Despite the difficult conditions of the war, more and more Ukrainians are paying attention to investment opportunities to preserve and increase their savings. The most popular options remain bank deposits, domestic government loan bonds (OVDP) and the purchase of foreign currency, in particular US dollars. Each of these instruments has its advantages and disadvantages, depending on the financial goals of the investor.
Bank deposits remain one of the easiest and least risky ways to invest. According to Ukrainian legislation, the Deposit Guarantee Fund ensures the return of 100% of bank deposits during martial law. Banks offer deposits for different terms, and interest rates can vary between 14-17% per annum. However, it is worth noting that the interest received is subject to tax — 18% personal income tax and 1.5% military duty.
The senior financial analyst of the ICU group, Taras Kotovych, gives an example in the fall of 2023: opening a deposit at 14.5% per annum in the amount of 10 thousand hryvnias, the client in 2024 could receive the following income after taxes:
- UAH 292 for 3 months
- UAH 584 for 6 months
- UAH 1,168 for 12 months
At the same time, the real return on the deposit, taking into account the projected inflation at the level of 9.7%, is only 4.8%.
Given the instability of the hryvnia and the devaluation of the national currency, many Ukrainians choose to buy foreign currency — mainly dollars or euros. So, if in January 2022 the dollar exchange rate was UAH 28.5, then by November 2024 it had risen to UAH 41.5. This means that 1 thousand dollars that were lying "under the pillow" increased in price by 13,000 during this time. UAH
Taras Kotovych also gives an example: if in October 2023 an investor purchased the equivalent of 10,000 hryvnias in dollars (approximately $260), then by selling the currency after a year, he would receive about hryvnias 800 in income. However, in order to profit from exchange rate fluctuations, it is important to have experience and follow the market, because banks and exchangers have a spread - the difference between the price of buying and selling a currency.
Domestic government loan bonds (OVDP) are one of the most reliable investment instruments because they are guaranteed by the government. In addition, the income from such bonds is not taxed, which is their great advantage. In September 2023, the yield on OVDP with maturities of 3, 6, and 12 months was 17%-19% per annum.
According to analysts' calculations, an investment of 10,000 UAH in OVDP for 12 months would bring an income of UAH 1,500, which is more than the income from a deposit (UAH 1,000) and currency transactions (UAH 900-1,000 at an exchange rate of UAH 45 per dollar). OVDP do not need to pay taxes, which makes them even more attractive for investors.
