Silvana Saldisuri
07/14/2021 6:01 AM
Clarín.com
Services
Updated 7/14/2021 6:01 AM
When you think about saving, the idea of keeping
money under the mattress
is not the best option in a country where inflation is as high as in Argentina, since the peso constantly loses value.
The objective of having
money saved
should be to obtain the highest possible return.
In general, the higher the interest rate, the
higher the earnings
.
However, inflation must be subtracted from this yield to find out what the final profit is.
Namely,
when rates are high,
inflation is also high
, so
inflation
must be discounted from the return obtained.
Currently there are many instruments on the market to protect the money saved and even to generate more profits, but for those who fear risk and are more conservative, the
traditional fixed term
and the
UVA fixed term
are options to consider.
But before deciding on one or the other, it will be convenient to know in detail
what each one is about,
what are the main differences between the two, their advantages and disadvantages.
The objective of having money saved should be to obtain the highest possible return.
Photo Shutterstock.
What is a traditional fixed term?
It is the best known procedure in which a deposit is made in the bank, for a
specified period
and at the end of this time, the
Investor receives
principal plus interest
.
Deposits are typically made for 30, 60, 90, 180, or 365 days, although they can be made in almost any amount of time over the
minimum (which is usually 30 days).
These fixed terms can be made both in pesos and in dollars.
The investment can be made at the
bank branch
, at an ATM or through
home banking
.
In general, through this last option, better interest rates are obtained than in person at the branch.
Traditional fixed terms can be made in both pesos and dollars.
Photo: Reuters
What is the fixed term UVA?
This
type of saving
, previously known as UVI, was created with the aim of
protecting the saver from inflation
, in a similar way to saving "in bricks", but in a more accessible way.
The fixed terms made with this modality will be expressed in
Purchasing Value Unit (UVA).
The price of a UVA can be seen on the BCRA website and
it is updated daily through the
CER index
.
The minimum term for these deposits is
180 days
and they can only be made in pesos.
The minimum amounts range
from $ 500 to $ 1,000
, depending on the bank.
The
Precancelable UVA Fixed Term
is a variant of the UVA fixed term, launched by the BCRA at the beginning of 2020, which
allows
early cancellation of the investment
.
They work the same as normal UVA deposits, but allow you to withdraw the money
after 30 days
.
The minimum of these deposits is 90 days, with cancellation from day 30. If you opt for early cancellation, 5 days before you must notify the bank so that the cancellation can be executed.
By choosing
early cancellation
, the fixed term is no longer updated by UVAs and instead pays a fixed interest rate, which will be published daily by the BCRA.
In addition to the UVA upgrade, banks offer an
extra 1% interest
.
How to invest in a fixed term Uva:
it can be done through the website or mobile banking of any bank, which will debit the funds from the account in pesos of origin.
Banks cannot charge commissions or fees for the use of this fixed-term modality, nor can they establish limits on amounts.
Both fixed terms can be done through the website or mobile banking of any bank.
Photo: Clarín Archive
What are the differences between a traditional fixed term and a UVA fixed term?
The
main difference is
the rate they pay
. "The traditional fixed term pays a fixed rate of 37% nominal annually (for deposits of less than $ 1 million) and the second pays a variable rate that adjusts for inflation plus 1% nominal annually. That is, if it is placed One-year money, assuming a deceleration in inflation, would be 41% per year, about 7 additional points to the traditional fixed term, "explained
Ignacio Morales
, Financial Business analyst at Wise Capital.
"
The other difference has to do with the terms
. The traditional one can be done with a minimum term of 30 days. However, the fixed term UVA can only be done for 90 days. It can be canceled after 31 days (by requesting it 5 in advance) but in this case it pays a lower rate decided by the BCRA (currently it is 30.5%), "he added.
"Taking this into account, to determine
which is the best investment, you have to estimate how much inflation will be during the next 90 days
, and if there will be any change in the fixed-term rate in between. Assuming that the rate it stays at 37%, it depends on whether inflation is going to be lower or higher than 9.4%. If it is lower, the traditional one is appropriate, and if it is higher, the UVA is appropriate, "he said.
For his part, the manager of Corporate Finance of Pgk Consultores, a member of TGS Global,
Brian Torchia
, explained that "by implementing a
traditional fixed term
,
the investor already nominally agrees on the yield that he will obtain at the end of the placement
(I put $ 100 and withdraw $ 135 in a year with a 35% rate, for example) ".
On the other hand, "if a UVA-type placement is chosen, the investor does not know a priori
what the nominal return
(number of banknotes) will be since the rate that is agreed is precisely measured in another reference unit that is updated daily by a coefficient very similar to that of the CPI (commonly known as inflation) ".
"In other words, and by way of example, if today $ 100 is invested with a UVA value of $ 2, the investor would be placing 50 UVA and will know that at the end of the road he will receive 52.5 UVA in pesos at the value they have at maturity considering a rate of 5% in UVA ", he indicated.
In this way, to talk about advantages and disadvantages, it is essential to include within the interpretation the
concepts of nominal return (number of banknotes) and real (purchasing power)
.
"So then it all comes down
to how much inflationary risk the investor is willing to assume
since by making a traditional fixed term, in case of a resounding success of an inflation mitigation policy, real returns could be given above those obtainable. via its namesake in the UVA version and vice versa, if the scenario turns out to be an inflationary riot, the real return will be strongly resented and the winning option will be the competitor in this contest of alternatives, "said Torchia of TGS Global.
In conclusion, the traditional version provides
nominal predictability and exempt from income tax,
while the UVA alternative provides
predictability measured in purchasing power (inflation),
although because they are fixed terms with an adjustment clause (ex: adjustable by variation of the UVA) , are taxed in income tax on a progressive scale that goes from 0% to 35% depending on the rest of the taxable income that the investor has.
Likewise, there are other rather operational factors that are transversal to both alternatives, such as pre-cancellation and deadlines, variables that will always provide greater / less attractiveness in any of the available versions.
It will then be decisive for the investor's final decision to
take into account his perception of expected inflation and the level of risk in the
face of this phenomenon that he is willing to face.
LN
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