The average deposit pays 12.63 %, government bonds about 15 %. The gap in rates looks modest, 2.4 percentage points. Run both on the same sum, and the gap in what reaches you is almost twice as wide.
The setup
Take 100 000 ₴ for one year.
- Deposit: 12.63 % a year - the average rate on new hryvnia deposits of up to a year, NBU data for August 2026. Monthly compounding, 23 % tax.
- Bonds: 100 bonds at 1 000 ₴, a 37.5 ₴ coupon each quarter, maturing in a year. That is 15 % a year - a round coupon to keep the sums simple; at the Ministry of Finance auction on 29.09.2026 one-year bonds were placed at 15.16 %.
The result
| Figure | Deposit at 12.63 % | Bonds at 15 % |
|---|---|---|
| Accrued over the year | 13 208 ₴ | 15 000 ₴ |
| Tax | 3 038 ₴ | 0 ₴ |
| Reaching you | 10 170 ₴ | 15 000 ₴ |
Even with compounding, the deposit accrued less than the bonds and still handed 3 038 ₴ to the state. The bonds handed over nothing: for individuals, income from government bonds is exempt from personal income tax.
On a hundred thousand, that is 4 830 ₴ in the bonds' favour - the bonds paid out almost half as much again.
The tax weighs more than it seems. Even if a bank offered 15.9 % - more than the bond coupon - the deposit, with the same compounding, would leave you only 12 954 ₴.
What deposit rate would level it
Bond coupons are paid out to you and do not compound, so the fair comparison is a deposit that also pays its interest to a card. For such a deposit to deliver 15 000 ₴ net as well, a bank would have to offer 19.48 %.
The rule is simple: to get the "deposit equivalent" of a bond rate, divide it by 0.77. If the deposit compounds monthly instead, a lower rate is enough - about 18.3 %, because interest also accrues on interest already added.
Both bars sit well above the average 12.63 % - a deposit would have to beat the market by 5.6-6.9 points to match the bonds.
A discount adds more
Bonds often sell below par. Buy 105 of them at 950 ₴ instead of 100 at 1 000 ₴: the outlay is almost the same, 99 750 ₴, the coupon is smaller (25 ₴ a quarter), but at maturity the state returns 105 000 ₴ rather than 100 000 ₴.
Profit: 15 750 ₴ instead of 15 000 ₴, and the yield to maturity (YTM) rises to 15.38 %. This is why a bond's return is not "coupon divided by price" - the gap to par is part of what you earn.
Where bonds lose
The comparison cuts both ways.
- The money is locked until maturity. Leaving early means selling on the market at the market price, not at par. A deposit also penalises early withdrawal, but the rules are known up front.
- You need a broker or an intermediary bank, and they charge for buying and holding. Those fees eat into the advantage, especially on small sums.
- No Deposit Guarantee Fund. What stands behind the bonds is the state itself, usually considered safer - but it is a different kind of risk, not the absence of one.
- A higher entry point: one bond costs around 1 000 ₴, and they are easier to buy in a lot.
When to pick which
Bonds win on sums from a few tens of thousands upwards and on terms you are certain you can hold to maturity. A deposit suits you better when the money may be needed suddenly, when the sum is small, or when opening a brokerage account is more trouble than it is worth.
The short version
- Rates cannot be compared head to head: a deposit is taxed, bonds are not.
- Dividing a bond rate by 0.77 gives the equivalent of a deposit that pays out its interest; with compounding the bar is a little lower.
- A discount to par is part of the return, and YTM is what shows it.
- The advantage shrinks with broker fees and disappears if you have to sell early.
Run your own case through the bond calculator and the deposit calculator side by side - on the same sum the difference is hard to miss.