Fixed term: How much is earned by investing $ 100,000 after the new rise in the interest rate?

For those individuals or companies that cannot access the foreign exchange market, a alternative to save and making the money yield are the fixed-term deposits. In fact, there are currently $4.661 trillion deposited in this type of banking vehicle.

In this sense, it should be noted that this Thursday, June 16, the Central Bank of the Argentine Republic (BCRA) announced the rise of 300 basic points of the Annual nominal interest rate of the Liquidity Letters (Leliq) at 28 days, to counteract the inflationary peak. Thus, the reference rate passed from 49% to 52%. Likewise, the “mechanisms” by which the increase will be transferred “in full” to depositors, “both individuals and companies, through fixed terms with a minimum rate and UVA fixed terms” were ratified.

How much did the Central Bank raise interest rates for fixed terms

How much interest can be charged with this new rate?

With a $100,000 initial investment, 30-day return of the new nominal annual rate of 53% is equivalent to a direct yield of 4.41% in the month. For this reason, whoever places that figure you will receive 30 days later $104,416.67your original $100,000 plus $4,416.67 in interest.

Meanwhile, if the invested sum is maintained for a longer period, at an Annual Effective Rate of 67%, the monthly return will increase at a rate of 5.6%, so within 360 days, a final amount of $167,000 will be obtained.

Now 12: the government will continue with the program, but with higher rates

What profit does a UVA fixed term offer?

this instrument takes as reference at the time of placement the last 45 days of registered inflation. One thing to keep in mind is that it requires a time to reserve funds for a minimum of 90 days to pay that level of interest, while traditional ones require “barely” 30 days.

One factor that affects fixed installments UVA is that days ago the INDEC spread that the official inflation for May was 5.1%.

With these data, and while the rise in prices continues at these high levels, it can be stated that, despite the new increase in the interest rate to 4.42% per month, the traditional fixed term follow losing to inflation. For this reason, from a savings point of view and when analyzing the relationship between the rates set by the Central Bank and the inflation expectations that exceed them, “UVA fixed terms continue to be more advantageous”.

RM / fl

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