With a extremely high inflation, Many Argentine savers are looking for a way to protect their savings. One of the most popular forms, especially for being a savings instrument conservative, is the constitution of Fixed deadlines.
In the case of this instrument, in line with what was agreed with the International Monetary Fund (IMF), the BCRA The interest rate has been raised several times for the fixed term deposits so that these “overcome” the annual inflation of this 2022. Faced with the last rise in the interest rate The question arises about which bank pays a greater amount of interest.
Which bank pays a higher interest rate?
A lots of savers, when setting up a fixed term, seek to do so in the financial institutions that provide the higher interest rate possible.
In the past, each bank offered a differential interest rate for deposits to fixed term and there were even “differential rates” for being clients of the bank, contracting certain products or services of the financial entity in question, etc…
However, at the moment, all banks offer the same interest rate. The main reason is that the BCRA established a policy of minimum interest rate for certain operations such as fixed term, so none financial entity or bank that operates with these instruments can offer a interest rate below this.
The Central Bank has established a minimum interest rate policy for time deposits
With a effective annual rate close to 100% per year, banks and financial entities considers this minimum rate “excessive”.
This is because this rate is the main component of your active rate, that is, the “main ingredient” of the interest rate that they will charge their clients for carrying out operations such as requesting a credit or refinancing the credit card.
In other words, this rate close to 100% must be added to some components, such as the expenses of the financial entity, the profit of the entity, among other factors. This leads us to the conclusion that the rate they will charge for the aforementioned operations will be far greater than 100%.
Although banks can offer rates above the one set by the BCRA, they simply limit themselves to complying with said regulations
This fact means that fewer and fewer people and companies decide to borrow, so banks begin to have a deposit surplus Y Fixed deadlines and few credits.
This is why, despite the fact that the rate that the BCRA requires banks to offer has a minimum, but not a maximum (so banks can offer rates above this percentage), banks are limited only to offering that minimum and mandatory fee.
How much does Banco Nación pay a 30-day fixed term?
Currently, the National Bank offers a interest rate 69.5% nominal annual rate and an effective annual rate of 96.58%, respectively.
if we decide invest $10,000 at 30 days with this new rate would generate approximately $571.23 in interest. In the hypothetical case that we reinvest that money every 30 days for a year, at the end of the 12 months we would obtain $19,658, of which $10,000 will correspond to the capital invested and $9,658 of interest.
However, this interest would be “nominal” because, in a inflationary economy like that of Argentina, the inflation of said period must be discounted to know how much gain “real” we got.
Assuming that to inflation is 70% per year and the fixed term that we constituted we were withdrawing the earned interest, we will have obtained a loss of 0.5% per year.
The interest rate offered by Banco Nación is 69.5% annual nominal
If, on the other hand, we renew the interest periodically, that is, every 30 days we renew both the principal and the interests, we would obtain the rate of 96.58% mentioned previously. In this case, taking as data the inflation of 70%, we would obtain a gain of 26.58% respectively.
How much is the interest of a fixed term in Banco Santander?
As we mentioned previously, all banks and financial institutions offer the same interest for fixed-term deposits, that is, the interest rate for a deposit to fixed term in the Santander bank it is 69.5% annual nominal and an effective rate of 96.58%.
However, this percentage is not the “real” profit, since it is necessary to discount the inflation /oa devaluation of the Argentine peso.
In the case of devaluation There are many discussions about what exchange rate take as a reference. First, there is the official dollar which is the one taken as a reference for the imports and exports.
Some people consider it to be the only exchange rate to take into account, but this is very far from reality for various reasons.
To know the real interest, we must discount the rise in the dollar
On the one hand, it is a exchange rate non-existent for the ordinary citizen, since, if he wishes to acquire dollars to save or even make a consumption in dollars, even the smallest ones like paying a subscription to Spotify, 75% taxes will be added and it is limited to u$s 200 per month.
On the other hand, because even for importers, there are a lot of restrictions that were expanded in recent weeks by the national government.
Second, we have the “solidarity” or “savings” exchange rate what is he official exchange rate plus 65% of taxes, which has several restrictions and these could be extended.
Third, we have the parallel or blue exchange type that, although it is an exchange rate that people usually take as a reference, it is a fairly small market and therefore manipulable.
Finally we meet the financial exchange rates that meets several characteristics to take it as the “real” exchange rate such as being a legal exchange rate, without restrictions and, in many cases, the price determinant.
In addition, the MEP exchange rate It is the one that many people access, for example, to save for buy a property.
whatever the exchange rate that we take as a reference, it must be compared with the fixed term rate at the end of the year to know if we obtained gain in hard currency or if, on the contrary, we lost money.