Fixed Term: Which Bank Offers the Most for Investing $500,000

Those with $500,000 available looking for a short-term alternative can compare what each bank offers for immobilizing that money for 30 days. The rates for fixed terms have changed since the early days of September, and there is currently a significant difference among the main entities.

According to the latest comparison published with data from the Central Bank of the Argentine Republic (BCRA), Banco Provincia offers the highest rate among traditional banks, followed by BBVA and Macro. The difference between entities may seem irrelevant when looking only at the annual percentage, but when translated into a deposit, it defines how much money the saver receives at the end of the period.

The BCRA has stopped setting a mandatory minimum rate for fixed-term deposits. Therefore, each entity defines the yield it offers and can modify it according to market conditions. As of September 9, the nominal annual rates reported for the main banks are:

• Banco Provincia: 21%
• BBVA: 19.5%
• Banco Macro: 19.5%
• Banco Nación: 18.75%
• Banco Credicoop: 18.5%
• ICBC: 18.1%
• Banco Ciudad: 18%
• Banco Galicia: 17.75%
• Banco Santander: 16.5%
• Banco Patagonia: 16%

Banco Provincia leads the ranking among traditional entities, with a rate that exceeds BBVA and Macro by 1.5 percentage points. Banco Nación, which had offered 20% at the beginning of the month, now appears with 18.75%. There are entities that pay higher rates outside of this group. For example, Reba appears with 24% TNA, while Banco CMF and Crédito Regional reach 23.5%.

With an investment of $500,000, the yield directly depends on the TNA offered by each entity. To calculate the interest on a 30-day deposit, the annual rate can be applied proportionally to the period. Let’s look at some examples:

• with the 21% from Banco Provincia, the $500,000 would generate $8,630 in interest over 30 days. At maturity, the saver would receive about $508,630 in total.
• at BBVA and Macro, with a TNA of 19.5%, the yield would be $8,014, so the final capital would reach $508,014.
• at Banco Nación, with a rate of 18.75%, the profit would be $7,705, with a final amount of $507,705.

The difference widens when comparing with entities that have the lowest rates. A deposit of $500,000 at Banco Patagonia, with a TNA of 16%, would yield $6,575 in interest, ending with $506,575. Thus, between the 21% from Provincia and the 16% from Patagonia, there is a difference of $2,055 for every $500,000 placed for 30 days.

Before making the deposit, it is advisable to check the rate that the bank offers that same day. Entities can modify their yields, and the BCRA comparison serves as a reference to know the conditions of each institution.

It is also important to check whether the rate applies to customers of the entity or non-customers, as there may be differences. Some entities publish specific conditions for those who open a deposit through digital channels or for individuals who do not yet have an account.

Another point is the term. In a traditional deposit, the money remains immobilized until the maturity date. If the $500,000 is needed before the 30 days are up, the money cannot be withdrawn early as if it were a regular bank account. Therefore, it is recommended to place only funds that will not be needed during that period.