Fixed terms: keys to investing your money
The fixed term is an investment in which you deposit money for a certain time and, at maturity, you receive the principal plus interest, according to the agreed conditions.
What is a fixed term?
A fixed term It is an investment where you deposit a sum of money in a bank for a certain period. At the end of the term, you get your capital back plus the agreed interests .
Advantages of a fixed term
– It’s a safe way to save.
– You know from the beginning how much you are going to earn.
– You are covered by deposit insurance up to a certain amount.
In what currency can a fixed term be made?
You can set up fixed terms in:
– Argentine pesos.
– US dollars (in some cases).
– UVIs or UVAs, which are units that are adjusted for different indices (inflation or construction cost).
Minimum terms according to the type of fixed term
– Fixed interest rate: 30 days.
– Variable interest rate: 120 or 180 days, depending on the rate.
– Fixed term with incentives or remuneration: 180 days.
– UVIs fixed term: 180 days.
– UVA fixed term: 90 days.
Can it be cancelled before expiration?
It depends on the type of fixed term:
– Traditional: does not allow early cancellation.
– With early cancellation: allows you to withdraw the money before maturity, but at a lower rate.
What happens at maturity?
If you do not withdraw or renew the fixed term:
– The bank can automatically renew it for the same term and conditions.
– You can also agree from the beginning that it will be renewed automatically.
Can you make a fixed term in a bank where you are not a customer?
Yes. You can set up a fixed term in any bank, even if you don’t have an account there. Alone You need to have a account in pesos from which the money is debited.
Loss of the certificate and compensable fixed terms
If you have a physical certificate and you lose it or it is stolen, you must make a report and follow the bank’s procedure to recover it.
A compensable fixed term is one that you can present to another entity to deposit it in another account or constitute a new fixed term.
– Fixed terms in traditional pesos are compensable.
– Fixed terms with specific modalities (pre-cancelable, adjustable by CER, UVA, etc.) or those made through electronic channels (ATM, home banking, telephone) are not.
Fixed terms in ICUs and UVAs
Fixed terms in UVAs and UVIs are savings instruments that are updated by official indices:
– The deposit in UVAs is adjusted by the CER, which tracks inflation.
– The deposit in ICUs is updated by an index of the cost of construction for Greater Buenos Aires.
The minimum term is 90 days for UVAs and 180 days for UVIs.