The economic crisis in the country has passed, financial life is gradually improving. Now you can save money. How to save up for a dream? A proven and reliable way is to open a deposit. For comparison, let's take the savings account, which is not so popular because of its novelty. What are these financial instruments? What is the difference from a deposit account? How to use them correctly and to whom are they more suitable?
Contribution
This method of generating income is safe and affordable for everyone. The yield on deposits over the past two years has decreased by half and varies in the range of 6–7%. Compared to stocks and bonds, income is low. But the risk of losing money and not receiving legal interest from investors is much lower, and even tends to zero.
A deposit (or deposit) is a currency or ruble account that is opened in favor of an individual or legal entity for a period fixed in the contract and at a specified percentage. On deposit, the investor places the funds and stores according to the agreed term. A client who has entrusted his money to the bank can withdraw and withdraw it at any time. The terms of termination of the deposit agreement are agreed in advance, and the client of the bank is notified about them.
Types of Deposits
Each client, placing money on a deposit, is guided by personal needs. According to the preferences of customers and the capabilities of banks, deposits are divided into several types. Categories depend on various factors.
Placement period
- Poste restante. The client can take this deposit from the bank at any time when he pleases. The interest rate on such deposits is minimal and amounts to 0.5% per annum. Interest is what distinguishes a contribution from a savings account. Accommodation conditions vary greatly. Typically, the amount should not be less than the minimum allowed for the balance of the deposit, so that interest is accrued. The contract is drawn up without a limitation period, and the bank has the right to change the interest unilaterally. Often used in transactions or in transit of large amounts. The probability of a sudden demand for funds is assumed. Therefore, access to them is always open.
- Urgent deposit. When placing money on this type of deposit, the term and interest are discussed in advance and fixed in the contract in advance. Terms for deposits range from one month to five years. If desired, the client has the opportunity to withdraw funds, but, as a rule, this is not profitable. The investor loses the entire percentage, or some part of it. The purpose of the placement will not be achieved.
Interest Calculation Method
- At the end of the term. This method is used more often than others. The deposit rate is included in the agreement; during the placement period it does not change. Interest is paid at the end of the term.
- Capitalization. Implies interest accrual every month or quarter. The amount of accrued interest is summed up with the cash assets of the existing deposit. The interest is again accrued already on the increased amount. This happens every month (or quarter). With the same interest on deposits, with or without capitalization, the amount of accrued interest is greater on deposits with capitalization. This is not beneficial for the bank, so the interest on deposits with capitalization is set less. The difference in the end is absent altogether or insignificant. When the deposit is extended for a new term in the automatic mode, capitalization also occurs automatically.
Placement Currency
- Ruble deposit. It is placed in rubles.
- Currency deposit. It is placed in the currency of your choice. Most often use the dollar and the euro. The rates on these deposits are currently extremely small. On average, it is 0.01% for the euro and a little more for the dollar.
- Multicurrency. This deposit opens standardly in three currencies: rubles, dollars and euros. If desired, the client can independently transfer money between accounts inside the deposit. This is how those who earn money on the difference in exchange rates act.
The order of storage of funds
The main difference between the contribution from the savings account is the rules for storing money in the client’s account. A fixed-term deposit has additional conditions governing the use of funds in the storage process.
- Deposit without the possibility of replenishment and withdrawal. For such a deposit, the percentage is usually the highest. There are both with and without capitalization.
- Deposit with the possibility of replenishment. Used to accumulate cash. It is impossible to withdraw money partially from such a deposit.
- Deposit with the possibility of withdrawal and replenishment. Such a deposit is used to store large amounts, but without implying accumulation. The interest on them is higher than if you store money on a debit card, but there is an irreplaceable balance. This is the amount that should remain on the deposit. As a rule, when opening a deposit, the client can choose the amount of the minimum balance.
- Specialized. Limited offers for VIP clients, employees of partner enterprises. Banks create seasonal offers to attract customers, which are valid once and are no longer introduced.
Savings account
With the development of the financial system and the advent of a stable economy, cash has ceased to be the only safe way to store it. If the deposit and debit card are already tightly used, the savings account is little known. Based on the name, it is obvious that this account involves the receipt of income from cash balances on it. Used in most cases by plastic card holders. What is the difference between a savings account and a deposit?
