How to save money in time of war: 5 tips

Five tips for saving during the war are given by the specialized publication of the Ministry of Finance.

📌 Tip 1. Keep saving.
📌 Tip 2. Distribute savings, taking into account the availability of money.
📌 Tip 3. Consider the risks for hryvnia savings.
📌 Tip 4. Do not try to "make money on the course" if you are not a professional.
📌 Tip 5. Stay away from crypto assets.

Savings methods were also discussed at the National Bank of Ukraine in the Financial Literacy Ukraine project.

1️⃣ You can deposit funds.

🟣Stable operation of banks in wartime increases the level of confidence of depositors. According to statistics, from February 24 to April 29, hryvnia deposits of the population in banks increased by 20%, or by UAH 85 billion.
🟣 What are the interest rates on deposits?
The interest rate varies depending on the term of the deposit. Short deposits have a lower rate than deposits with a longer deposit term. That is, the longer the term, the higher the rate. For example, the average rate on deposits for 1-3 months is 5-6% in hryvnia, for 12 months - more than 7%.
Also, the interest rate depends on which deposit you have chosen: a term deposit or a deposit on demand. Term is a deposit that you open for a certain period, for example, for six months or a year. Deposit on demand - when money can be withdrawn at any time. The deposit rate on demand is usually lower.
🟣 How are deposits guaranteed?
In case of liquidation of a bank, the state on behalf of which the Deposit Guarantee Fund (DGF) operates shall reimburse depositors.
For the duration of martial law and three months after, a 100% guarantee was introduced on bank deposits of individuals and individual entrepreneurs. In the post-war period: three months after the termination or cancellation of martial law, the guaranteed amount on deposits will be 600,000 hryvnias.

2️⃣ You can buy military government bonds.

🟢 This is a good way not only to support the army, but also to get a higher yield than bank deposits.
War bonds are targeted government debt securities intended for borrowing on the market in order to finance the needs of the Armed Forces of Ukraine and the state in a war.
🟢 How are bond payments guaranteed?
Payments on such bonds are 100% guaranteed by the state and serviced by the Ministry of Finance of Ukraine.
🟢 What is the rate of return?
The rate of return is determined at the auction. The rate on previously issued hryvnia bonds ranged from 9.5% to 11% per annum (depending on the maturity), dollar - 3.7% per annum, and on bonds denominated in euro - 2.5% per annum.