Investment deposit: income reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

Many people habitually keep funds on deposits in banking institutions. Over the long years of its existence, this tool has proven its reliability in ensuring the safety of money, and besides, it can be opened in any bank in a matter of minutes.

But despite the obvious advantages, the deposit has a drawback - a low interest rate. In most cases, it is impossible to even cover inflation with accumulated interest; a deposit only allows you to save your own funds, but not increase them. This minus does not please depositors at all and forces them to look for more profitable banking instruments. One of them is the investment deposit.

Concept

The investment deposit is a deposit, the amount of which is divided into two parts:

• Basic is the usual deposit.
• Additional - the funds of this part will be invested in mutual funds (mutual funds).

Money invested in investment funds is used by banks to play on the stock market, where shares of various enterprises are purchased.

You should understand the differences between an individual investment account (IIA) and an investment deposit. IIS is an investment that a client can manage independently (for example, the well-known banking organization Sberbank. An investment deposit issued there involves independent trading on the sites after completing a training course).

The client who has invested in the investment deposit does not take part in the process of making further transactions, he simply hands over the funds to the bank and forgets about them for the time specified in the terms of the contract.

Features of investment deposits

He can choose the instruments for investment on his own, but there are certain restrictions. The banking institution provides a list of mutual funds, from which the client can choose what he wants. He will not have the opportunity to purchase shares of other companies, this item is written in the contract.

In addition, the bank alone decides on the distribution of the percentage of the deposit and contribution to mutual funds, taking into account the fact that the deposit can be issued for an amount not exceeding the value of the purchased shares.

The basis of investment deposits is that the bank creates a fund from the money contributed by a large number of capital owners, and then distributes the funds on the stock market. The profit earned as a result of trading is divided among all depositors, taking into account the deduction of the interest of the management company as a fee.

Minimum deposit amountis set by the bank and, most often, it is equated to a value of 100 thousand rubles.

Insurance

The next feature is investment deposit insurance. If a regular deposit can be insured on simple terms, then investments in mutual funds are not subject to insurance, because investments in this case work differently.

As mentioned above, mutual funds are made up of funds from depositors, and they are managed by a third party for a fee. The positive aspect of share deposits is that the company's funds can be redirected to any area of the economy in order to maximize profits.

This is the reason why mutual fund income is not insured. Often there is a game in the stock market, the results of which cannot be predicted. Profit from mutual funds is no less subject to all sorts of jumps and risks, however, it can potentially bring the greatest benefit.

Requirement for making an investment deposit

To conclude an investment agreement with a mutual fund, several conditions must be met:

Confirmation by the client of the fact of majority. You can make an investment deposit only upon reaching the age of majority. This limitation is associated with independent management of capital and taxation

Playing the stock market, one way or another, is associated with risks. Invested funds can be multiplied, but their complete loss is also possible. In accordance with the law, disposestate, to be responsible for their actions and deeds, fully understanding the consequences, is allowed for those persons who have reached the age of majority.

The next thing is taxation. The contribution of funds to share resources is considered as entrepreneurship, respectively, is taxed. Even though minors can be tax payers, the legal side of this issue is so imprecise that all discussions that arise on this issue can only be resolved by the judiciary. Actually, for this reason, it is possible to draw up investment deposits only if they have reached the age of majority and have received full legal capacity.

Employment confirmation. When depositing large amounts, banking institutions ask the client for a certificate of earnings of an individual. This is due to the legal side of the agreement, where mutual funds pop up

In the event of a loss or decrease in the assets of mutual funds, all issues are resolved in court, and in accordance with the current legal system, there is a requirement to confirm the ownership of deposits.

The legislation of the Russian Federation does not allow large investments without confirmation of the status of a citizen, but at the same time does not require explanations from which sources the savings were taken. To make a contribution, only a document from the place of work is required, even if the client is employed as a janitor.

• Only residents of the Russian Federation can make an investment deposit. This condition does not require any discussion, sinceMutual fund investing is essentially entrepreneurship. This is how the state systems of all countries are arranged. An investment deposit can only be opened by a taxpayer.
• The amount of the deposit cannot exceed the size of the mutual fund. The bottom line is the interest rate. The deposit part multiplies the profit, receiving a favorable increased rate due to the contribution to investment funds. That is why deposits are mainly valid for short periods of time. Thus, banks are protected from inflation. Quite common are programs where you can purchase additional shares, which make it possible to increase income and replenish the deposit.

Where can I open an investment deposit

First of all, you should consider banking institutions located near your region of residence. So that if you need a personal presence, you can quickly get there.

Many financial institutions offer an investment deposit, consider the most popular of them:

• Loco Bank;
• Promsvyazbank;
• Gazprombank;
• Bank Rosgosstrakh;
• Raiffeisenbank.

Comparison table of investment deposit conditions

Bank name	Loco Bank	Promsvyazbank	Gazprombank	Rosgosstrakh Bank	Raiffeisen Bank
Rate, percentage	9, 05	9, 5	8, 1	8	6, 5
Amount, in thousands	from 100	from 50	From 50	From 100	From 50
Deadline	400 days	6 months to a year	From 100 days to a year	From 100 days to a year	From 100 days to a year
Possibility of replenishment	No
Prolongation	Only available at Promsvyazbank
Capitalization	No
Partial withdrawal	Possible only in Loco Bank
Early cancellation benefits	No
How interest is calculated	monthly	After the deadline	After the deadline	After the deadline	After the deadline

From the table, the following features of investment products offered by banks can be distinguished:

• The term of the investment deposit is up to 1 year.
• Additional options in the form of replenishment, withdrawal, capitalization, etc. are practically not provided, with some exceptions for depositsinvestment.
• Income is paid at the end of the contract.

How to open an investment deposit

The process of making an investment deposit is almost the same as opening a regular deposit.

You have already understood what an investment deposit is. Opening it is as follows:

• Potential investor chooses a financial institution, studies programs.
• Clarifies the possibility of making a deposit through your personal account online and at the bank office.
• When choosing the second option, the client should come to the bank with the necessary package of documents and the amount.
• An investment agreement is concluded.
• Paid investment shares and basic deposit.

There is nothing difficult in the procedure for making an investment deposit, an employee of a bank branch will help the client in the preparation and acceptance of documentation, as well as advise on all emerging issues.

For customers who have previously used similar products of the bank, access to making a deposit through the user's personal account is opened. It is necessary to find out in advance about the provision of such an opportunity.

Contributions to investment projects

In addition to bank investment deposits, there are so-called highly profitable projects called HYIPs.

HYIP or HYIP (High Yield Investment Project) is translated from English as an investment project with high returns. However, such an investment contribution, according to reviewscustomers is a scam.

Project features

The principle of operation of such projects is similar to the Ponzi pyramid. A high percentage of payments is provided by incoming new deposits, which are made by newly registered users. Thus, the project is fueled by new money, but as soon as the funds stop coming and they are no longer enough to cover obligations to investors, payments end and the hype closes.

Fraud consists in the fact that the whole system is disguised as a fictitious legend, that is, an invented story, due to which investors receive interest. Investors with experience are well aware of all this and are aware of the possible risks associated with financing such projects.

Conclusion

Such banking products as a transitional form from liability to asset have every chance of existing. It is reasonable to open investment deposits in banks, about which customer reviews are rather contradictory, with a minimum amount and evaluate according to results, especially since the term of the deposit is rather short with a relatively high percentage.