The fixed term is a vehicle investment which consists of lending money to a bank in exchange for an interest that will be returned at the end of a certain period. Among the main advantages of this way of investing is its simplicity: in a couple of clicks, a saver can already place their pesos in this system.
How much do banks pay the fixed term
According to what was reported by the Central Bank of the Argentine Republic (BCRA)the nominal annual rate (TNA) of the fixed term at present is as follows:
- Bank of the Argentine Nation: 49%.
- Banco Santander Rio: 49%.
- Galicia Bank: 49%.
- Province Bank: 49%.
- Banco BBVA Argentina: 49%.
- Macro Bank: 49%.
- HSBC Bank Argentina: 49%.
- Credicoop Bank: 49%.
- ICBC Argentina: 49%.
- City Bank: 49%.
In all these cases, it is necessary to be a client of the bank in order to access the deposit at fixed term. However, the Banco de la Nación Argentina, the Banco Provincia, the Banco BBVA Argentina, the Banco Credicoop and the Banco Ciudad allow the investment of non-customers.
How to calculate the profit of the fixed term
To calculate the approximate monthly profit of the fixed term just take the interest rate annual (49%) and divide it by the number of months in a year (12), in this way, we will obtain the nominal interest rate that banks pay.
For example, currently a fixed term at 30 days returns a nominal monthly benefit of 4.08% (49 / 12). This means that $100,000 invested in fixed term at 30 days they provide a nominal profit of approximately $4,083.
If the profit is reinvested and a new fixed termwhat is known as the effective rate is obtained, which is nothing more than the compound capitalization of this investment.