Comparative Analysis of Retail Financial Instruments in Ukraine: Bank Deposits, Domestic Government Bonds, and Investment Fund Certificates

Abstract

Household wealth preservation in Ukraine faces acute pressures from high inflation and ongoing wartime financial volatility. This paper examines whether conventional retail banking products or alternative instruments offer viable capital protection for p rivate individuals. By evaluating retail bank deposits, Domestic Government Bonds (OVDP), and fractional commercial real estate certificates issued by Inzhur REIT, we analyze key trade-offs across nominal and after-tax yields, liquidity access, and statutory guarantee mechanisms. Our calculations demonstrate that nominal yields provide a misleading picture: while 12-month deposits suffer from a combined 23% fi scal burden (personal income tax and military levy), sovereign domestic bonds retain full post -tax coupon yield alongside superior secondary market flexibility. Meanwhile, real estate mutual funds offer an accessible equity route into commercial assets wit h reduced dividend taxation, though they introduce specific non -exchange liquidity and wartime asset -valuation risks.