In the modern world, in conditions of absolute lack of time, people are trying to secure some additional, passive income. Almost everyone is now a client of banks or other financial institutions. In this regard, many quite legitimate questions arise. How to make money on bank deposits? Which investments are profitable and which are not? How risky is this event?
Deposit and contribution
In the broad sense of the word, a deposit is money, valuables or other assets placed in a financial institution. In English, the word "contribution" is absent at all, and the values \u200b\u200bcontributed by the client are just called a deposit. But in Russian there are both concepts and there are differences in the interpretation of their meanings. In the Russian-speaking space, a deposit is the amount of money placed by a client in a bank for a certain or indefinite period. The banking organization lets this money intotreatment, and in exchange for this, the depositor receives his interest.
A deposit (in the Russian sense) can be expressed not only in money, but can be any valuable means, and it can be placed not only in a bank. If, for example, a sum of money is transferred to a customs organization to secure any obligations, then this will also be called a deposit.
How do banks make money from deposits?
Banks issue loans to the population at interest. But first, in order to issue a loan, it is necessary to attract funds from depositors (owners of funds that are temporarily held by a financial institution) at low interest rates. These borrowed funds are used to issue loans, but at a high interest rate. A bank deposit is currently issued at 6-8% per annum, while the interest on a loan ranges from 15 to 18% per annum. It is on this difference that banks form their profits.
There are also financial institutions that put the funds collected from clients into various projects, which also allows them to make an income from this. Basically, these are investment funds. Often, banks are also intermediaries in money transfer systems, such as Western Union. For this operation, the sender is charged a fee.
Other services, including currency conversion, various payments, interbank transfers, are also paid. Banks also make money by providing access to trading platforms where they trade in stocks, bonds and other securities. All this toois not provided free of charge. These features typically come with small but steady fees.
Earnings on bank deposits
This is one of the simple ways to make extra money. How to make money on deposits?
If the client has some free amount at his disposal, which can be put aside for a while, then it is quite reasonable to place it in a bank deposit and receive income from this, say, 1% per month, without making any other efforts.
But we must take into account one unpleasant moment in the form of inflation. This process reduces the cost of the deposit by approximately 0.5% per month (not the amount, but its value). It turns out that the real profit will be somewhere around half a percent per month of the invested amount. That is, if a client makes a deposit of one million rubles, then he will receive about 11-12 thousand per month.
But besides inflation, there is also purchasing power. And if the depositor did not withdraw or use his money during the year, then, receiving 120 thousand rubles per million (12% per annum) for the year, you can buy goods (which have already risen in price) in the amount of about 100 thousand rubles (that is, out of 120 thousand rubles subtract 7% inflation).
But we must also take into account that modern technology is getting cheaper rather quickly due to competition. For example, a TV set will certainly become cheaper by 20% in a year, but the amount of the deposit has remained the same as it was 120 thousand rubles. So, despite inflation, by purchasing this TV, the buyer saves 20% of the cost of the goods.
Withdrawal: deposit is the easiest and safestpassive income option.
Classification of deposits by purpose
Deposits are divided according to the category of their intended purpose. To correctly determine the investment, first of all, the client must understand what goal he pursues by making it.
Depending on this, there are deposits: savings, savings or settlement. If the client chooses a savings account, then he cannot make deposits and withdraw funds from it. The highest interest is accrued on such deposits, and these are, as a rule, the most profitable deposits. If the goal is simply to save money, a fixed rate deposit will do. The conditions in this case sometimes allow additional contributions, the final amount will only grow from this.
Savings deposits are intended for customers who are going to replenish the deposit during the term of the agreement. They are suitable for saving for a large amount.
The settlement deposit leaves the client with the opportunity to control their money, manage savings, conduct income or debit transactions.
Classification by timing
It is important not only how much is invested, but also for how long - it depends on how much you can earn on deposits. There are two main types of deposits in banks:
- on demand;
- term deposits.
The first one is suitable primarily for those who want to protect themselves and their capital from the risk of inflation. Under the terms of such a deposit, funds can be withdrawn from the account at any convenient time.
Some banks may have severallimit cash withdrawals by introducing a minimum balance or commission fees. But it is hardly possible to make money on such a deposit, since the interest rate in this case is very low.
When making a term deposit (for a fixed period), the client undertakes not to withdraw money from the account for a certain period.
If the client decides to violate this clause of the contract, the bank deprives him of interest. But this inconvenience pays off with high interest rates on such a deposit, covering the risk of inflation and allowing you to receive a small but guaranteed income.
The criterion for investment duration needs to be carefully considered. If there are no big expenses in the near future, it is better to invest for a year or 9 months, since the rates for these terms are maximum. But if you are still planning to spend money, it is better to make an investment for 1, 3 or 6 months. Since in case of early withdrawal of money from the account, the interest rate will be calculated as the rate for a demand deposit (0.01% per annum), and the interest paid will be deducted from the total amount upon termination of the contract. In this case, you won’t be able to make money: as you know, the shorter the investment period, the lower the interest rate of income.
Therefore, it is very important to choose a bank that does not set strict limits on early termination of the deposit. Due to the great competition among financial institutions, there are now enough banks that do not apply pen alties for terminating the contract.
