The Central Bank cut the interest rate on fixed terms for the fifth time so far in the government of Javier Milei. The yield of the reference fixed terms is today at 50%, but due to the elimination of the minimum floor, banks choose to place the percentage below that set by the monetary authority.
The measure is part of the monetary plan of the government of Freedom Advances to clean up remunerated liabilities with which the interests of traditional instruments are paid and also affects virtual wallets, which invest in these types of tools or funds called money market to pay daily returns.
In this context, users of both types of financial investments wonder which is better, in a context of inflation that is clearly slowing down but still at double-digit levels and purchasing power that is collapsing at the same time.
Fixed term or virtual wallet?
Both tools have their pros and cons and it is important to highlight that all rates in pesos are negative against inflation. That is to say, the returns do not exceed the monthly Consumer Price Index (CPI). Making a fixed term consists of investing a certain amount of money through the banking option and, at a minimum, leave the money parked for 30 days. With the interest rates offered by banks in the order of 40% average, the monthly return that the investment will return will be 4.1%.
In the case of fintech companies that offer paid accounts, they offer around 60%, but not for much longer since as the days go by they will adapt to the new annual rate set by the Central. In this way, the daily return is an average of 0.16% and the monthly return is 4.9%..
The biggest disadvantage of the fixed term is that the money is not liquid for a period of 30 days, meaning that the person cannot use that money until the chosen term ends. The disadvantage of virtual wallets is that the percentage will drop below the rate of the traditional instrument. In favor, the user can have his pesos at any time, with the same speed as debiting the card from a bank account.
What is the virtual wallet that pays the highest rate?
- Payment Market: 61.2%
- Orange: 60% with a cap of $300,000.
- Let’sBit: 45.83%.
- Personal Pay: 65.4% annually (has extra returns according to different levels: 10% more in level 3, with consumption the previous month of more than $200,000; in level 2 it is +7%, with consumption of at least $80,000).
- Uala: 64.94% (before, 73.5% annually)
- Prex: 69.5%.
What is the bank that pays the most for fixed terms?
- Mortgage: a nominal annual rate of 51%, that is, an interest for a fixed term of 30 days of 4.25%.
- ICBC, City and Bank Julio: 50% (TNA), or an interest of 4.17% for 30 days.
- Uala: 45% (TNA) or 3.75% monthly return.
- CMF: 44% nominal annual rate, or 3.66% per month.
- Banco Galicia and Bank: 43% TNA, that is, a yield of 3.58%.
- Macro, Regional, BICA and VOii: a nominal annual rate of 42%, or an interest of 3.50%.
- Comafi, Del Sol and Tierra del Fuego: 41% annual nominal rate, that is, 3.42%.
- Bapro, Credicoop, BanCor, Dino and Meridian: 40% (TNA), that is, a monthly return of 3.33%.
- HSBC: 39% nominal annual rate, or 3.25%.
- Santander and BBVA: nominal annual rate of 38%, or a monthly return of 3.16%.
- BMV: with a nominal annual rate of 37%, that is, an interest of 3.08%.
