People who have money saved usually think about where to put it so that it does not lose value, given the still quite high inflation. If we look at the forecast of the NBR, it is for the end of March next year, The Central Bank expects 4.7% (+/- 2.4 pp).

If the forecast comes true, you will benefit from both bank deposits and the March-April 2023 Fidelis government bond program, which also has a special tranche for blood donors with a slightly higher interest rate.

It should be borne in mind that in the case of Fidelis, you must have a minimum of 5,000 lei or 1,000 euros if you want to subscribe, except for the tranche for blood donors, where the minimum amount is 500 lei.

*Subscription for Fidelis starts from Monday – March 27, after which they will be listed on the exchange.

*In banks, the amounts are indicated after payment of the commission and income tax. There is no tax on government securities

*Information about bank interest rates is taken from the platforms Finzoom.ro

What are the offers for savings placed for a year

Banks offer high interest rates, but for an amount of 500 lei deposited per year, the annual interest rate is negative. That is, as a result, you will take less money than you put. This means paying close attention to fees, as they eat up all your interest, even if it’s high, leaving you with less.

For example, there are banks that offer an interest rate of 8%, but the annual interest rate is -5.6%. So, out of 500 lei, you will have 472 lei left. Besides, inflation also hits you. So a double loss.

Fidelis has a special tranche for blood donors, in which 500 lei is an interest of 7.7%. Thus, at the time of repayment, you will have an additional 38.5 lei.

According to representatives of the Ministry of Finance, blood donors will also be able to pre-pay through brokers. “The provisions of the prospectus, including the confirmation of donation, are also sent to authorized brokers who have an agreement with the broker syndicate. This is a subscription to the issue, not after (i.e. for sale on the exchange). No),” we were told.

Going back to the banks, if you deposit money for a year, but it is a larger amount, i.e. 5,000 lei, the best interest rates are between 7 and 9.3%. You will receive 253 – 418.5 lei.

Classic Fidelis (i.e. NOT for blood donors) for 1 year has an interest rate of 6.7%, resulting in a profit of 335 lei.

Offers are valid for 3 years

If we talk about investing money for 3 years, but without interest capitalization, then in banks we see interest in the range of 7.25 – 8.5%, with a profit of 721 – 1147, for 5000 lei invested.

Fidelis per lei has an interest rate of 7.25% per year, and with 5000 lei, this would mean a total profit of 1087.5 lei.

Place money in euros: in banks or in government bonds?

In general, many people exchange money for euros. Bank offers for European currency (for 1 year) show us interest rates of 1.5 – 2.25%, which means a profit of 1.17 – 8.11 euros per 1000 euros invested.

If the same amount was at Fidelis, where the interest rate is 3.7%, the profit would be 37 euros.

The government still has an offer with Fidelis, but for 5 years, with an interest rate of 5.8%/year, which would be a total profit of 290 euros (combined for all 5 years). Of course, you will receive 58 euros/year.

I didn’t mention the Tezaur titles at all because the April ones should be announced. We will see what the interest rates and repayment terms are at that time.

* This text is not an investment recommendation, but represents market offers.