Fixed Term Simulator: The interest rate and how much I earn in pesos if I invest today

In addition to the blue dollar, the fixed term It has been one of the most used options by Argentines as a form of investment in pesos. In recent times, the Central Bank of the Argentine Republic (BCRA) has adopted policies in this regard, the most relevant of which was that of 12 March 2024, which allows each bank to set its own interest rate.

In this regard, before investing, one of the questions that most impacts users is this “interest rate” AND “how much I earn“if you decide to place pesos at fixed terms. Below, we leave you a terms simulator to clarify these doubts before taking this step:

Fixed term simulator: the interest rate and how much you can earn by investing

Fixed term: what it is and how it works

As the Banco Santander website explains, a term deposit is “a financial product through which an individual (natural person) or a company (legal person) deposits a sum of money at a financial institution for a specific period of time in exchange for remuneration at an interest rate previously set. Payment of interest may be made in full after the expiry of the term or periodically during the term of the deposit.”

What are the benefits of a fixed deposit?

• The type of profit you will get with that money is known in advance.
• Profitability and invested capital are insured and have the support of the Deposit Guarantee Fund up to 100,000 euros, in the event of non-payment by the financial institution.
• Taking out a fixed-term deposit is a simple and quick process to formalize.
• The longer the expiry period, the more profitability you will achieve.

What are the disadvantages of a fixed deposit?

• In the current market environment, returns for a fixed period are lower than other products.
• While some fixed-term deposits do not charge fees for early cancellation, most banks charge fees for early withdrawal of deposited money.
• In cases where the financial institution does not allow early withdrawal, the client will not be able to use the capital until the end of the agreed period.

Fixed term: How much I earn if I invest 100,000 pesos with the new interest rate

If you open a traditional fixed-term contract For $100,000 in 30 days, the interest that will be generated is $9,041.10, which means that a total of $109,041.10 will be deposited when the term expires. If the term is 60 days, the amount obtained will be $18,082.19, and so on, depending on the number of months in which the fixed term is established.

Similarly, to make an estimate (because the exact figure also depends on public holidays and when the fixed term will be created), you can calculate how much 9.16% is (110% per annum divided by 12 by the months of the year ) of 100,000 and will give the amount there.

How much do you earn in a fixed period of 30 days?

Until March 11, all banks paid the nominal annual rate (TNA) of 110% for this type of placements. In practical terms, the banks They were no longer required to offer a minimum monthly return of 9.1% as it had been until now.

After the announcement, banks implemented a sharp reduction in interest rates on these deposits. The banks that currently pay the most for fixed-term contracts are: Nation AND Macroswith a TNA of 75% and the rest varies from 71 to 70%. Therefore, to form a fixed term in entities offering a TNA of 75%, the interest that will be received for freezing the same amount will be $6,250, at the end of the month.

Fixed term: bank by bank, what is the TNA and the interest you pay per month

• Ualawith a TNA of 77%, it pays for one month’s placements: 6.41%.
• National Bank and Macro: Pays a nominal annual rate of 75%, i.e. for a 30-day deposit offers an interest of 6.25%.
• Comaf: TNA 71%, or 5.92% at 30 days.
• ICBC, Galicia, Provincia, BBVA, Banco Ciudad, Santander, Credicoop and HSBCTNA 70%: Pays 5.83% for a one-month placement.

Ualá is itching on this point. The fixed duration is established through Uilo – a financial entity with a banking license – for 100,000 dollars, the interest it will give will be 6,416 dollars per month.