With rates of 97% a year, time deposits are attractive to prevent inflation from eroding income. But while the electoral campaign heats up and the lack of dollars forces the government to take them heterodox measures up to 30 days can seem like an eternity.
In this context of high inflation mixed with volatility, there is a tool that allows you to protect your savings in the short term. I am the stock exchange guaranteesa type of fixed-term daily which is done on the stock exchange and offered by almost all investment platforms on the market (IOL, Balanz, PPI, Bull Market Brokers, among others).
One of the main differences between the traditional fixed term and guarantees is that “instead of lending money to the bank, you lend it to other investors and on considerably shorter terms. In general, the terms that operate the most are those from 1 to 7 days. Although the rates are usually lower than those of a fixed maturity, they have the flexibility of not having a maturity of 30 to 90 days”, explains Massimiliano Donzelli, Head of Research at IOL investoronline.
Currently, the Nominal Annual Rates (TNA) of sureties are 83%, which implies a return in the month of 6.8%. They’re ideal for when you have a surplus you know you need in less than 30 days, or for money to ‘work’ during your 4 day holiday for example.
So, with the next long weekend on the horizon, if you invest, say, $100,000 from Wednesday through next Monday, you can get nearly $1,137 in interest.
Among the advantages of sureties, Donzelli highlights the high liquidity, certain profitability (the rate is known at the time of the operation). “From the beginning, the return on investment is known,” he explains.
It should also be emphasized that the sureties are backed by securities that the policyholder provides as a guarantee of payment. “These securities are placed in a Guarantee Fund, established by the regulation of the National Securities Commission (CNV) and by the BYMA regulation. This fund ensures that the subscriber is 100% covered in the event of default.” clarifies the specialist.
Source: Clarin
