Bank deposits are a way to save your money from the harmful effects of inflation, as well as from thieves who can get under their pillows and steal a deferred stash.
And almost everyone wants to place their contribution at high interest rates, but how to do it?
For various benefits, the bank is ready to pay customers in different ways.
It is no secret that the basic principle of the bank’s functioning is to earn more money than to spend. There are two main ways of bank earnings, these are:
If, for RKO, a bank, in principle, does not need additional financial resources, then in order to lend, it needs to have funds that are issued to customers.
The main source of attracting cash resources to the business is deposits. And even despite different interest rates, they are all similar to each other, but, of course, have slight differences.
Deposit interest rate - a way to attract customers
In order to attract the maximum amount of funds in the shortest possible time, banks offer customers to place a deposit at high interest rates. And naturally, the bulk of people will choose exactly those financial institutions that set the highest rates.
Indeed, if the bank offers more favorable conditions around the corner, then why not go there to arrange a deposit?
Financial advisers can, of course, start talking about the fact that you don’t need to look at the interest rate, but you need to study the bank’s rating, its connections, reliability and financial stability, especially when it comes to foreign currency deposits at a high percentage.
This has its own share of truth and a certain part of the lie. In fact, with these words they try to play on your desire not to stay with your nose and not lose your money.
This, by the way, is a rather effective way, which allows some banks to have a wide customer base, without offering any of them to place a deposit at high interest rates.
Highest deposit rate
Honestly, since 2009, most people have learned not to trust their money with banks, which then burst like bubbles. But little by little, confidence in banks is being restored, although the current currency jumps cause concern. But past foreign currency deposits at a high percentage, of course, can no longer be found.
If you analyze the market for banking services, you can notice certain trends that are firmly entrenched in the Russian Federation. Let's look at them.
Of course, the bank is at odds with the bank, and everyone pursues their personal policy on deposit programs, offering deposits at high interest rates. Despite the possible significant differences in interest rates on deposits, the difference in credit and deposit conditions is basically the same.
That is, the difference between the average rate on deposits and loans at most financial institutions of the Russian Federation is at the same level.
Which deposits are better to choose in order to get the maximum benefit?
Unfortunately, current deposit conditions, even bank deposits at a high interest rate, do not really allow you to make money on your money. This was especially clearly understood by customers of banks who preferred to open deposits in rubles in the hope of a higher rate than in foreign currency.
Due to the fact that the ruble fell sharply against the dollar, the actual capital of depositors depreciated almost twice. Meanwhile, at the end of the term, high-interest bank deposits will bring no more than 13% of the income. This is even if inflation is not taken into account. And those who were able to feel the risk and place a deposit in dollars, on the contrary, won.
Comparing the interest rates on deposits offered by banks in the Russian Federation with the level of European countries, you can see that abroad banks are willing to pay much less for monetary resources. Accordingly, the size of the credit premium is also much lower than under the conditions that are offered on the Russian financial services market.
Criteria to pay attention to when choosing the type of deposit account
In order to determine how it is most profitable to place money in a bank, it is worth considering the following points:
interest rate level;
deposit term;
terms of termination of the contract, obligations of the parties;
reputation of a financial institution;
loyalty programs.
We will understand them in more detail.
Terms of deposit should not be misleading
Finding the highest interest rate is easy to fall victim to fraud. If the level of deposit interest is clearly different from the average market conditions, then this should immediately be alarming.
For example, this may mean that the bank is critically short of cash. Such a position could lead to a bankruptcy institution rapidly bankrupt. After all, raising interest rates on deposits, you automatically need to increase fees and interest on loans. And this already threatens that customers may turn away from the bank.
Looking for deposits at a high interest rate for 6 months? Check out the following information
Often, the highest rates are observed in deposits that are placed for 9-12 months in national currency. In addition, an important factor is the conditions for the removal of interest and the body of the deposit.
If you indicate to the bank that you will not withdraw the deposit ahead of schedule, you can count on offers with more favorable terms for yourself. Although there are various programs to quickly attract the money supply, if the bank does not have enough working capital.
In such cases, financial institutions offer short-term deposits at a high interest rate with a maturity of 1 to 3 months. But they are the hardest to earn. It just looks like they offer you as much as 15%, but this is not for the period of the contract (the period for which the money is placed), but for the whole year. So, considering short-term deposits at a high interest rate, divide the proposed level of interest by the term of the deposit agreement.
It is also worth noting one regularity - the larger the banking institution, the lower the deposit rate it can afford. Yes, on the street you can see how some unknown bank offers 15, 17, or even 20% per annum.
Is it worth believing that your money will return to you? It is very likely that this small financial agent will burst in 3-4 months, and your money will be in someone’s pocket, but not in yours. Even if you want to place deposits for a month at a high interest rate, no one will guarantee you that any such financial institution will return your money.
At what level are deposit offers today?
Rates can be changed daily, as they directly depend on the bank's policy and the operational situation in the financial services market.
If you go to the banks today, then on average they will offer you:
term deposits in rubles - from 6.0% to 10.0%;
for the same deposits, but in US dollars - no more than 3%;
deposits with an unlimited validity period - not more than 2%, if placed in rubles and even lower in foreign currency.
You can compare these figures with the average inflation rate in Russia, which since the beginning of 2015 amounted (according to the official version) to just over 10.5 percent. And given the fact that the ruble has fallen by half, everything looks even worse.
Thus, you cannot really earn on any type of contribution.
Read what you sign
There is a sad fact that out of all clients, no more than 10% read the contract. A distinctive category are lawyers who carefully read every word, trying to find some dirty tricks.
Often, in agreements on deposits in rubles at a high interest rate, as well as in any other, non-transparent conditions can exist that occur with pitfalls. For example, you are interested in a high interest rate, which is several points higher than in other banks.
The contract of such a bank may specify the payment of a commission when placing or withdrawing a deposit. Or, penalties for early withdrawals or something similar may be indicated.