The liquidity of the financial system remains at comfortable levels, especially in national currency, thanks to a constant growth in deposits and a low rate of loans, according to the Central Reserve Bank of Peru (BCRP). This means that there is enough money available in the financial system to meet the needs of loans and other operations. The BCRP also highlighted that this stability contributes to confidence in the country’s financial system.
In April, private sector deposits grew 7.5% annually, after having increased 5.9% in March and only 3.3% in December 2023, according to the BCRP. However, a more detailed analysis reveals that the different types of deposit products in the system have had variations in their growth. This indicates that, although deposits are generally increasing, not all savings products are behaving in the same way.
What type of savings grows the most in Peru?
In April, the type of savings that increased the most was demand deposits. This type of account is especially popular with companies and business owners because it allows them to access their money immediately using checks.
During the same month, the total balance of this product grew by 15.7% annually, after having risen 4.3% in 2023. The largest increase was observed in dollar deposits.
The second type of deposit with the highest growth in April was the time deposit, with an increase of 12.1%. This type of account has been very popular in the last two years among people who have extra money and want to make profits by taking advantage of the high interest rates in the market.
Banks offer up to 6.36% profitability on term deposits ranging from 181 to 360 days, while municipal savings banks can offer up to 7.73% for the same type of product, according to the Superintendency of Banking, Insurance and AFP (SBS).
The demand deposit is a bank account that allows holders to access their funds immediately and without time restrictions. Photo: Andina.pe
On the other hand, savings accounts used for transactions generally do not offer attractive returns and decreased by 1.4% between April last year and the same month this year. This decrease is mainly due to the reduction in savings in dollars, which decreased by 8.2%, although the 2% growth in current savings in soles mitigated this effect.
Compensation for Time of Service (CTS) experienced the largest drop in savings, with a decrease of 8% during the evaluated period. Although the annual drawdown rate has been decreasing in recent months, an increase in withdrawals is expected due to the upcoming availability of funds.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
