Which one is more convenient now with the new rates?

Inflation would have closed July close to 8% and point to 90% throughout the yearas estimated by private consultants. The pesos are losing value in an accelerated way, so the idea of ​​​​storing them under the mattress is not the best option, even for a few weeks.

At a time like the present, in which the political and economic uncertainty after the recent cabinet changesThe objective of having hoarded silver should be to obtain the highest possible return.

Although today there are several instruments in the capital market to protect the purchasing power of money and even obtain profits, for those who fear risk and are more conservativesthe fixed term traditional and the fixed term UVA These are options to consider.

In general, the higher the interest rate, the higher the earnings. Nevertheless, according to the specialists, the promised performance will have to subtract inflation to know what the final profit was.

Taking into account that the Central Bank of the Argentine Republic (BCRA) recently defined a strong increase in the minimum rate of common fixed terms, taking it to 61% annual nominal (compared to the 53% that prevailed before), what is now the most convenient fixed-term modality so that the pesos do not lose value?

Beat inflation, the minimum objective of those who invest in pesos today. Photo: File.

How does a traditional deadline work?

It is the best known procedure, in which a deposit is made in the bank for a certain period. At the end of this time, the inverter receives the principal plus interestapplying a agreed rate at the beginning.

Deposits can be made for 30, 60, 90, 180 or 365 days, although currently they can be made in almost any number of days above the minimum (30).

How to invest in a traditional fixed term? The deposit can be perform at the bank branchat an ATM, through home banking or in the entity’s app.

A fixed term can be done at the bank branch, at an ATM or from the PC or cell phone.  Photo: Shutterstock.

A fixed term can be done at the bank branch, at an ATM or from the PC or cell phone. Photo: Shutterstock.

What benefits does a UVA fixed term offer and how is it different from the common one?

This savings modality was created with the aim of protect the saver from inflation. The fixed terms made with this modality will be expressed in Purchasing Value Units (UVA).

When constituting them, the weights are converted to the price of the day in a certain amount of UVAs, whose value will be adjusted daily according to the CER coefficient, at the rate of Inflation index of the INDEC. the value of the GRAPE it can be consulted on the BCRA website.

The minimum term of this investment is 90 daysinstead of 30. And at the end, the UVAs converted back to pesos to the price of the moment, which achieves offset price increases of the period. Therefore, there is no chance of losing against inflation.

The Pre-cancelable UVA fixed term It is a variant launched by the BCRA at the beginning of 2020, which allows the investment to be canceled in advance. They work just like normal UVA tanks, but let withdraw the money from 30 days.

Now if you end up using the Anticipated cancelationthe amount invested will not be returned updated by UVA but a fixed interest rate will be applied less than the traditional fixed term. Now that pre-cancellation rate is 56% annual nominal.

The minimum of these deposits is also 90 days. And in addition to the UVA update, banks pay a 1% extra interestwhich guarantees the saver not only not to lose against inflation but to have a small actual profit.

How to invest in fixed term UVA? It can be done through the website or mobile banking of any bank, which will debit the funds from the account in pesos of origin.

The banks they cannot charge commissions or fees for the use of this modality of fixed terms, nor establish limits of amounts.

What are the requirements to invest in a traditional fixed term or UVA?

. Have a savings account or a current account with sufficient funds to make the fixed-term deposit.

. Being over 18 years.

. In some cases, they may request documents proving that the funds have a lawful origin. For example, it can be a salary receipt.

To really earn interest must exceed inflation.  Photo: File.

To really earn interest must exceed inflation. Photo: File.

Traditional fixed term or UVA fixed term: which one is more convenient now according to your expectations?

As already mentioned, the BCRA now requires banks to pay at least a nominal annual rate (TNA) of 61% for traditional fixed-term deposits of up to $10 million savers do. That represents a effective annual return of 81.3%. And one monthly profit effective of 5.08%.

This means that if a person deposits now $100,000 in a common fixed term a 30 dayswill receive $105,080 to the expiration. Also, if you reinvest that money in a new 30-day fixed term and repeat that investment every month for a yearwill end with $181,300. Namely, will earn $81,300.

But considering the inflation projection for the coming months, these rates are still far belowtherefore, common fixed terms continue to be unattractive.

Unless the saver bets that with the recent cabinet changes government will manage to tame the rise in pricessoon taking it to levels less than 5.1% monthly.

“Although the rise recently defined by the Central Bank is a positive figure, if the acceleration of inflation that will result from the month of July is taken into account will be greatly exceeded that rate,” said financial analyst christian butlera Clarion.

“In this stage, will still be convenient the fixed term UVAwhich is the one that has coverage because it adjusts for inflation,” he added.

In summary, whoever is evaluating today whether to place their savings in a traditional fixed term or in a UVA fixed term should know that the latter, being very dynamicgenders greater adaptation to the context economic of the country. That is, if there is a change in scenerythat will be seen reflected right away in yields.

Thus, at least in recent times, fixed terms in UVA ended up being more profitable than traditional fixed terms. However, UVAs have the disadvantage that the investment is fixed by 90 days.


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