Armenian banks offer deposits in Armenian drams (AMD) and in foreign currencies, mainly US dollars (USD) and euros (EUR). The choice affects the interest rate you get, the risk of exchange-rate changes, and how the deposit guarantee applies. Here is what to consider.
Interest rates: AMD vs FX
Historically, AMD deposit rates in Armenia have often been higher than USD or EUR rates. That is because the central bank’s policy rate and local currency conditions influence AMD rates, while FX rates are more aligned with global conditions and the bank’s cost of foreign funding. So if you are willing to hold local currency, you may earn more interest in AMD—but you take on exchange-rate risk if you later need to convert to another currency.
Exchange-rate risk
If you save in AMD and the dram weakens against the dollar or euro, the purchasing power of your savings in terms of foreign goods or travel can fall. Saving in USD or EUR can protect you against dram depreciation if your future expenses are in those currencies. There is no free lunch: FX deposits usually offer lower interest, so the trade-off is stability vs return.
Tax and early withdrawal
Interest on both AMD and FX deposits is subject to the 10% income tax in Armenia, withheld at source. Early withdrawal penalties may differ by currency; the Saving.am calculator uses typical rates (e.g. 2% for AMD, 1.5% for USD/EUR) for illustration. Your bank’s contract will state the exact penalty. Use the calculator to compare scenarios in AMD, USD, and EUR and see final balance and net interest for each.
Your choice should depend on your income, expenses, and risk tolerance. For current rates and product details, always check with your bank.