While bank deposits in Ukraine offer 13–16% annually and then deduct 23% in taxes (18% personal income tax + 5% military levy), domestic government bonds (OVDP) pay up to 16.15% per year — entirely tax-free. On UAH 300,000 invested for one year, that translates into roughly UAH 7,000 more in your pocket compared with an equivalent-rate bank deposit after tax.
Since the start of 2026, Ukraine's Ministry of Finance has raised over UAH 201 billion through OVDP auctions to finance state needs, including national defence. Demand from private investors is rising: Ukrainians have already purchased military OVDP worth more than UAH 30 billion through the Diia app. Here is everything you need to know before buying your first bond.
OVDP (Облігації внутрішньої державної позики) are debt securities issued by the Ministry of Finance. When you buy a bond, you lend money to the state for a set period. The state commits to returning the full principal on the maturity date and to paying periodic interest (coupons) along the way — or embedding the return in the difference between purchase price and face value.
The key difference from a deposit: the guarantor is the state itself, not the Deposit Guarantee Fund. The DGF covers up to UAH 600,000 per depositor per bank; OVDP carry no such ceiling — repayment is backed by all state obligations. That said, OVDP are not insured instruments in the classic sense: in the event of a sovereign default, the DGF would not step in. For Ukraine at its current credit rating, this risk is real but, as experience during the full-scale war has shown, all domestic obligations have been met on time without exception.
Since 2022 a special category called military OVDP exists. Structurally these are identical to regular government bonds, but the proceeds go directly into a dedicated defence fund. They are also nicknamed "city-name bonds" — each series bears the name of a temporarily occupied Ukrainian city: Bakhmut, Vuhledar, Skadovsk, Kerch and others.
For the investor there is virtually no practical difference: the same risk profile, same yields, same purchase and redemption process. The only distinction is symbolic: buying "Bakhmut" or "Vuhledar" means you are literally funding the armed forces with your own hryvnias.
At the Ministry of Finance auction held on 23 June 2026, OVDP worth UAH 5.91 billion were placed at the following rates:
For comparison: the average hryvnia bank deposit rate for 12 months in early July 2026 is 13–16% before tax. After deducting 23%, effective returns drop to roughly 10–12.3%. OVDP at a comparable or higher nominal rate are entirely exempt from personal income tax and the military levy, per Article 170.2 of Ukraine's Tax Code.
There is also a foreign-currency option for those worried about hryvnia depreciation: the Ministry of Finance regularly auctions USD-denominated and EUR-denominated OVDP, typically yielding 5–5.5% and 4–4.5% respectively. Access requires a securities account held in the relevant currency.
Three years ago, buying government bonds required opening a securities account with a broker, visiting a branch and signing a stack of forms. Today the process is far simpler.
The Diia government app allows you to buy military OVDP directly from any Ukrainian bank card in minutes:
Since 2 April 2026 a commission of 0.2% of the transaction amount applies to purchases via Diia. On UAH 10,000 that is UAH 20 — significantly less than most broker commissions. Note that Diia only offers specific named military series; for the full auction range you need a securities account.
PrivatBank (Privat24 → "Bonds") and monobank (Savings Jar → "Military Bonds") both have built-in OVDP sections. The minimum is UAH 1,000, fees are the same as via Diia, and the interface is familiar to existing customers of those banks.
To participate directly in Ministry of Finance auctions or trade OVDP on the secondary PFTS market, open a securities account with a licensed broker (e.g., Kinto, Dragon Capital, ICU). Broker commissions are higher — typically 0.1–0.5% per transaction — but the range of available instruments is far wider, including foreign-currency series and bonds with varied maturities.
To make the difference concrete rather than abstract, consider UAH 200,000 for 12 months:
The difference is UAH 7,200 in favour of OVDP, for an identical term and a comparable risk level. Scale that to UAH 500,000 or several years running and the gap becomes significant.
The downside: unlike a deposit, OVDP are not covered by the Deposit Guarantee Fund. For large sums above UAH 600,000 this is actually an advantage — the DGF cap does not apply, and the full amount is backed by state obligations rather than capped insurance.
To compare current deposit rates before making a decision, see the up-to-date table of bank deposits on BankSorter. For keeping funds between transactions, a convenient savings account pairs well with OVDP.
OVDP can be sold on the secondary market before maturity. However, the market price depends on current interest rate levels. If rates have risen since your purchase, selling without a price discount may be difficult. For bonds bought via Diia or a mobile bank, secondary sale is usually possible through the same app, but liquidity on specific series can be thin. Treat OVDP as a buy-and-hold instrument. If there is a realistic chance you will need the money before maturity, keep part of your funds in a savings account.
Most hryvnia OVDP are coupon bonds: interest is calculated and paid every 3 or 6 months to your designated account. Some series are discount bonds: you buy below face value and receive the full nominal at redemption. Both produce the same total return, but the timing of cash flows differs. Always check the payment schedule before purchasing.
Buying USD- or EUR-denominated OVDP as a Ukrainian resident requires a foreign-currency securities account and may be subject to NBU currency control restrictions. Consult your bank or broker before committing foreign currency.
A yield of up to 16.15% for three years with zero tax is not a marketing hook — it is a figure from an official Ministry of Finance auction. The best equivalent bank deposit, after tax, delivers 11–13%. OVDP win on net return under equal conditions.
The instrument suits anyone with free hryvnias available for six months or more, who wants to avoid unnecessary risk and earn more than a current account. Buying via Diia takes minutes and requires no financial expertise — just a basic understanding that you are lending money to the state and receiving it back with interest on the maturity date.
Compare bank deposits with current rates on BankSorter — so you can make an informed decision on whether OVDP, a deposit, or a combination of both is the right choice for your situation.
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