A deposit is one of the most common and well-known ways of investing your own funds. Despite many different ways to make equity work (investments, transfer for trust, participation in exchange trading), a bank deposit agreement is a profitable, safe and reliable way to accumulate cash resources.
What explains the popularity of deposits? To begin with, a bank deposit agreement is an absolutely secure means of investing money, as by current standards, most deposits are insured, which means that if a financial institution is insolvent, you will not lose your money (unlike many investment funds, where investment insurance is usually absent). In addition, the possible low yield of the deposit is offset by a guarantee of the interest rate, which is a more reliable option to accumulate capital compared to exchange trading and investments.
The variety of deposits, the various lines of which is represented by almost every bank, today allows you to choose the most profitable and attractive deposit for each client. The most important characteristics of deposits include the following positions:
- the possibility of partial withdrawal and replenishment;
- loss of interest upon early repayment of a deposit;
- method and terms of interest calculation;
- automatic prolongation;
- minimum and maximum deposit amount.
In order to create a deposit between a financial institution and a depositor, a bank deposit agreement is necessarily concluded. The concept of deposit implies the acceptance by the bank of a certain amount of money and the return after the agreed period of the previously transferred amount, as well as interest on the deposit. The subject that regulates the norms of the deposit agreement is the amount of money that is transferred to the deposit.
The bank deposit agreement gives the investor the right to submit claims to the bank related to the return of the deposit amount and accrued interest on the deposit. At the same time, there are no obligations of the depositor to a financial organization, i.e. This paper establishes only the obligations of the bank to the depositor. It is noteworthy that the bank does not have the right to establish unequal conditions for different depositors under the same deposit program and not to accept funds for a deposit under the current program if all its selection criteria are met. The deposit agreement is legally regulated by the current regulatory framework.
Not only individuals, but also organizations can open a deposit . Before transferring money to a deposit, it is important to make sure that the selected financial institution has a license granting the right to accept funds in deposits. This requirement is regulated by the Civil Code of Russia (Article 835).
A written bank deposit agreement must be created at the first request of the person transferring the funds. At the same time, two main types of deposits are distinguished: “demand deposits” and term deposits. Regardless of the type of deposit and the deposit program, the bank is obliged to return the entire deposit amount if there is a corresponding request from the depositor. A different development of events may be provided for by the deposit agreement, however, in any case, the description of the rules for depositing money into the deposit may not contradict the current legislation.
In conclusion, we note that the opening of a deposit must necessarily be accompanied by a written contract. Such an agreement may be represented by a savings book or certificate or some other banking document that governs the rules for depositing funds and complies with the law.