Ukraine's state-owned PrivatBank (Kyiv) announced on Monday that it will increase interest rates on all major types of deposit accounts starting April 1. The new rates will apply to both new and renewed deposits for corresponding terms, with a maximum annual rate of 13%.

"We support the National Bank of Ukraine's efforts to enhance the attractiveness of hryvnia savings for Ukrainians and its decision to raise the key interest rate. The new deposit rates will provide our clients with additional protection for their savings against inflation," said Dmytro Musiyenko, a board member responsible for retail banking.

According to the bank's press release, PrivatBank deposits for 10-12 months will yield 13% per annum (previously 10%), while 6-9 month deposits will now offer 10% (up from 9%). Savings for 4-5 months will earn 12% (previously 11%).

The highest interest rate, at 14% per annum, is designated for military personnel receiving targeted government payments through PrivatBank's special Glory to Heroes deposit account. Previously, this rate was set at 13.5%.

PrivatBank serves over 18 million customers. In 2024, the total amount of funds in client accounts grew by more than 10%. Over 500,000 citizens hold term deposits totaling UAH 81 billion, while the total deposit portfolio exceeds UAH 440 billion. As of January 1 this year, PrivatBank accounted for 36% of the retail deposit market and 19.4% of the term deposit market.

As reported, on March 7, the National Bank of Ukraine (NBU) raised the key policy rate from 14.5% to 15.5% in response to rising inflation.

Furthermore, in a bid to counter inflationary trends and enhance the attractiveness of hryvnia savings, the NBU has adjusted the parameters of its key rate policy. Effective April 4, the spread between the key rate and three-month deposit certificates will be increased by one percentage point to 19%.

"This will contribute to a further rise in interest rates on fixed-term hryvnia instruments, thereby strengthening the protection of citizens' hryvnia savings from inflationary depreciation. As a result, we anticipate a reduction in risks related to price dynamics, the foreign exchange market, and international reserves," the NBU stated.

Additionally, the central bank is expanding opportunities for banks to place funds in three-month deposit certificates, depending on their success in increasing hryvnia deposits from the population over the past 12 months. The multiplier for this calculation is being raised from 3 to 3.5.

Later, the NBU noted that certain state-owned banks continue to benefit from excess liquidity due to the uneven distribution of social payments and military salaries, disregarding the regulator's key rate policy measures. Meanwhile, the share of term hryvnia deposits in banks has been steadily declining.

"Some banks... refrain from adjusting their own interest rate policies, neglecting corresponding steps taken by the NBU. This has resulted in a highly restrained pace of deposit rate increases across the banking system," the NBU's Monetary Policy Committee concluded in its discussions.