A deposit (bank deposit) is money that you place with a bank on set terms, and the bank pays interest for it.
In plain words
Term deposits have a fixed period and rate, and withdrawing early usually forfeits the interest. A demand deposit lets you take the money out at any time, but the rate is lower. Interest on a deposit is passive income: 18% personal income tax and a 5% military levy are withheld from it (the bank does this itself, under the Tax Code version of 17 September 2026). Individuals’ deposits at banks that are members of the Deposit Guarantee Fund are protected up to the guaranteed limit (see “Deposit guarantee”).
Sources
- Law of Ukraine “On the Deposit Guarantee System for Individuals” No. 4452-VI of 23 February 2012 — Art. 2 (item 3) (version of 4 October 2026). Checked 14.10.2026.
- Tax Code of Ukraine No. 2755-VI of 2 December 2010 — Arts. 14.1.268, 167.5.1 (version of 17 September 2026). Checked 14.10.2026.
Example. You place UAH 100,000 for a year at 12% a year: UAH 12,000 is accrued, and after 18% personal income tax and the 5% military levy (UAH 2,760 in total) you receive UAH 9,240 (an illustrative example).