Dominicans Are Saving More, but Their Money Is Losing Buying Power

Dominican bank savings top RD$ 3.5 trillion, but after inflation and taxes, many savers end up with less than they started with.

On the occasion of World Savings Day, the Superintendency of Banks published its report "Savings Trends in the Dominican Republic." According to its figures as of June 2026, deposits in the financial system reached RD$ 3.5 trillion, RD$ 480,807 million more than a year earlier, a 15.9% increase. Dominicans are saving more.

But a rising number does not show what that money earns. According to the same report, the average rate banks paid on peso deposits was 4.23%, and the overall average, including dollar deposits, was 3.50%, lower than a year earlier. Meanwhile, the Central Bank reports year-over-year inflation of 5.12% as of September 2026.

For example, RD$ 100,000 in an account paying 4.23% generates RD$ 4,230 a year. After the 10% income tax withholding, RD$ 3,807 remains. But what cost RD$ 100,000 in January would cost RD$ 105,120 in December. The balance rises, but purchasing power falls. Also, that 4.23% includes certificates, and a regular savings account usually pays much less.

One option is to divide money by purpose. An emergency fund of three to six months of expenses can stay in a savings account with immediate access, even if it earns little. Money with a deadline, such as a home down payment or a child's tuition, can go into financial certificates. According to the Central Bank, the average passive rate of multiple banks was 6.97% in September 2026. Long-term money, five years or more, can be invested in funds or bonds through brokerage firms supervised by the Superintendency of the Securities Market; it earns more but fluctuates.

The report also shows that 29.7% of deposits are in foreign currency, about US$ 17,515 million, at an average rate of 1.77%. This year the peso appreciated about 4% through the end of October, according to the Central Bank, reducing the peso value of those savings. The dollar can help people with expenses or debts in that currency, but it does not guarantee gains.

Warning signs include keeping savings in the same account where payroll is deposited, which makes it easy to spend, and letting certificates renew automatically for years without reviewing the rate.