in December and by another 1 percentage point in January 2025, reaching 14.5%.
Changes in average rates
The UIRD Index reflects the average deposit rates for individuals in the twenty banks with the largest deposit portfolios, which account for over 90% of all household savings in banks. In 2024, the UIRD index dynamics were as follows:
| Deposit term | UIRD Index | |
| January 1, 2024 | December 31, 2024 | |
| 3 months | 13,68% | 13,06% |
| 6 months | 14,52% | 12,93% |
| 9 months | 14,58% | 13,00% |
| 12 months | 14,32% | 12,98% |
In the largest banks, short-term deposit rates (3 months) decreased by only 0.62 percentage points, while the average decline for other deposit terms was around 1.5 percentage points. As seen, deposits in these banks did not provide real capital growth for depositors, as the average rate remained below the actual inflation level.
Maximum rates
Maximum deposit rates usually differ significantly from the UIRD index, as smaller banks actively competing for household funds traditionally offer more attractive rates. If we consider standard bank offers for all clients, the maximum rates changed as follows:
| Deposit term | Maximum rate | |
| January 1, 2024 | December 31, 2024 | |
| 3 months | 18,75% | 16,50% |
| 6 months | 17,00% | 16,50% |
| 9 months | 17,00% | 16,50% |
| 12 months | 16,75% | 16,25% |
Among the maximum rates, the most significant decrease was recorded for 3-month deposits—down by 2.25 percentage points—while returns on longer-term deposits declined by only 0.5 percentage points. This can be attributed to the fact that in the first half of the year, banks anticipated further reductions in the key rate and were reluctant to lock in high interest rates for extended periods, favoring short-term deposits instead. However, in the fall, when it became evident that inflation was accelerating and the NBU might change its monetary policy, banks began shifting their focus to long-term deposits.
Despite the overall downward trend, maximum rates remained attractive enough to protect funds from inflationary depreciation and generate additional income. For example, if you placed a UAH deposit in Agroprosperis Bank on January 1, 2024, at an annual rate of 16.75% for 12 months, you would have received a net profit of 1.44% after taxes and inflation by the end of the year.
Foreign currency deposits
Deposit rates for foreign currency remained stable throughout the year—both in major banks and across the market. Dollar deposits offered annual rates of 0.5–1.5%, while euro deposits ranged from 0.1–1%.
Key changes in the deposit market in 2024
Analyzing deposit rate trends over the year, several key tendencies can be highlighted:
- Deposit yields decreased by an average of 1 percentage point;
- There was a gradual shift from short-term to long-term deposits;
- Interest rates across different deposit terms nearly equalized;
- 15% per annum became the minimum yield threshold required to preserve the real value of funds, and such offers remained available to depositors.
How did deposit volumes change?
In 2024, Ukrainians continued to actively use bank deposits to preserve and grow their funds. As of January 1, 2024, the total volume of individual deposits in banks amounted to UAH 1.234 trillion, of which 35.5% was held in foreign currency.
Throughout the year, household deposit volumes grew by 9.1%, reaching UAH 1.347 trillion by December 2024. However, when assessed in U.S. dollar equivalent, the total deposit volume remained at the same level. Meanwhile, the structure of savings remained stable, with the share of foreign currency deposits showing little change.
Thus, in 2024, Ukrainians not only maintained their trust in the banking system but also continued to place their funds in deposits, choosing both hryvnia and foreign currency instruments. Despite the decline in rates and rising inflation, deposits in 2024 proved to be an effective tool for protecting savings from depreciation. In 2025, the National Bank will continue its policy of supporting the attractiveness of hryvnia savings, contributing to financial market stability and reinforcing confidence in deposit instruments.
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