High inflation data leads Argentines to seek to do “something” with the extra pesos they have so as not to lose purchasing power. One of the alternatives that closely follows the prices of the economy is the traditional fixed term. One of the preferred channels to do so is through the Bank provincethe public entity that has a large volume of customers in the system.
In order to realize this investment, iProfessional took a placement for a Example initial amount of $100,000 for a 30-day period, which is the minimum time requested.
Since mid-March, the traditional fixed term has paid a higher interest rate because the Central Bank raised the nominal annual rate (TNA) up to 78% for individuals who make deposits of less than $10 million.
In this way, the monthly income of a bank placement is now around 6.4%, an interest that was below the consumer price index (CPI) registered in March.
Traditional fixed term and rising inflation
The increase in prices in the economy caused the BCRA to raise interest rates last month, although the recent official inflation data of 7.7% last monthpublished by INDEC, put pressure on the monetary entity to a new increase in the yields of the traditional fixed term.
The counterpart of this is that, according to data from the Survey of Market Expectations (REM), published by the Central Bank based on a survey of different economists, the projections of the experts expect that in April the inflation rate will decrease and that mark in all this month a 6.3%. If this figure occurs, bank deposits would once again beat the CPI, since they yield 6.4%.
After the inflation data for March of 7.7%, economists expect the traditional fixed term to recover its positive income in April.
Besides, in the REM it is considered that in May the National CPI will drop to 6.1% and in June it will be 6%. Therefore, if these forecasts do not change, the traditional fixed term would once again become a winning investment.. It will be necessary to verify it in the facts, as a result of the current inertia towards the rise of food prices and the announcements of increases in rates for public services and transport.
However, by taking the traditional fixed term, the income improves when taking into account the Annual Effective Rate (TEA), which is 113%, and it is obtained if the money placed plus the interest earned is constantly renewed every 30 days, during a period of a whole year. Thus, the theoretical gain measured in TEA is 9.29% per month, a figure that exceeds the highest inflation expectations.
And that’s how you win price increase expected by economists, around 110% for the next 12 months, according to the latest REM.
Fixed term Banco Provincia: how much you earn with $100,000
At the time of calculate how much you can earn in a traditional fixed term in Banco Provincia, with the example of a deposit of an initial capital of $100,000, the answer is that after a period of 30 days a total amount of $106,410 will be obtained.
That is, specifically, they will achieve 6,410 “extra” pesos after waiting the required month, which represents a monthly rate of 6.4%.
During the first nine months of last year, the Buenos Aires public bank added more than 3.4 million customers for the development of digital platforms, according to information from the entity.
If $100,000 is placed in a traditional fixed term, in just 30 days an extra $6,410 will be earned.
Regarding the steps that must be fulfilled in order to establish a traditional fixed term in Bank provinceyou must enter the page BAPRO official websiteand go in the menu to the segment “investments“.
At that point of the site, you have to select “fixed term”then mark that the web fixed term (home banking), or “traditional” will be carried out, where the section “I invested now” directs the user to the Province Internet Bank (BIP).
The operation to constitute this investment is concluded by marking the quantity of pesos that is desired and the time the one you love leave that money embedded, with the exception that the minimum time requested is 30 days.
Similarly, Banco Provincia offers the option of “automatic renewal”, where at the expiration of the fixed term this investment is reconstituted for one more period, placing the initial capital plus the interest generated. The fact to consider is that the maximum period of automatic renewal is 180 days.
In turn, Buenos Aires banking customers can make this type of investment through the Province Internet Bank (BIP) or in person in a branch. The minimum amount to invest is 1,000 pesos.-
