Interest rates on deposits in Ukraine are increasing.

In May, bank’s average interest rates on new hryvnia consumer deposits grew to 11.9% per annum from a month-earlier rate of 11.6%. According to the National Bank, rates for new deposits for the public in foreign currency increased from 0.8 to 0.9%. As for enterprises, hryvnia deposit rates fell from 11.4% to 10.8% per annum, and currency deposits increased from 0.4% to 0.7% per annum.

Bank’s deposit portfolios increased by 1.7% to UAH 2.06T in May. At the same time, citizens increased investments in hryvnias by 2% and reduced foreign currency deposits by 3.5%.

Since last summer, the NBU has been increasing the attractiveness of hryvnia deposits. As a result, most banks offer a 15-20% rate per annum for deposits in national currency for three months and longer. Such profitability allows depositors to protect their savings from inflationary depreciation.