Banking services are used by almost all legal entities, as well as many ordinary people. Sooner or later they have a question: "What is a deposit account in a bank?" The answer to it is quite simple: this is such a current account in a bank on which the client stores his money, and the bank, in turn, pays him in the form of interest on the deposit amount. A deposit account is sometimes called a deposit or a deposit.
In other words, we can conclude that a deposit account in a bank is a way to save and increase your money using the services of financial institutions.
Appearance story
Greece is considered the channel in which the first principles of deposit accounts began to emerge. In times when there were no modern financial institutions and the awareness of what a deposit account in a bank was, people kept their wealth in temples. They put their goods in pots, wrote their name and date. At the same time, the temple committed itself to the preservation of values, but at the same time took a reward for such a service. It was more reminiscent of today's service of preserving values in individual depository cells that banks provide.
At a time when more and more people kept their savings in gold coins, the so-called "money changers" appear. They kept money for a certain fee. Then they realized that the gold coins that they hold can be given to other people in the form of a loan and earn money on it. At this moment, the first principles and understanding of what a bank deposit account was born.
When investors found out that money changers earn on their money, they wanted to have some kind of dividends from this. From this moment, the principle of accrual of interest for deposit placement appeared.
There are several types of deposits. This article discusses the most popular of them.
What are the types of deposits by term?
According to this criterion, they distinguish:
1. Demand deposits.
This is such a type of deposits, in the conditions of which it is stated that the deposit agreement has no validity period, that is, they are unlimited.
2. Time deposits.
Such deposits have a fixed term. Often contracts are concluded for 3, 6, 9, 12 and 24 months, but other options are possible. Such deposits can be returned ahead of schedule, if this is provided for by the contract.
What are the ways to withdraw deposit funds?
According to the method of withdrawing deposits, deposits can be divided into the following types:
1. At the end of the term in full.
Such deposits cannot be withdrawn ahead of schedule, unless the client terminates the contract with the bank. But in this case there will be a fine in the amount of interest that the bank will withdraw from the client for violating the terms of storage of funds that were specified in the contract.
2. Partial removal is possible.
Deposit accounts with such an opportunity provide the client with the right to partially withdraw funds from the account, as necessary. Moreover, no penalties from the bank will be applied to it.
Deposits can be withdrawn both through the bank's cash desk and by bank transfer to a card or current account. For this, the bank may withdraw an additional commission.
How are interest accrued on deposits?
Deposits according to the method of calculation and payment of interest are divided into:
1. Deposits with interest at the end of the term.
This implies that the interest that the bank accrues on the deposit amount is given to the client at the time of payment of the deposit body at the end of the term.
2. Deposits with capitalization.
Such deposits are considered more profitable than previous ones. The conditions imply that monthly the interest that is accrued to the client on his deposit, the bank adds to the body of the deposit, that is, from next month, interest will already be charged on a large amount.
In order to better understand what a deposit account in a bank is, you need to divide deposits according to the terms of extension of storage periods (or deposit agreement):
1. No renewal.
These deposit agreements are not renewed after they have ended. Deposit funds will be stored in a bank account without interest accrual until the client picks them up.
2. With prolongation.
Today, the extension of deposit agreements is a popular and popular service. After the expiration date, the deposit is automatically re-allocated for the same period for which the contract was concluded, but at a new deposit rate. Very often, banks have loyalty programs that increase the standard interest rate from 0.5 to 1% for prolongation, which is more beneficial for customers.
According to the method of replenishment, deposit accounts are:
1. With the possibility of replenishment.
Such deposits can be replenished at any time, which is very convenient if there are additional funds that the bank's client also wants to put into such an account.
2. Without the possibility of replenishment.
This type of deposits cannot be replenished, which is prescribed in the agreement on opening a savings account.
What are the most popular deposits?
Following the example of Russian banks, we can conclude that the most popular is the classic deposit account. Alfa-Bank accrues the largest percentage on such a deposit, in comparison with other types of deposits. Classic are those that are placed for a certain period without the possibility of partial withdrawal.
In order to open a deposit account with a bank, usually a person needs to bring a passport and tax identification number with him.