Topic

Deposits and bonds

Where to keep money at interest with minimal risk: deposits, government bonds and savings accounts. We compare after-tax returns and terms.

Articles

How to choose where to keep money at interest

For money that must stay safe without losing value, there are three main options: a savings account, a fixed-term deposit and government bonds (OVDP). They differ in access, return and tax, which is why they work best together.

  1. 1Savings accountMoney available at once, the rate is usually lower
  2. 2Fixed-term depositHigher rate, money locked for a term, 23% tax on interest
  3. 3Government bondsIncome free of income tax, sale before maturity at market price
The longer the money can stay put, the more return you can get. The diagram is simplified: compare specific rates after tax.

How to compare offers

  1. Count income after tax. Multiply the deposit rate by 0.77 to see what you actually receive.
  2. Compare with inflation. If the after-tax income is below inflation, your money still loses value. See our article on inflation.
  3. Read the terms for early withdrawal and compounding: the more often interest is added to the balance, the bigger the result.
  4. Split large sums between several banks so each deposit fits within the guaranteed amount that will apply after martial law.

A detailed comparison with calculations is in “Deposit or government bonds: which pays more”.

FAQ

What taxes apply to deposit interest in Ukraine?

18% personal income tax and the 5% military levy, 23% of the accrued interest in total. The bank withholds them itself, so you receive the net income.

Are bank deposits guaranteed?

Deposits of individuals in banks that participate in the Deposit Guarantee Fund are protected. During martial law the full amount of the deposit is guaranteed; after it, up to UAH 600,000 per depositor per bank.

Which pays more: a deposit or government bonds?

At the same rate, government bonds (OVDP) pay more because their income is not taxed for individuals. To compare, divide the bond rate by 0.77: that gives the deposit rate with the same take-home income.