A bank deposit is one of the investment tools that is considered the most accessible and safe even for people who do not know all the intricacies of financial management and banking. With it, you can not only save your money with constant inflation, but also increase it.
In fact, it is not possible to earn deposits in banks, but from the point of view of money back they are the most reliable. In addition, their reliability is proved by the presence of special state programs obliging to insure deposits in case of bank burn-out. This makes it a fairly safe way to invest available funds.
Types of deposits
There are three types of deposits according to the cash management method:
- classic, which completely limits the investor, i.e. he cannot replenish or withdraw money from the deposit account;
- deposit, which allows the depositor to replenish it;
- a deposit that makes it possible to make additional payments and partially withdraw money.
Deposits in banks can be called differently, but they are all divided into three types:
- urgent;
- savings;
- poste restante.
Time deposit
A term deposit, as the name implies, is drawn up for a certain period. It should be borne in mind that the minimum period for which it can open is thirty days, the maximum is several years.
Fixed-term deposits of individuals have their own subspecies:
- deposits in which interest payments are made monthly;
- with payments at the end of the contract.
As a rule, you can earn more on the last type of term deposit than on the first.
Savings deposit
A savings deposit is a deposit within which you can additionally deposit funds to your account. The duration of the contract is usually more than six months. Interest is accrued on the balance of the deposit account daily, the investor can receive interest income at the end of the minimum period specified in the contract.
Poste restante
A demand deposit enables its holder to freely manage funds in the account. Interest on demand deposits is usually small - rarely exceed 1% per annum. Some deposits of this type can be automatically prolonged by the bank, but on less favorable terms.
In what currency do I make a deposit?
Any Russian bank deposits deposits from individuals both in rubles and in foreign currency. In addition, there are multicurrency species.
A multicurrency deposit is a placement of funds in different monetary units on one deposit account at different interest rates. Banking experts recommend opening this particular type, since in the event of a force majeure situation, the depositor has the opportunity to win in at least one of the currencies.
Another point to consider when opening a deposit is that the interest rate on foreign currency deposits is lower compared to a ruble account.
How to choose the most profitable deposit?
What should I pay attention to when making a contribution? This, of course, is the interest rate level. It determines the amount of income that the depositor will receive for having transferred his money to the bank for use.
The interest rate depends on the following indicators inherent in the contribution:
- Amounts
- placement period;
- kind of.
It is worth emphasizing that high interest rates on deposits do not yet speak about the reliability of the bank.
As a rule, a contract signed between a bank and a depositor does not allow the former to unilaterally change the interest rate, except in some cases (this applies to deposits with capitalization of interest and prolongation).
Accrual of interest on deposits
Interest on deposits can be accrued as follows:
- At the end of the deposit period, they are credited to the initial amount.
- Payment is made regularly, for example, monthly or quarterly.
- With capitalization of interest on the deposit. This method involves adding income to the amount of the contribution in the form of interest for a certain period, and already in the next period they will be charged for a large amount. Compensation is paid monthly, quarterly, annually or at the end of the contract. On deposits with capitalization, as a rule, the interest rate is lower, but it can bring more income.
Prolongation
Deposit prolongation is the extension by the bank of an agreement on opening a deposit after the expiration of its validity and the execution of a new deposit for a new term without the consent of the depositor. If the extension is not provided for by the deposit agreement, the entire amount (principal and remuneration) will be transferred to the client’s account, and interest will not be charged anymore. To resume accrual, you need to contact the bank to open a new deposit account.
It is necessary to pay attention to the fact that not all types of deposits provide for prolongation. To use this service, a clause on it must be included in the deposit agreement.
Basically, when making a deposit, a client will need to present a passport of a citizen of the Russian Federation. If a person wants to open a deposit account with a close relative, the bank will require to present his documents or their copies certified by a notary.
Deposit Insurance Agency
DIA was established with the aim of developing a deposit insurance system in Russia. It guarantees depositors a refund of funds in their deposit accounts in the event of bank bankruptcy.
Over the years of its operation, this system has repeatedly demonstrated its excellent work, and thereby increased the attractiveness of deposits for citizens of the Russian Federation.
Conclusion
If you can allocate a certain, albeit small amount of free cash every month and want to accumulate it for some purpose, then a deposit in the bank in this situation would be a good option.
It is clear that such a way of investing funds will not bring a luxurious life in the future in interest, but it will certainly help to solve some problems. In addition, by placing money in a bank, you can not worry about their safety, and the remuneration you receive will cover the ever-growing inflation.