Profitability of time deposits would drop to 5.25% by 2024

After the interest rates paid by the entities of the financial system to people who opened a deposit account at fixed term exceeded 9% annually, since September of this year the profitability of this product has begun to decrease due to the monetary policy adjustments of the Central Reserve Bank of Peru (BCRP).

In this way, the annual effective rate of return (TREA) The highest is 7.85%, according to the Superintendence of Banking Insurance and AFP (SBS). Furthermore, the trend for the following months is downward.

Víctor Díaz, managing director of Fixed Income at Credicorp Capital, explains that the future profitability of this financial product would be close to 7% by the end of the year, while by the end of 2024 it would drop to 5.25%.

“Basically, we are going to move towards 7% or 6.75% at the end of this year and towards the end of next year at 4.75% or 5.25%, is what economists and the market say,” says Víctor Díaz.

For his part, Arturo García, professor of Finance at ESAN, points out that although rates have dropped, they are still attractive for savers and adds that it is the best time to invest in this financial product before profitability is lower in the coming months.

Industry benefited

The fall in interest rates on fixed-term deposits has benefited mutual funds, which have better profitability expectations.

“One of the financial actors that directly benefited in a bearish interest rate cycle is the fixed income mutual fund industrybecause it has the ability to ensure investments for longer terms,” Díaz noted.

Data

Performance. The profitability of mutual funds in soles until September ranges between 5% and 9%, Credicorp Capital said.

Benefit. The interest rate on the fixed-term deposits offered varies depending on the money invested and the time agreed with the financial institution.