Method of accrualpercent
In Russia, the interest in banks on deposits in rubles is anywhere from 3.5 to 7.15% per annum. Before you start processing documents, you need to carefully read the offers of various banks and pay special attention to the size of interest rates, as well as familiarize yourself with all possible methods of calculating interest.
As a rule, banks offer a program according to which the determination of the amount of interest is calculated after the expiration of the investment. But there is an alternative option - a bank deposit with monthly interest payments. According to this scheme, accrual occurs monthly or quarterly and with monthly capitalization.
This means that at the end of the month, the amount of interest that the client did not receive is added to the total amount of the asset, and that for the next month the daily accrual is already made taking into account the interest added for the previous month. According to this principle, the total rate becomes higher by another 0.8-1.2% and does not depend on the withdrawal period.
Banks in the insurance system
Modern banks are almost all included in the deposit insurance system, but there are also those that are not there. At the conclusion of the contract, insurance passes automatically. If a critical situation (ruin) has occurred with the bank, then the insurance fund will pay the client up to 700 thousand rubles, plus accrued interest, over a period of 12 days.
There is one subtlety here: the contribution up to the specified amount must be in the singular and issued for one person. That is, if one clientthere are 2 or more deposits of 500 thousand rubles, then only 500 thousand plus interest will be paid, if the deposit is 100 million rubles, the client still receives 700 thousand with interest from the insurance agency.
From this follows a simple conclusion: if there is more money than 700 thousand rubles, then this amount should be placed not in your name, but in your relatives or people you can unconditionally trust.
It is important to foresee one more detail - for each deposit, you must have a cross power of attorney in order to always be able to perform any manipulations with each of your assets. Powers of attorney, as a rule, can be issued in the same bank free of charge. If there are no relatives to whom you can write down your funds, you need to put money in different banks in your name. In this case, the insurance system will operate in each bank according to the above scheme (700 thousand plus interest per person).
You must also be careful if a bank deposit is offered at a high interest rate, for example, above 10% per annum. Such a deal is highly questionable.
This organization may be involved in risky financial transactions.
In principle, if the client's finances on all accounts of this bank do not exceed 1 million 400 thousand rubles, then you can take the risk of concluding an agreement, because this is the maximum amount of investment at which 100% insurance payments are guaranteed in the event of a bank failure.
When there is a storm in the money market, many people doprofit on deposits in other currencies. In times of inflation, such deposits are the most profitable. Financially educated people decide on multicurrency deposits to protect their savings from possible risks.
You can place funds on one deposit in different currencies, and if necessary, transfer them from one currency to another. With this method, the client has the opportunity to quickly manipulate their savings, converting them among themselves without losing the interest they already have. This usually happens at times of sharp price fluctuations.
But for the successful implementation of such a plan, you need to know the conjuncture of the currency market, know how to make money on a multi-currency deposit. For example, when the dollar goes up, advanced market participants partially convert the currency into rubles and, on the contrary, buy dollars after the ruble stabilizes. Thus, in addition to interest income, the investor can make a profit on the difference in rates.
Practically all multi-currency deposits are designed for the classic triad: ruble, euro and dollar. In the range of services of some banks, it is also possible to invest in Swiss francs and pounds sterling.
The multi-currency asset also allows deposits, extensions and early withdrawals. Pay interest at the end of the term or every month.
The rates of multi-currency deposits are usually lower than ruble deposits by 1-2 percentage points in rubles and 0.3-1 - in foreign currency. This is due to the overall low number of such investments. May reduce investor profitscashless conversion costs. Banks convert currencies at their own rate, and not at the rate of the Central Bank. Therefore, with slight fluctuations in the exchange rate, it makes no sense to convert funds.
Deposit replenishment, interest account
One of the fundamental criteria is where the interest is transferred.
It would be nice for the client to have them go to a separate client account and they can be used at their own discretion. This is an important condition of the contract.
A deposit box for storing money and valuables is actually in any bank, but the terms of its payment vary everywhere, this must be taken into account. And do not forget that the use of the cell is often attached as a deposit bonus with conditions that are all the milder, the larger the deposit amount.
Replenishment of the deposit is also a very important procedure, but many large banks are reluctant to do this, they offer to conclude additional transactions, which is unprofitable for the client, but usually there are no problems with this in small and medium-sized banking organizations.
Pleasant little things
There are other ways to make money on deposits. For example, you can get a nice gift when you open a deposit. Sometimes banks have incentive systems that provide quite worthy bonuses: these can be various discounts, "gold" credit cards, expensive coins, trips and much more, but it will depend on the amount invested. The client should not be embarrassed when choosing the conditions that suit him.
It is necessary to carefully pronounce everything withservice personnel, as their job is to keep the customer.
Summing up what has been said, we can conclude that it is quite real - to make money on deposits. Both banks and other financial institutions today provide a variety of conditions for making deposits. Before concluding an agreement, the client needs to consider the goals and terms of his investment, carefully study the rules for calculating interest, make sure that the selected bank is reliable and participates in the mandatory deposit insurance system. In short, carefully study all the points and nuances of the contract so as not to miss anything.