Deposits are a fairly popular product of banks. However, in the West, deposits in bonds and stocks are in great demand. We will answer one important question for understanding the term “deposits”: what is depositum? Translated from Latin - "the thing that was deposited." Deposits - funds transferred to a bank for storage, subject to return after a certain period of time on certain conditions.
Types of deposits
Let’s take a closer look at deposits: what is a “term deposit” and “demand deposits”.
1. “Demand” - one of the types of deposits. These are investments that may be available to the owner at any time when he needs them. Example: payroll card account.
2. Fixed-term deposits are the same deposits. What such an attachment can be of several types, should be considered separately:
- long-term - for a period of more than 9 months;
- medium-term deposits - from 3 to 9 months;
- short-term - these are investments from a month to three.
The main feature of the term deposit is that the invested funds can be received only after the agreed time period ends.
Advantages of deposits
Different banks open deposits. What such an investment is an effective fundraising is known to many. But there are also those who are interested in knowing why bank deposits are needed . The essence of such a contribution is the allocation of money for a certain period of time in order to receive a larger amount in time. That is, there is a placement of funds at a certain percentage. Such accounts can be opened by an individual and legal entity. Deposits with banks are famous for the fact that interest on them is higher than on other accounts. Most customers open a deposit account to place available funds for a period with a profit. When an agreement is concluded between the bank and the client, the money from the account of the (current) depositor is credited to the deposit. When the contract expires, the funds will be returned back.
What to look for when opening a deposit
Suppose you decide to open such an account. First decide what amount you can put. The policy of banks in this regard is one: the larger the contribution, the higher will be the interest. As a rule, there is a threshold for getting the best bet, for example, your account must always have at least $ 1000. Before opening a deposit account, analyze not only current income / expenses, but also plan them. It is important to calculate everything so that you do not have to urgently take your investments, having lost some profit.
Currency selection
Experts say that it is important to keep money in the currency in which you plan to make purchases so as not to lose anything during the exchange. Time deposits make a profit. Dates can vary from 1 month to a couple of years. You should not consider interest on demand deposits as an important investment tool, because they are insignificant.
Profit
Income depends on the term of investment, with a longer term and interest is higher. It is important for the depositor to decide how long he can part with his money. For early withdrawals, as a rule, you have to pay. However, given the high competition, banks often offer favorable conditions to their customers.
There are deposits subject to certain conditions, if it is urgent to withdraw funds to customers. In this case, interest can be reduced, and not taken away completely. Pay attention to how interest is calculated, this is done according to different schemes.
Sberbank deposits are very popular among the population. Especially people are interested in a replenished deposit. It attracts those customers who can replenish their account for small amounts every month to save up for a large purchase, a trip on vacation. You can replenish such a deposit through an electronic bank, which is very convenient for cardholders of this bank.