Savings bank account: conditions, advantages and disadvantages

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The habit of saving money in cash is a thing of the past. This is due to the rapid development of the banking system. In addition, as you know, money should work and bring, albeit small, but profit. Today, there are several ways to place your own funds in the bank. This can be a regular deposit or a plastic card and a current account with a financial institution. These products have been known to consumers for a long time.

Relatively recently, a new offer appeared on the domestic banking services market - a savings account. We will talk about him further.

What is a savings account?

The very name of the product indicates that the funds on it can not only be stored, but also extract some profit from them. What category of the population uses this offer more often? First of all, we are talking about bank card holders. Often, already in the process of processing plastic, managers offer customers to open a savings account in a bank. What features does this product have, what are its differences from traditional accounts? How to use it andin which financial institution is it better to open it?

Why open such an account?

Many service packages offered by banks already include the option of opening a savings account. Most of the time, that's how it's done. There are several main reasons that may encourage bank customers to open a savings account. First of all, it should be noted that for this type of accounts, credit institutions offer a higher interest accrued on stored funds.

In addition, the terms of the agreement often do not provide for the receipt of dividends on the main card account. Sometimes banks set limits on the maximum deposit amount. In this case, the client gets the opportunity to transfer part of the funds to the savings account. Customer reviews confirm that this product can act as a kind of guarantor of the safety of money. There are frequent cases of loss of plastic cards, as well as various manipulations with them by fraudsters. A savings account gives you a sense of security and peace of mind regarding the safety of your savings.

Creating an account without a plastic card. Account Management

Surely many are interested in the possibility of creating a savings account without issuing a plastic card or concluding an agreement with a bank to provide a certain package of services. It must be said right away that not all financial institutions provide such an opportunity. For example, RaiffeisenBank does not require a bank card to open a savings account for its customers. In addition, in this institution, you can replenish the savings account or withdraw funds from it both in cash and by bank transfer.

Managing your savings account is easy and convenient. First of all, this applies to existing customers of the bank. They can remotely open an account using the Internet, transfer funds to it or withdraw funds at any convenient time. In this case, you can use both a personal computer and a tablet or smartphone.

Account or deposit?

In recent years, financial institutions have vigorously promoted savings accounts among the population. And there are many reasons for this. This product can really be interesting and beneficial to many consumers. Thus, these accounts often offer higher returns than fixed-term deposits. How is interest calculated on a savings account, and in what amount?

The size of the account balance, the level of prestige of the package of services within which the account was issued can affect the rate. In addition, the interest is also affected by the period during which the money was kept on it. For example, VTB Bank offers consumers a rate of up to 10% per annum.

Among the main advantages of a savings account is the absence of a fixed period of its operation. It is issued for an unspecified period, and the time of storage of funds on it in advance speciallynot specified or defined. The client has the right to decide when he needs to withdraw the required amount or, conversely, replenish the account. But there is one caveat. The term of keeping money in such an account sometimes determines the final interest rate.

Benefits

The conditions of the savings account compare favorably with the deposits that were popular at the time, which provided for the possibility of replenishing and withdrawing funds. In addition, the mentioned deposits, as before, are subject to restrictions regarding the minimum balance, the maximum amount of money that can be withdrawn, as well as the minimum amount of replenishment of the account. Also, for such deposits, periods are set through which you can replenish or withdraw funds.

For time deposits, a constant interest rate is determined, if it was fixed in accordance with the terms of the concluded agreement. In addition, there are deposits with varying interest. Its size is affected by the key rate set by the Central Bank of the Russian Federation (Bank of Russia). During the period of keeping funds in the bank, this parameter may change, but such cases must be prescribed by the parties in the contract.

The current interest rate on the savings account is known at the time of its opening. At present, there is a trend to reduce rates, and in the near future, they, apparently, will not grow. It should be noted that the savings of individuals are protected by the Russian stateDIA Corporation (Deposit Insurance Agency). This applies to both deposits and savings accounts.

Disadvantages of a savings account

By and large, a savings account has only one drawback compared to a term deposit. Such accounts have a lower yield than deposits. Some banks specifically limit the maximum amount that can be deposited on it. In addition, certain limits are set on the interest rate, depending on the amount of funds deposited by the client. For example, if the amount is less than 300 thousand rubles, then 7% per annum is charged. When depositing more money, the interest rate is reduced to 3% per annum. In different credit institutions, these conditions may differ.

It should be emphasized that some financial institutions set certain restrictions on the use of such an account. For example, VTB Bank provides an opportunity to replenish a savings account exclusively by bank transfer. And it will be possible to withdraw funds from such an account opened with Alfa-Bank only after the preliminary transfer of the required amount to a plastic card. In this case, the commission will not be charged if the bank card is issued in the same bank.