Bank deposits vs bonds in Uzbekistan: how to compare

For many savers in Uzbekistan the first choice is simple: keep money in a bank deposit, or buy a bond. Both pay interest, both have a date when the money comes back, and both are often described as the safe part of a portfolio. They are not the same thing, though. They differ in how the rate is set, what protects your money, how tax applies and how easily you can get out early. This guide walks through those differences so you can compare the two on equal terms.

What you are actually buying

A bank deposit is a contract with a bank. You place money for an agreed term, the bank pays an agreed rate, and at the end it returns your money. The contract also sets what happens if you withdraw early, whether interest is added to the balance (capitalisation) and whether you can top up.

A bond is a loan you make to an issuer, which may be a company, a bank or the state. The issuer promises to pay coupons and to repay the face value on the maturity date. Once issued, the bond can be bought and sold, for example on the Tashkent Stock Exchange (UZSE), and its market price moves every day it trades. The basics of coupons and yields are explained in bond yield, coupon and price.

Comparing the rates fairly

The headline numbers are not directly comparable. A deposit shows one annual rate. A bond shows a coupon rate, but what you earn depends on the price you pay, which is why investors look at yield to maturity. Before comparing, make sure you have:

• the same term, or as close as you can get;
• the same currency, because rates in soʻm and in dollars reflect different risks;
• the rate after tax;
• the effect of fees, such as broker and exchange commissions on the bond purchase.

Finmind's deposits page lists deposit products taken from the banks' own pages, with the rate as published, the minimum amount, capitalisation and early-withdrawal terms, and the source and as-of date for each row. For bonds, the UZSE bonds page shows each listed bond's terms and last closing price, and the yield curve page shows the Central Bank of Uzbekistan's government-bond yields by term, which is a useful benchmark for what the market pays for lending money for one, two or five years.

What protects your money

Deposits: the state guarantee system

Deposits in Uzbek banks are covered by the Law "On guarantees for the protection of deposits in banks" No. ZRU-1031 of 18 February 2025, published on lex.uz and in force since its publication on 19 February 2025. As of 26 September 2026 its main rules are:

• What is covered (Article 25): deposits of individuals, including individual entrepreneurs, and of legal entities, in soʻm and in foreign currency, together with accrued but unpaid interest. Some deposits are excluded, for example those of banks and other financial organisations, of state bodies and of persons related to the bank.
• How much (Article 26): compensation per depositor in one bank is the full balance if it is 200 million soʻm or less, and 200 million soʻm if the balance is larger. If you hold several deposits in one bank, in any currency, the total compensation is still capped at that amount.
• Who pays: the Deposit Guarantee Agency, which the law set up as successor to the earlier guarantee fund.
• Older deposits: the law's transitional provisions say the new cap does not apply to deposits placed before it came into force, except deposits that were later increased above the cap and extended, and deposits repayable on demand.

The 2002 law that it replaced is marked on lex.uz as no longer in force from 19 February 2025. Because the cap is per bank, a saver with more than 200 million soʻm can spread deposits across banks to keep each one within the guaranteed amount.

Bonds: the issuer's ability to pay

A bond is not a deposit, so the deposit guarantee does not cover it, even when the issuer is a bank. Your protection is the issuer's financial strength and the bond's terms. That is why it is worth reading the issuer's reports on openinfo.uz before buying a corporate bond. Government securities carry the credit of the state, which is a different and usually lower risk than a company's.

How tax changes the comparison

Tax can matter more than a small difference in rates. Under the Tax Code on lex.uz, as of 26 September 2026:

• Deposit interest earned by individuals is not taxed: Article 378, item 13 lists interest and winnings on bank deposits among income that is exempt.
• Government securities: the same Article 378, items 12 and 13, exempts interest and income on government securities of Uzbekistan for individuals.
• Corporate bond coupons are interest income taxed at 5% for resident individuals under Article 381, withheld by the issuer as tax agent.

A worked example with illustrative numbers. Suppose a one-year deposit pays 17% and a corporate bond bought at face value pays an 18% coupon with one year left. For a resident individual:

• Deposit: 17% with no tax, so 17% net.
• Corporate bond: 18% less 5% tax on the coupon, so 17.1% net, before commissions.

The gap that looked like one percentage point shrinks to about 0.1 point, and commissions on the bond purchase can close it entirely. The full set of rates, including those for non-residents, is in our guide to tax on dividends and bond coupons.

Getting your money out early

This is often the deciding difference.

• Deposit: early withdrawal is governed by the contract. Many deposits allow it but recalculate interest at a lower rate, and some term deposits do not allow it before maturity at all. Read the early-withdrawal clause before you sign.
• Bond: you can only get out early by selling to another investor. On the UZSE, many bonds trade rarely. You may not find a buyer quickly, or only at a lower price. If interest rates have risen since you bought, the price will also be lower, as explained in our guide to interest rates and the CBU policy rate.

If you are fairly sure you will not need the money before maturity, the liquidity difference matters less. If you might need it, a deposit with flexible terms, or your emergency fund, is the better home for that part of your savings.

A simple way to decide

1. Set aside your emergency fund first, in something you can withdraw quickly.
2. Match the term to when you will need the money.
3. Compare net rates in the same currency, after tax and fees.
4. Check the protection: the deposit guarantee limit per bank, or the issuer's reports for a bond.
5. Consider splitting between the two rather than choosing only one.

This article is for education only and is not investment advice. Investing in securities involves risk, including the loss of money you invest.