Is the fixed term worth it? How much does $1,000,000 generate in 30 days

Today, the scenario for savers looking to invest pesos in the short term through a fixed term deposit shows significant differences among banks. With $1,000,000, the profit that can be obtained after 30 days varies according to the Annual Nominal Rate (TNA) offered by each institution and also depending on the channel used to make the deposit.

For example, Banco Nación offers a different rate depending on whether the transaction is made in branch or electronically. This difference alters the final result of the same investment, even when the amount and the term are exactly the same. The outcome mainly depends on the chosen institution, the current rate, and the method we choose to establish the investment.

How much does a fixed term deposit of $1,000,000 generate in 30 days

At Banco Nación, the rate for a traditional fixed term deposit in pesos for 30 days differs depending on the channel. The institution reports a TNA of 15.50% for transactions made in branch and 19% for those made electronically. With $1,000,000 for 30 days, the results are:

• branch: with a TNA of 15.50%, the profit is $12,739.73. At maturity, you receive $1,012,739.73
• electronic channel: with a TNA of 19%, the profit is $15,616.44. At maturity, you receive $1,015,616.44

The traditional fixed term deposit has a minimum period of 30 days. Therefore, before placing the money, it is advisable to define whether that $1,000,000 can remain immobilized for the entire month. If there is a possibility of needing part of it before maturity, the yield is no longer the only important criterion.

The rates offered by major banks for this tool

Since the mandatory minimum rate was eliminated, each bank defines the yield it offers for fixed term deposits. This creates differences among institutions and makes comparing before investing potentially alter the outcome that the same capital leaves us. The reported values for deposits in pesos for 30 days at major institutions are:

• Banco Nación: TNA 19%
• Banco Galicia: TNA 17.5%
• BBVA: TNA 19.5%
• Banco Santander: TNA 16%
• Banco Provincia: TNA 19.5%
• Banco Macro: TNA 18.5%
• Banco ICBC: TNA 17.7%
• Banco Ciudad: TNA 17%
• Banco Patagonia: TNA 16%
• Banco Credicoop: TNA 17.5%

How to know if a fixed term deposit is worth it

The first point to analyze is liquidity. In a traditional fixed term deposit, the pesos remain immobilized until the maturity date. There are also alternatives with early cancellation. Banco Nación offers a pre-cancellable fixed term deposit for 180 days that allows access to funds from 30 days, although if this option is chosen, a lower rate than that corresponding to the original maturity applies.

The second issue is inflation. INDEC reported that the national CPI increased by 2.1% in July and accumulated a year-on-year increase of 33.8%. A TNA of 19% corresponds to a yield of 1.56% for 30 days. In the example of $1,000,000, we are talking about $15,616.44 in interest. If prices were to rise more than that percentage during the same period, the capital would grow, but it would lose purchasing power.

The UVA fixed term deposit also appears as a different alternative. In this case, the capital is adjusted according to the evolution of the UVA, linked to the price index, and an additional rate is added based on the product's conditions. Banco Nación offers this modality with terms starting from 90 days.

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