Is it more profitable to invest in dividend-paying stocks or a bank deposit?
If you're wondering where to invest your money, you probably already understand that your savings will be quickly devalued by inflation.
Moreover, it is desirable that these savings be kept in hard currency, since high interest rates on deposits in national currencies are easily offset by losses from a depreciation of the exchange rate.
The simplest investment option today is still a bank deposit, but a reasonable question arises as to why large foreign investors prefer to invest their capital in company shares.
Let's try to evaluate what will bring more profit: shares or a bank deposit, and compare both of these investment options.
Interest rates on dollar and euro deposits in different countries
The choice of currency deposits in banks today is quite limited; most banks, including foreign ones, offer deposits in dollars or euros.
At the same time, interest rates on deposits in dollars or euros leave much to be desired; the maximum you can get depends on the country of placement:
| Country | Interest on deposits (USD) | Interest on deposits (EUR) |
|---|---|---|
| Kazakhstan | 2,5% | 1,0% |
| Ukraine | 3,0% | 2,0% |
| Belarus | 2,0% | 0,4% |
| Moldova | 5,0% | 2,5% |
| Poland | 2,0% | 0,5% |
| Germany | 2,0% | 0,4% |
| Czech Republic | 1,5% | 0,3% |
| USA | 4,5% | 0,2% |
The table shows the maximum deposit rates in different countries, but you should keep in mind that you may not be satisfied with the bank offering the highest interest rate.
As a rule, the most popular and most reliable banks offer the worst deposit terms, and those that lure clients with high rates are often not known for their reliability.
Therefore, a deposit in euros is not worth considering at all today; the maximum you can get from a deposit in a reliable bank is 0.2-0.3% per annum.
Interest rates on dollar deposits are slightly higher, and it is quite possible to find a good bank with a rate of around 3% per annum.
Dividend amount on shares in US dollars
Finding stocks with good dividends is also not easy; you need to guess that the company not only pays dividends, but also has positive prospects for growth in the value of the security.
But if you have the desire, the task is quite solvable, because now it is quite possible to find almost any information about the company you like.
Here's an example of high dividend stocks in 2025:
| № | Industry | Company | Dividends (%) |
|---|---|---|---|
| 1 | Biotechnology | SIGA Technologies | 17,1% |
| 2 | Shipping | Golden Ocean | 12,81% |
| 3 | Banking sector | Nordea Bank | 7,93% |
| 4 | Pharmaceuticals | Pfizer | 6,74% |
| 5 | Telecommunications | Verizon | 6,61% |
| 6 | Financial services | Franklin Resources | 6,23% |
| 7 | Food industry | Kraft Heinz | 5,53% |
| 8 | Telecommunications | AT&T | 4,29% |
The table lists eight companies that regularly pay dividends on their shares. Furthermore, all companies showed positive revenue and profit results last year. This gives hope for high dividends in the future.
At the moment, a portfolio of 8 stocks will bring in about 8.5% per annum, which is significantly higher than the likely 3% per annum on US dollar deposits.
You can buy securities from stock brokers or in the Revolut bank app .
Conclusion: Shares or a bank deposit
From the data above, it's clear that dividend-paying stocks are much more profitable than a hard currency deposit. However, the risks are also worth mentioning, as even the most reliable stocks can fall in price.
But it's not as bad as it seems. If you invest for the long term, the value of fallen shares is likely to recover, as stock markets grow over the long term.
In addition, the following actions will help reduce risks:
- diversification – buying shares of companies from different economic sectors. It's very rare for the entire market to fall; more often, only one sector declines while another rises.
- Asset diversification - buying gold will help offset losses when the value of purchased shares falls, since in most cases gold begins to rise in price when shares fall.
