PrivatBank to Raise Interest Rates on Hryvnia Deposits to 13-14% from April 1

Ukrainian state-owned PrivatBank (Kyiv) announced on Monday an increase in interest rates on all major types of deposit accounts, effective April 1. The new terms will apply to both new and extended deposits for the corresponding period, with the maximum annual rate being 13%.

“We support the initiatives of the National Bank of Ukraine to increase the attractiveness of hryvnia savings for citizens and its decision to increase the key interest rate. New deposit rates will provide our clients with additional protection of their savings from inflation,” commented Dmytro Musienko, member of the board responsible for retail banking.

According to the bank's press release, the yield on PrivatBank deposits for a period of 10-12 months will be 13% per annum (previously 10%), on deposits for 6-9 months – 10% (previously 9%). Savings for a period of 4-5 months will bring 12% per annum (previously 11%).

The highest interest rate — 14% per annum — is valid for military personnel receiving state target payments on a special PrivatBank deposit account “Glory to the Heroes”. Previously, this rate was 13.5%.

PrivatBank serves more than 18 million clients. In 2024, the total amount of funds in client accounts increased by more than 10%. More than 500 thousand citizens have term deposits for a total of UAH 81 billion, and the total deposit portfolio is over UAH 440 billion. As of January 1 of this year, PrivatBank's share in the retail deposit market was 36%, and in the term deposit market – 19.4%.

As reported, on March 7, the National Bank of Ukraine (NBU) increased the key rate from 14.5% to 15.5% in response to inflationary processes.

In addition, in order to combat inflationary trends and increase the attractiveness of hryvnia savings, the NBU changed the parameters of the key rate policy. From April 4, the spread between the key rate and three-month deposit certificates will increase by one percentage point to 19%.

“This will contribute to a further increase in interest rates on urgent hryvnia instruments, thereby strengthening the protection of citizens' hryvnia savings from inflationary depreciation. As a result, we expect a reduction in risks associated with price dynamics, the foreign exchange market and international reserves,” the NBU noted.

The National Bank also expands the banks' opportunities to place funds in three-month deposit certificates depending on their success in increasing hryvnia deposits of the population over the past 12 months. The multiplier for this calculation increases from 3 to 3.5.

Later, the NBU indicated that some state-owned banks continue to experience excess liquidity due to the uneven distribution of social payments and military personnel salaries, despite the regulator's key rate policy measures. Meanwhile, the share of term hryvnia deposits in banks is steadily declining.

“Some banks… refrain from changing their own interest rate policy, ignoring the relevant actions taken by the NBU. This has led to an extremely slow pace of increase in deposit rates in the banking system,” the NBU Monetary Policy Committee concluded during its deliberations.