Accumulating funds is not an easy task. But it is no less important to preserve them. The most conservative, but at the same time the most reliable way to do this is bank deposits. In addition, you can not only save your funds, but even increase them in a certain way.
But a logical question arises – how to choose among Ukrainian banks the one that will best justify itself in practice. To do this, you need to know what to look for when choosing a financial institution.
Criteria for choosing a bank for a deposit
When choosing a financial institution to place funds, you should pay attention to the following factors:
Bank reliability. Perhaps the most important criterion. The financial institution must have the appropriate license. In addition, the bank must be a member of the Deposit Guarantee Fund. This is important because in the event of a bank closure, the depositor will be able to get their funds back. Another important point is that it is desirable that the bank has a share of foreign capital. This is also a kind of guarantee of reliability.
Deposit currency. Before placing your funds on deposit, you should carefully analyze the banks' offers. For example, rates on hryvnia are usually higher, and for deposits in foreign currency – lower. Therefore, you should calculate everything to find out exactly how much income you can actually get.
Interest rate. It is best to choose a bank with competitive and favorable interest rates for deposits. In 2024, Ukrainian banks mainly offer rates averaging 15%. However, this applies mainly to deposits for a period of 9 months and without the right to terminate the contract early. At the same time, the yield on long-term deposits in foreign currency does not exceed 2−3%. When choosing a financial organization, you also need to understand that you will be cooperating with the bank for more than one year. Therefore, you should take a closer look at the services that are offered there. For example, currency exchange, transfers abroad, loan conditions, and the like. Analyze which services may be relevant for you in the future and choose a bank based on this.
Deposit term. This can be either 3-4 months or a year. Determine for yourself which time frame is optimal for your goal. For example, if you want to provide yourself with a so-called safety cushion, then it is better to pay attention to short-term deposits for a period of 3-4 months. Or for deposits with the opportunity to withdraw funds early. Although the profitability in such cases will be lower (approximately 8-10% per annum), you will have access to your funds. If you don’t need the money, the deposit can be extended. Another option is to create a cascade of short-term deposits with different expiration dates.
Minimum amount. You need to make sure it matches your capabilities. The conditions of Ukrainian banks differ significantly, some allow you to deposit a minimum of 50,000 UAH, and some even from 500 UAH. By the way, all current conditions are conveniently collected on the Ministry of Finance website in the “Deposits” section. And so that we can better understand your requests and needs, we invite you to take a survey on deposits.
Availability of consultation. Services should be accessible to clients and the easier it is to obtain them and the easier it is to contact managers, the better. If this can be done not only by telephone, but also online, this will be an additional advantage.
Openness of information. Before choosing a bank and making a deposit there, you need to carefully study all the information on the deposit offer. This also applies to the contract itself. Compliance with this rule will help you avoid troubles in the future, such as hidden fees or penalties, if you want to terminate the contract early.
Positive reviews. At first glance, this criterion may seem frivolous, but special attention should be paid to it. So, for example, it doesn’t hurt to ask about the bank from acquaintances or friends who use its services. They can talk about how employees of a financial institution treat clients and deposits. Another option is to study information about the bank on the Internet, for example, on specialized websites or thematic forums.
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Therefore, even in conditions of a full-scale war, deposits are a profitable and reliable tool that helps keep money for Ukrainians. They can be used, for example, to save for a planned large purchase or to protect your savings from inflation. But choosing a bank should be approached with special care, and also with a cool head. To carefully weigh everything, choose the optimal strategy and get your benefit.
