The Central Bank of the Republic of Argentina has announced a new cut in interest rates for fixed-term deposits, which has already accumulated a reduction of more than 100 percentage points in 2024 and could fall below 25% annually soon. This situation has led to massive cuts in the earnings of fixed-term bank deposits, according to an official BCRA study, and more reductions are expected for deposits with this new decision.
Interest rates by bank have been notably adjusted, some of which are as follows: Banco Nación 25%, Banco Santander 24%, Banco Galicia 25%, Banco Macro 26.5%, Banco Patagonia 27.5%, Banco ICBC 27.8%, Banco Ciudad 25%, Banco Provincia 26.5%, BBVA 27.5%, HSBC 25%, Banco Supervielle 27.25%, Banco Comafi 26.5%, Ualá 32% (30 days) and Banco Columbia 38% (for new customers).
Elon Musk has made a strong statement about the future of the country, generating expectations. With the decline in interest rates, savers have begun to seek new investment alternatives, such as virtual wallets, which offer higher returns than banks. Among the applications with the best rates are Cocos Pay, Ualá, Naranja X, Personal Pay, Mercado Pago, Prex, and Claro Pay.
On the other hand, the Central Bank has implemented a new cut in passive passes, bringing the interest rate to 29%. This scenario has encouraged Argentines to consider other investment options to protect their savings from inflation, such as deposits in pesos offered by some financial entities.
Regarding UVA fixed terms (Units of Purchasing Power), they are considered a protected investment and savings alternative against inflation in Argentina. Some financial entities have shown offers with better rates than traditional bank deposits, providing the opportunity to preserve the purchasing power of savings.
