Sberbank certificate: what it is

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

At the moment when a person has free money, he wants not only to keep it, but also to increase it. Now we will talk about what a Sberbank certificate is and how it differs from deposits.

What is a savings certificate?

So, this is a security that is a reliable tool for saving money. The certificate certifies the amount that an individual has deposited into an account with Sberbank. The owner of the paper after a certain period can withdraw his money with interest accrued on them.

How does a savings certificate from Sberbank differ from a simple deposit?

The most important difference between a certificate and a deposit is that in the first case it is not required to open an account for a specific person, since this security is issued to the bearer. Thus, the owner who has received a savings certificate, Sberbank gives the opportunity to donate, sell, buy or inherit it without any problems. It can also be used as a payment document.

Benefits of purchasing a certificate

Among the benefits that a Sberbank certificate has are:

1. A higher interest rate than on a deposit - 9.75% per annum. In this case, the owner of this paper will receive high incomes.

2. Money in a savings certificate can be kept for a long time, as well as presented for payment at any convenient time before the end of the contract.

3. Mobile use. The certificate can be given or sold at any time, while receiving the full amount.

4. A Sberbank certificate can be cashed out by any person who has securities and an identity document in his hands, so you do not need to issue a power of attorney or contact the bank yourself. But you should be careful, as scammers can also cash out the certificate. Paper should only be given to someone you really trust.

5. The Sberbank certificate has protection, which is more like the protection of banknotes, so you can save your own savings in this form without fear.6. The maximum amount here has practically no restrictions. A Sberbank certificate can have a face value of up to 8 million. You can also save funds from 3 months to 3 years.

Disadvantages of purchasing a Certificate

Certificates still have a few significant drawbacks:

1. The minimum amount to purchase a certificate is 10 thousand rubles. Papers can berepurchased but not cashed out. If required, the money can be returned in full before the end of the term, but the interest rate will be 0.01 percent, as for the “On Demand” deposit. As for certificates, the rate will be floating.

2. The certificate cannot be renewed like deposits. Therefore, you can use the conditions for such securities only in the event of a complete withdrawal of funds from them and the acquisition of the security again.

3. Another disadvantage is that certificates are not subject to insurance. Therefore, if the company goes bankrupt, then damages can only be made on a first-come, first-served basis.4. Interest is charged only at the very end of the term, while deposits have capitalization and placement of their funds at a higher rate, that is, by transferring from one deposit to another.

Before you buy a savings certificate, you should decide for yourself how much the advantages outweigh the disadvantages.