During martial law and for another three months after its termination, the state guarantees the return of bank deposits in full, with no limit on the amount. This means that the usual rule of distributing money across banks to stay within the deposit guarantee limit currently makes no sense, because there is no limit. After the transition period ends, the guaranteed amount will return to UAH 600,000 per bank, and this is the figure that will need to be taken into account then, not now.

Where Ukrainians Actually Keep Their Money

According to a 2026 survey of people who have savings, the most common instruments remain cash in hryvnias, used by 78% of respondents; cash in foreign currency, used by 69%; bank accounts in hryvnias, used by 67%; bank deposits, used by 59%; and foreign-currency accounts, used by 53%. The total volume of household deposits exceeds UAH 1.7 trillion, with approximately 65.8% held in hryvnias. In other words, most people choose a combination of cash and banking products, which is rational, although not optimal in terms of yield.

How Much the Main Instruments Actually Pay

In 2026, hryvnia deposits offer approximately 13–17.5% per year, depending on the bank and the term. However, the income is taxed at a combined rate of 23%, consisting of 18% personal income tax plus a 5% military levy. At an interest rate of 15%, approximately 11.5% remains after tax. Foreign-currency deposits serve a protective rather than an income-generating function. Dollar deposits offer approximately 0.01–3% per year, while euro deposits offer 0–1%. Government bonds denominated in hryvnias offer approximately 15–17.5% per year, and the key difference is that their income is completely tax-exempt. In other words, at the same nominal interest rate, the net return is approximately one-quarter higher. Dollar-denominated bonds offer approximately 3–4%. Cash generates no return, and even dollars lose approximately 2–3% of their value per year because of inflation in the currency itself.

The Main Conclusion from These Figures

A hryvnia deposit at 15% yields approximately 11.5% after tax. A hryvnia government bond at 16% yields 16% after tax. The difference is approximately 4.5 percentage points per year, or about UAH 4,500 annually on UAH 100,000, and it arises exclusively from taxation. At the same time, the two instruments are currently comparable in terms of reliability because deposits are guaranteed by the state in full, while the bonds are issued by that same state. The practical conclusion: for the portion of your savings that you do not plan to touch over the next year, bonds are more profitable than deposits without additional risk.

Why Have a Deposit, Then?

A bond must either be held until maturity or sold on the market at the current price, which may be lower than the purchase price. An on-demand deposit or savings account allows you to withdraw money at any time, although it offers a lower return of approximately 5–15%. Therefore, the logic behind allocating money is simple: anything you might suddenly need stays in accessible accounts, while anything that will definitely remain untouched for a year or longer goes into bonds.

Why Keep Cash Despite Its Zero Yield?

During prolonged power outages, payment terminals do not work, and cashless payments become unavailable. Therefore, keeping part of your savings in cash is not a sign of conservatism but a functional necessity. A guideline is enough to cover 1–2 weeks of expenses, with some in small-denomination hryvnia banknotes and some in foreign currency. Keeping more cash than this is unprofitable because it inevitably loses value. Bank safe-deposit boxes are available for larger amounts, and their popularity has increased specifically during the war. They address the issue of physical security, but not the problem of depreciation.

Which Currency?

Keep your money in the currency in which you plan to spend it. If you live in Ukraine and spend hryvnias, switching entirely to foreign currency means paying for conversion twice and forgoing the difference in yield. If you have foreign-currency obligations or plan to move abroad or make a large purchase in foreign currency, the foreign-currency share should be larger. A common compromise is approximately half in hryvnias and half in foreign currency, with the hryvnia portion generating returns and the foreign-currency portion providing protection. It is important to understand the cost of this protection. The hryvnia portion generates approximately 16% net through bonds, while the foreign-currency portion generates approximately 3–4%. The difference is the cost of insurance against devaluation.

An Example of How to Allocate Money

I will provide an allocation structure that appears in financial experts' recommendations, specifically as an example to help explain the logic, not as a prescription. For an amount of up to UAH 100,000, the proposed allocation is approximately 50% in bonds, 25% in a deposit, 15% in foreign currency, and 10% in gold. The logic is as follows: most of the money generates the highest net return, a quarter remains accessible, foreign currency provides protection against devaluation, and a small share in metal diversifies the portfolio. It is worth bearing in mind that such recommendations often come from companies that sell the relevant instruments, so the allocation should be adapted to your own circumstances rather than copied.

What You Should Not Do

Do not keep everything in one currency, regardless of which currency it is. Do not keep large amounts of cash at home beyond what is functionally necessary. Do not invest your emergency fund, because its purpose is accessibility, not yield. I wrote about this in a separate article. Do not open a fixed-term deposit for the entire amount, because early withdrawal means losing interest. Do not invest money that you may need within a year in instruments whose prices fluctuate. Do not accept offers with yields significantly above 17% in hryvnias, because this means the risk has simply not been disclosed. Do not distribute money across banks solely to stay within the deposit guarantee limit, because that limit does not currently apply.

What to Check Before Placing Your Money

Check whether the bank is a member of the Deposit Guarantee Fund, because the guarantee applies only to such banks. Check the early-withdrawal terms of the specific deposit. Check whether the 23% tax has been included in the yield calculation, because banks often advertise the rate before taxation. Check the bond's maturity date if you are buying one, because selling it earlier means selling at the market price. Check whether your allocation exceeds your personal comfort level for risk.

What Will Change After the War

This is worth keeping in mind in advance. The full guarantee applies throughout martial law and for another three months after its termination. After that, the guaranteed amount will be UAH 600,000 per bank. In practical terms, when martial law is lifted, amounts exceeding this limit should be distributed across banks, and it is better to do this in advance rather than during the final month.

Summary

During martial law, the usual rule of distributing money across banks does not apply because the state guarantees the return of deposits in full, without any limit on the amount, which fundamentally simplifies the choice. Among the available instruments, hryvnia-denominated government bonds offer the highest net yield because their income is tax-exempt, whereas a deposit at the same nominal interest rate loses approximately one-quarter of its return to the 23% tax. Therefore, a practical strategy looks like this: keep enough cash to cover 1–2 weeks of expenses for situations without electricity, maintain an accessible account for your emergency fund, use bonds for money that will definitely remain untouched for a year or longer, and keep a portion in foreign currency as insurance against devaluation, while understanding that its cost is the yield you forgo.

Sources

The Association of Ukrainian Banks on deposit guarantee conditions as of August 2026; data from the National Bank of Ukraine and the Deposit Guarantee Fund of Ukraine on the volume and structure of household deposits; a survey on savings instruments; market deposit rates and domestic government bond yields. Calculations of net yield after taxation were performed by the editorial team.