Comparison
Unit trusts vs fixed deposits in Uganda: where do savings go?
Updated 2 Nov 2026 · 2 min read · By Capital & Context editorial team
If your savings sit in a current account, two common next steps are a fixed deposit at a bank or a unit trust such as a money market fund. Both are low risk. They differ in how much certainty and flexibility you get.
How do they compare side by side?
- Return. A fixed deposit pays an agreed rate for the term. Banks publish rates up to up to 15.00% (dfcu Bank, before tax, BoU bank rate sheet, 1 Apr 2026), and the typical top rate is about 12.38% (typical top fixed deposit rate, before tax, BoU bank rate sheet, 1 Apr 2026). A money market fund pays a return that moves; the highest UGX fund we track pays 12.55% (Old Mutual Umbrella Trust Fund, Old Mutual only, before tax, fund manager, 20 Oct 2026).
- Access. A fixed deposit locks your money in, and leaving early usually costs interest. Most money market funds pay withdrawals within a few working days.
- Protection. Bank deposits are protected by the Deposit Protection Fund up to UGX 10,000,000 (per person, per bank, Deposit Protection Fund of Uganda, checked 2 Nov 2026). Unit trusts are regulated by the Capital Markets Authority and their assets are held by a custodian, but they have no deposit protection.
- Starting amount. Fixed deposits need from UGX 100,000 (varies by bank, BoU bank rate sheet, 1 Apr 2026). Many funds accept small amounts and regular top-ups.
Which suits which goal?
- Emergency fund: a money market fund is commonly used, because you can reach it quickly.
- A known expense on a known date, like school fees next year: a fixed deposit that matures just before you need the money.
- Saving every month: a money market fund, since topping up a fixed deposit usually means opening a new one.
- Large sums: ask banks for a negotiated rate and compare it with fund yields. Many people split money between both.
What about tax and fees?
Compare what you keep, not the headline rate. Tax on bank interest is being confirmed (we haven't confirmed how interest on bank savings and fixed deposits are taxed, so we show it before tax), and tax on unit trust profits is being confirmed (we haven't confirmed how profits from unit trusts and money market funds are taxed, so we show it before tax). Funds also take a management fee. Our unit trust vs fixed deposit calculator grows the same plan both ways, and you can type in a rate a bank has offered you.
Compare every bank on our fixed deposit rates page, or read what a money market fund is first. For money you won't need for a year, treasury bills are another common choice.