This question torments everyone, because they have to choose between income and stability. Deposits in national currency are highly profitable and bring the depositor 16-20% per annum. At the same time, they are subject to depreciation, since during the period when funds are in the bank, the value of the deposit calculated in US dollars may decrease. In dollar deposits, on the contrary, the profitability is low (banks give from 3 to 6% per annum), but there is protection against fluctuations in the exchange rate (from the devaluation of the national currency).
Therefore, when choosing a deposit currency, you need to focus on the following:
- in what currency do you have money on hand?
- for how long do you plan to place them?
- after the end of the term of the deposit - in what currency do you need the funds?
For short deposits (up to a year):
If you have sum, and after the expiration of the term, you will need sum, then the decision is in favor of placing a deposit in sum than in US dollars (since the depositor saves on exchange rate differences). If you have dollars on your hands and after the deposit you need exactly dollars, you should undoubtedly put the deposit in US dollars.
For long-term deposits (over a year):
Take the amount of devaluation of the national currency, which is published by the media, and add this amount to the rate on the foreign currency deposit. Compare the resulting value with the rate on sum deposits. If the rate on the sum deposit is higher, then the yield on the sum deposit is higher than the yield on the foreign currency deposit.