Banks Raised Rates to 18% Annually: How Long Will High Profit Last

Increase in Rates for Hryvnia Deposits in Ukraine

According to ХВИЛЯ: Ukrainian banks have raised rates for hryvnia deposits to 18% annually, taking into account holiday promotions that may last until mid to late January 2026. This decision was a result of increasing rates, which occurred due to a 1.5 percentage point increase for new depositors. With such a high level of profitability, depositors can expect significant income from their investments.

However, it is worth noting that from the profitability of 18%, 23% in taxes must be deducted, which reduces the real income from deposits. The projected inflation rate for 2026 is expected to be around 9.7%, which may also affect the purchasing power of depositors. The official dollar exchange rate for 2026 is set within a range of 45-46 UAH/$, which may raise additional concerns regarding the devaluation of the national currency.

Guarantees and Risks for Depositors

In light of these changes, the Deposit Guarantee Fund continues to guarantee 100% of deposit amounts during martial law. However, after three months from the cancellation of martial law, compensation for deposits will be limited to 600,000 UAH, which may pose a serious risk for depositors.

'The banking system remains reliably protected,' - noted Dmytro Zamotaiev, emphasizing the reliability of the banking system.

In this regard, depositors may consider various deposit options, such as ultra-short and annual deposits, to maximize new opportunities in the market.

The increase in deposit rates in Ukraine reflects the response of the banking sector to the current economic situation and inflation expectations. High rates may encourage depositors to keep their funds in banks; however, it is important to consider tax obligations and the potential impact of inflation on real income. In conditions of uncertainty in the currency market, depositors should be careful in choosing financial instruments and strategies to preserve their savings.