In the process of carrying out their activities, banks, in addition to deposits and plastic cards, have financial instruments unknown to the general public. This tool includes a bank certificate.
So, the certificate of a credit institution plays the role of paper, which indicates that finances are placed in the bank, and it is this paper that certifies the authority of its owner. An identity card of the holder is necessary so that the holder of the security receives the sum of its face value and accrued interest. Thus, the certificate is detected by a document that certifies the fact of making a deposit to a credit institution, as well as the competence of the certificate holder to receive the monetary amount of the deposit together with interest.
Bank certificate has two types. These are certificates of deposit and savings. A certificate of deposit is a security that is intended for organizations and companies. It is issued for a period of up to one year. The difference between such concepts as certificates of deposit and savings is that the certificate of deposit is intended for individuals. The release date is also a hallmark. Release term - up to three years. At the same time, certificates of deposit and savings have undoubted similarities in the area of their issuance grounds and placement conditions. In order to issue the type of security in question, you need to obtain permission from the Central Bank of Russia. Papers are issued for a certain amount, but it must be understood that they cannot be a means of payment or settlement for a work or service. The interest accrued on these types of securities is called a coupon. Certificates come in two types. Registered certificates of deposit are transferred to other persons through assignment, and a bearer security certificate - by handing a simple character.
Certificates of deposit and savings are also characterized by the fact that powers can pass from one owner to another. If we are talking about a document of a registered type, the transfer of powers must be made on the side of a security of a negotiable type, in addition, a bilateral agreement between the holder of the previous type and the current owner of the paper. In the event that the transfer of rights is executed by bearer paper, then no problems arise.
In order to receive finances according to the certificate, you must come to a branch or branch of the issuing bank. The Bank has an obligation to the bearer of the document to pay the full amount of the certificate, plus the interest that is indicated in it. It should be added that the interest rate cannot be changed in a period equal to the circulation of the certificate. In addition, it is appropriate to indicate another circumstance regarding the security under the name "certificate". When issuing it, the holder retains the authority to present the certificate to the bank ahead of schedule for payment. In this case, the amount that has been paid will be considered by the credit institution by analogy with the conditions of the demand deposit, thus, the interest on the certificate is substantially lost, which could have been if it had not been for the early payment. As a general rule, a savings certificate has an urgent look and is issued for a period of three months, six months, and also has ruble currency.
Despite the fact that a bank certificate is a fairly young phenomenon on the securities market in the Russian Federation, nevertheless, it has gained mass popularity. It's all about the convenience that is given to paper owners. It lies in the fact that the certificate combines the properties of a bank deposit and a security. Of course, certain points have a place to be, when it comes to differences in these financial instruments. When buying the certificate discussed above, each individual must understand that he is the owner of a security, it has value and can be used at the discretion of its holder. The interest rate on the certificate is fixed, it is paid at the time of repayment of the document. The certificate is subject to the effects of civil relations and contract law, that is, inheritance, exchange or gift agreements, as well as collateral.