Carrying money to the bank
To avoid the temptation of spending purpose saving, you can put your temporary available assets on short deposit to the bank where your money will be eagerly put for 1-3 months. But, to tell you the truth, interest rates on such deposits are not high: 7-13% of year time profit in hryvna, 6-9.5% - in US dollars and 4-6.5% - in euro. Thus you shouldn’t count on significant increasing of the input sum. But you will not lose anything, too as your account will be opened free of charge and the bank doesn’t demand any payment for service.
The short deposits give the opportunity to save, and even to increase a little, your assets by the definite term, - says Elena Rudneva, the Head of deposit department for the natural persons of ‘Khreschatyk’ bank – If it is known that the money will be needed in the nearest future, it is better to open the account for 1-3 months, as anticipated discounting from longer-term deposit leads to losing the significant part of the added interest.
We can also point out that the procedure of opening the short deposit is very simple and easily done. All that you need for it is to come to the bank with your passport, copy of your identification number and money that you intend to put. And in 30-60 minutes your savings will be placed for the nearest 3 months.
By the way, the risk level in short depositing your money is minimal. After all, the probability of some accident happening to the chosen bank within a year is much higher than within several months. For this reasons some specialists recommend choosing the bank for short deposit following the rate of interest.
Conclusion: It is not possible to get a lot from the short deposit – you get small rate of interest in the banks for ‘short-term’ money. But, however, the probability of losing or spending saved money before the fixed term is very low.
Giving savings to the credit union
For a short term you can also try to place your money in a credit union (CU). The rate of interest which CU are ready to pay are somewhat higher than bank deposit one. On average, you can count on 16% of year time profit in hryvna, 9% - in dollars and 7% - in euro. But it is not that easy to find a credit union which would agree to accept your savings for a short term – most part of these organizations are ready to place your money for not less than half a year. One more quite important aspect here is that the risk to lose your savings in case the credit union went broke is higher.
Conclusion: You can get more from the short-term placement of your assets in the credit union than in the bank. But this operation is connected with higher risk level of losing all your savings. Besides that, it is rather troublesome to find the credit union which would put your money into circulation for a short term.
COMPETENT PEOPLE
Leonid Krasavtsev, the Director of ‘Prostobank Consulting’ Company:
There is plenty of variants where to place your money for a while – to deposit, to place it at high interest to the credit union, to invest in bank metals or to get your share in unit investment trust. But I would recommend a common person to give preference to bank deposit: your profit will, most likely, not be as high as in the credit union or unit investment trust, but the risk level of such placement is minimal.
