Features of bank deposits

Features of bank deposits

The vast majority of people for life at least once, but think about the possibility of putting money in the bank at interest. Moreover, advertising in all media is actively calls for it. But the choice in their bank deposits and so big that it is not easy to navigate in the diversity.


Contribution - is money that made a natural or legal person to the financial institution for storage and for profit. What types of deposits to date, we can offer a variety of financial institutions?

Time deposits and demand deposits

On demand deposit you can put any amount, but it should not be below the minimum set by the bank. The amount you can withdraw at any time, but more than that, there is stored. Because the bank uses your money in operations, low interest rates chargeable. To these percentages were accrued, the contribution must be stored at least a month in the bank.

Rates on deposits in all organizations are different, but, as mentioned, it is always small. Often, together with the opening of deposit the bank presents to the customer bank card, which is linked to the deposit. Its convenience is that, using the terminal or ATM, you can withdraw money from the account to pay for goods in shops or to transfer funds from one checking account to another, such as on weekends and holidays, when many banks do not work.

Demand deposits can start only individuals. This contribution is usually open-ended or is for a long period of 10 to 15 years.

Term deposit as is already clear from its name, has an expiration date. He is either the month (1 to 18) or years (from one to five years). The minimum amount of the bank also defines itself.

The fundamental difference from the term deposit demand deposit that the depositor within the period specified in the contract, has the right to withdraw money.

Of course, there are certain circumstances under which this can be done, but then the bank imposes a penalty, and they are the more than ever people want to cash out. Interest on term deposits is quite high and depends on the bank of the amount and on the period. Most often the percentage is higher in the event that long term contract. Term deposits exist without the ability to replenish and with the possibility. Very well, if the capitalization of interest is provided. Capitalization - the process of adding interest to the deposit amount in the future with the help of which you can charge interest on interest.

Types of term deposits.

savings

Such a contribution can not replenish, it can only save money, increasing their capitalization by. At the end of the contract term deposit amount withdrawn.

Savings

This contribution is often open for a particular purpose, for example, the desire to save up for an apartment, car, etc. These kind of contribution is interesting because, in the accumulation of a certain amount, enough for a down payment (eg, mortgage), the investor can take the second half of the amount in a bank loan. Savings deposit is subject to replenishment, but the percentage it is slightly lower than the savings.

Features of bank deposits

There are also two kinds of deposits - targeted and conditional. Targeted infest contributions to imperfect person's name, and for a period of not less than 10 years. At the end of the term the investor (who has by then become an adult) can itself manage money and interest.

Conditional - contribution to wound the other person's name, which can dispose of the contribution, but subject to certain conditions, said the person who brought in the money.

Of special note is a separate type of deposit - metal account. Their essence is that the client buys from the financial organization of the precious metal ingot (platinum, gold, palladium, silver) of a particular weight at a price that is set at the time of purchase. The ingot is then stored in the bank and the client receives a document certifying the right of ownership ingot. Houses keep them profitable because the cost of precious metals on the market is constantly changing, and therefore the bank's interest rate changes, thereby increasing the contribution rate. You can sell bullion to the bank at a cost that was established at the time of purchase on the market. But you should know that the sale of the VAT charged. Therefore, it is desirable to follow the quotes of precious metals on the market and sell when the price is most favorable. Otherwise, if the increment is small, the VAT can "eat" all the profits from the sale.

What kind of choose the deposit - it is a question of an individual. Each has its advantages and disadvantages. For example, demand deposit is the most convenient to use, since access to the depositor at any time, but it has a low interest rate. At the time deposit rate is higher, but money is inviolable until the expiry of the contract. The metal also contribute beneficial in the long term.

And finally, before you choose a contribution worth checking on the reliability of the bank and the possibility of deposit insurance.