UAH or Foreign-Currency Deposit in 2026: Which Wins at What Exchange Rate

Opening a deposit is straightforward. Deciding which currency is harder: the difference between the right and wrong choice can amount to several thousand hryvnias on every UAH 100,000. This article provides a formula, one complete worked example, and explains three costs that bank websites usually omit.

# How to calculate the break-even point

The break-even exchange rate is the minimum annual depreciation of the hryvnia at which a dollar deposit produces the same number of hryvnias as a UAH deposit. If the actual depreciation is smaller, the UAH deposit wins; if larger, the dollar deposit wins.

Formula:

Break-even_depreciation = (1 + r_UAH × 0.77) / (1 + r_USD × 0.77) − 1

Here r_UAH is the annual rate of the UAH deposit, r_USD is the annual rate of the dollar deposit, and 0.77 is the share remaining after the 23% tax (1 − 0.23 = 0.77). The result is the percentage by which the dollar-to-hryvnia rate must rise over the year for both deposits to break even.

Example. Consider a notional scenario with rounded rates to illustrate the logic. Suppose the bank offers 14% per annum in hryvnia and 4% in dollars.

Net UAH rate: 14% × 0.77 = 10.78%
Net dollar rate: 4% × 0.77 = 3.08%

Break-even_depreciation = (1 + 0.1078) / (1 + 0.0308) − 1 = 1.1078 / 1.0308 − 1 ≈ 0.0747, i.e. approximately 7.5%.

If over the year the dollar rate rises from the notional UAH 45.50 (the NBU rate on 11.11.2026) to UAH 48.91 or above, the dollar deposit overtakes the UAH one. If the rate stays below that level, the UAH deposit is more profitable.

To enter your own rates and get a precise figure including reinvestment, use the deposit calculator.

Note: the formula covers rates and tax only. It does not include the conversion spread or the potential loss of interest on early withdrawal. Both factors shift the break-even point upward — making the dollar deposit even harder to justify.

# Three costs that eat into the advantage of a foreign-currency deposit

# 1. The buy-and-sell spread on conversion

When you buy dollars to open a deposit, the bank sells them to you above the NBU rate. When you later convert the dollars back to hryvnias, the bank buys them at below the NBU rate. The gap between the buying and selling rates is the spread. It is not shown as a separate fee, but it genuinely reduces the deposit’s yield.

The size of the spread depends on the bank, the exchange channel (branch counter, mobile app, bureau de change) and the amount. Before opening a deposit, check the bank’s exchange rate on the day and compare it with the NBU rate — the difference is your hidden entry cost.

Conversion cost example. Suppose the NBU rate on the day of opening is UAH 45.50 per dollar, and the bank sells dollars at UAH 46.00. To place USD 2,000 on deposit, you will spend UAH 92,000 instead of UAH 91,000 at the NBU rate. That extra UAH 1,000 is a cost incurred before the deposit has even started working.

If you already hold dollars in cash or in a foreign-currency account, this cost does not apply. But if you are converting hryvnias — both on the way in and on the way out — count both spreads.

# 2. Early withdrawal

Most fixed-term deposits — UAH and foreign-currency alike — carry a penalty for early closure. The most common arrangement: the bank pays interest at the demand-deposit rate rather than the term rate. The gap between the two can be significant.

If you are not certain the funds will not be needed before maturity, consider deposits with partial withdrawal rights or shorter terms (3–6 months) rather than annual ones. Early-withdrawal terms are set out in the contract: read them before signing, not after.

For a foreign-currency deposit, this problem is compounded: you forfeit interest and pay the spread twice — once going in, once coming out.

# 3. The currency-purchase limit

NBU Resolution No. 18 limits cashless foreign-currency purchases by individuals to UAH 200,000 per calendar month (from 11 August 2026). If you wish to deposit an amount that exceeds this limit at the prevailing exchange rate, you will need to spread the purchases over several months or find another route. Cash purchases at a bank counter are subject to separate operational limits set by each bank. Check the current state of restrictions on the NBU website.

# Deposit guarantee: how it differs for UAH and foreign currency

The Deposit Guarantee Fund (DGF — Fond Harantuvannya Vkladiv Fizychnykh Osib, FHVFO) guarantees the full deposit amount during martial law and for three months after it ends — with no cap on the sum. This applies to both UAH and foreign-currency deposits held at banks that are DGF members. The list of member banks is available on the DGF website.

There is one practical difference in how payouts work. If a deposit is in foreign currency and the bank is declared insolvent, compensation may be paid in hryvnias at the official NBU rate on the date of payment. Confirm this point on the DGF website or directly with the Fund.

A further practical consideration: deposits at the same bank are aggregated. If you have both a UAH and a foreign-currency deposit at one bank, the guarantee covers the combined total. Spreading funds across several DGF member banks gives you a separate guarantee at each.

# Who should consider a foreign-currency deposit — and who should not

A foreign-currency deposit makes sense if you:

• already hold savings in foreign currency and do not want to convert twice;
• anticipate a need for foreign currency (payments abroad, education, a purchase);
• are confident the funds will not be needed before maturity.

A foreign-currency deposit is less advantageous if you:

• are converting hryvnias specifically for the deposit: the spread eats into the advantage;
• are planning a short term of up to 3 months: the rate differential and the two-way spread are rarely offset even by moderate depreciation;
• are unsure about timing: early closure of a foreign-currency deposit is costlier.

If your situation does not fit neatly into either category, calculate the break-even point using your bank’s specific rates.

# Which rates to treat as realistic

The official NBU key policy rate from 18 September 2026 is 16%. It sets the general level, but deposit rates at individual banks may be higher or lower depending on term, amount and conditions. A comparison of rates across 21 banks using current data is available on the deposit rates 2026 page.

Before opening a deposit, obtain a specific offer from the bank and check the rate on the product page itself — not in general advertising. Some banks advertise “up to X%”, with the conditions for the maximum rate buried in the small print (minimum amount, capitalisation, payroll project requirement).

# See also

• Deposit calculator — calculate your total with rate, term and 23% tax factored in
• Deposit rates 2026: comparison of 21 banks
• Bank deposits in Ukraine 2026: UAH/USD/EUR rates, how to choose
• Dollar or euro for savings in Ukraine in 2026