Why do customers need a savings account?
Usually this banking product comes with a range of services when opening a debit card. The benefit to the client is obvious, since the interest rate on the savings account is higher than the interest on the balance on a plastic card. In practice, there is no interest accrual on the balance on a salary card or a simple debit card. If the client has a salary, savings account or contribution is possible at an increased interest rate.
Having a savings account disciplines a customer in spending. Using this financial instrument, the client leaves a balance on the card for everyday use, and sends the surplus to the savings account.
A savings account makes it possible to store large amounts not on the card for security purposes. Nowadays, fraudulent actions with cards have become widespread. The separation of the sums on the card has already saved many people from losing money.
In case of urgent need, the client can use the Internet bank or mobile application and withdraw the required amount from the account or transfer to another bank.
How to use an account without a card?
What is the difference between a savings account and a deposit? The point of using this type of account without a card disappears. After all, it is included in the list of services when opening a debit card.
Nevertheless, there is such an opportunity in large banks. Money from the savings account can be withdrawn both in cash and non-cash. Some financial institutions limit the amount of funds available and available for withdrawal without using a debit card. If there is a need to withdraw money from the savings account directly, it is better to check in advance about the availability of a commission.
Which is better, savings account or contribution?
Currently, banks are actively promoting a new financial product. Often, interest rates on savings accounts are higher than on deposits. The percentage depends on the package of services to which such an account is connected. It also affects the storage period of funds and the amount of the account balance. What is the difference between a savings account or a contribution? The main advantage of the first is the absence of a regulated period of use. The amount of funds required for storage is also not established. The account holder independently decides when and how much to withdraw from the account. However, this fact may affect the interest rate.
A deposit that gives the right to withdraw and deposit cash to an account is rare in banks. This type of deposit involves a lot of restrictions that interfere with the owner. Limitations on the amount of withdrawal of funds or the term of placement. In this regard, the savings account is a more flexible financial instrument. The client has the right to deposit and withdraw money countless times, while receiving interest on the average monthly balance.
Plus, in placing a deposit - a fixed percentage at the time the deposit is opened. It is prescribed in the contract, therefore, unilaterally, the bank is not entitled to change it. A self-respecting organization adheres to this principle rigorously. On the savings account, the percentage is not fixed. It tends to change during the period of use of the savings account. It depends on the refinancing rate and the financial policy of the bank. This percentage difference explains what is more profitable, contribution or savings account.
Recommendations
When choosing financial instruments for storing clients' money, financial consultants start from needs. Solving the problem of what to choose, a savings account or a contribution, decide what is required to save money for? A common reason to keep money with the older generation is "so that nothing happens and the percentage drops." In this case, a reliable financial instrument is a term deposit. By placing money for a short period and at a fixed percentage, older people can be sure of their safety and profit. Do not forget about the insurance amount. The Deposit Insurance Agency protects cash in the amount of 1,400,000 rubles. This amount is calculated per person in one financial institution. Moreover, a married couple who are officially married, is also considered as one individual. Therefore, husband and wife in the same bank two amounts in excess of 1,400,000 for two, it is better not to place.
If the goal is to save money for a home or a costly purchase, the best tool is a time deposit with the possibility of replenishment. So you save money from your own encroachments, as a result, it will be easier to accumulate the necessary amount. The interest on this type of deposit is usually higher than on the savings account.
And if there is no purpose of accumulation, and the funds are used continuously - the savings account is your way out. This financial instrument is flexible and modern, provides access to money at a convenient time and the balance will not lie idle. The interest on the savings account is accrued monthly and capitalized with the amount on the balance.
Finally
The formation of the client’s financial portfolio is best entrusted to professionals. If there are concerns about their competence or a desire to sort out this issue on your own, remember that it is better to distribute funds in different sources of income. Send part to the savings account, distribute part to deposits, place something for a long time in life insurance or investment. At the same time, figure out in advance what is the difference between a deposit and a savings account, or for stocks and bonds. Money will not be at risk in one place. A good specialist will study all the offers of banks to find the most beneficial for the client.