What are bank deposits for? What are refillable deposits?

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

Deposits are quite a popular product of banks. However, in the West, deposits in bonds and stocks are in great demand. Let's answer one important question for understanding the term "deposits": what is a depositum? Translated from Latin - "a thing that was given for storage." Deposits - funds transferred to a bank for storage, subject to return after a certain period of time on certain conditions.

Types of deposits

Let's take a closer look at deposits: what are term deposits and demand deposits.

1. "On demand" - one of the types of deposits. These are attachments that can be made available to the owner any time they need them. Example: salary card account.

2. Term deposits are the same deposits. What is an attachment can be of several types, should be considered separately:

- long-term - for a period of more than 9 months;

- medium-term deposits - from 3 to 9 months;

- short-term investments from one to three months.

The main feature of a term deposit is that the invested funds can be received only after the agreed period of time has expired.

Dignity of deposits

Different banks open deposits. Many people know that such an investment is an effective fundraising. But there are also those who are interested in knowing what bank deposits are for. The essence of such a contribution is the placement of money for a certain period of time in order to receive a larger amount over time. That is, there is an allocation of funds at a certain percentage. Such accounts can be opened by individuals and legal entities. Deposits in banks are famous for the fact that they have higher interest rates than other accounts. Most clients open a deposit account in order to place free funds for some period of time with a profit. When an agreement is concluded between the bank and the client, the money from the (current) depositor's account is credited to the deposit. When the contract expires, the funds will be returned back.

What to look for when opening a deposit

Suppose you decide to open such an account. First decide how much you can deposit. The policy of banks in this regard is the same: the larger the deposit, the higher the interest will be. As a rule, in order to get the most favorable rate, there is a threshold, for example, the account must always be at least $1000. Before opening a deposit account, analyze not only current income/expenses, but also plan them. It is important to calculate everything so that you do not have to urgently withdraw your investments, losing some profit.

Select currency

Experts say that it is important to keep money in the same currency aswhich you plan to make purchases so as not to lose anything during the exchange. Profits come from term deposits. Terms can vary from 1 month to a couple of years. Do not consider interest on demand deposits as an important investment tool, because they are insignificant.

Profit

Income depends on the term of investment, with a longer term and interest is higher. It is important for the investor to decide for how long he can part with his money. For early withdrawal of funds, as a rule, you have to pay. However, given the high competition, banks often offer favorable terms to their customers.

There are deposits that provide certain conditions, if you need to urgently withdraw funds to customers. In this case, the interest may be reduced, and not taken away completely. Pay attention to how interest is calculated, this is done according to different schemes.

Deposits of Sberbank are very popular among the population. Especially people show interest in the replenished deposit. It attracts those customers who can replenish the account with small amounts every month in order to save up for a large purchase, a vacation trip. You can replenish such a deposit through an electronic bank, which is very convenient for cardholders of this bank.