Short-term high-interest deposit. Where are the best conditions?

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

Bank deposits are a way to keep your money safe from the damaging effects of inflation, as well as from thieves who can get under your pillow and steal your stash.

And almost everyone wants to deposit at high interest, but how to do it?

The bank is ready to pay customers differently for different benefits

It's no secret that the basic principle of a bank's operation is to make more money than you spend. There are two main ways to earn money from banks, these are:

• settlement and cash services (hereinafter referred to as RKO);
• lending.

If, in principle, a bank does not need additional financial resources for cash settlement, then in order to lend, it needs to have funds that are issued to customers.

Deposits are the main source of attracting money to business. And even despite the different interest rates, they are all similar to each other, but, of course, they have slight differences.

Interest rate on deposit - wayattract customers

In order to attract the maximum amount of funds in the shortest possible time, banks offer customers to place a deposit at high interest rates. And naturally, the majority of people will choose exactly those financial institutions that set the highest rates.

After all, if a bank offers better conditions around the corner, why not go there to make a deposit?

Financial consultants can, of course, start talking about not looking at the interest rate, but studying the bank's rating, its connections, reliability and financial stability, especially when it comes to high-interest foreign currency deposits.

There is some truth in this and some lies. In fact, with these words they are trying to play on your desire not to be left with a nose and not lose your money.

This, by the way, is a pretty effective way that allows some banks to have a wide customer base without offering any of them to place a deposit at high interest rates.

Highest deposit rate

To be honest, since 2009, most people have learned not to trust their money to banks, which then "burst" like bubbles. But little by little confidence in the banks is being restored, although the current currency fluctuations are cause for concern. But the old foreign currency deposits at a high percentage, of course, can no longer be found.

If you analyze the banking services market, you can see certain trends that are firmly entrenched inRussian Federation. Let's take a look at them.

Of course, there are different banks and banks, and everyone has their own policy on deposit programs, offering a deposit at high interest rates. Despite possible significant differences in interest rates on deposits, the difference in loan and deposit conditions is basically the same.

That is, the difference between the average rate on deposits and loans in most financial institutions of the Russian Federation is at the same level.

Which deposits are better to choose to get the maximum benefit?

Unfortunately, the current deposit conditions, even high-interest bank deposits, do not allow you to really make money on your money. This was especially clearly understood by bank customers who preferred to open deposits in rubles in the hope of a higher rate than in foreign currency.

Due to the fact that the ruble fell sharply against the dollar, the actual capital of depositors depreciated almost twice. Meanwhile, at the end of the term, high-interest bank deposits will bring no more than 13% of income. This is even if inflation is not taken into account. And those who were able to feel the risk and place a deposit in dollars, on the contrary, won.

Comparing interest rates on deposits offered by banks in the Russian Federation with the level of European countries, you can see that banks abroad are willing to pay much less for financial resources. Accordingly, the size of the loan premium is also much lower than under the conditions offered on the Russian financial services market.

Criteria to pay attention to when choosing the type of deposit account

In order to decide how best to place money in the bank, it is worth considering the following points:

• interest rate level;
• deposit term;
• conditions for termination of the contract, obligations of the parties;
• reputation of a financial institution;
• loy alty programs.

Let's look into them in more detail.

Deposit conditions should not be misleading

In search of the highest interest rate, it is easy to fall prey to a scam. If the level of deposit interest is clearly different from the average market conditions, then this should immediately alert.

For example, this may mean that the bank is critically short of cash. Such a position can lead a banking institution to rapid bankruptcy. After all, by raising rates on deposits, you automatically need to increase commissions and interest on loans. And this already threatens that customers may turn away from the bank.

Looking for high-interest deposits for 6 months? Read the following information

Often the highest rates are observed in deposits that are placed for 9-12 months in the national currency. In addition, the conditions for withdrawing interest and the body of the deposit are an important factor.

If you provide the bank with information that you will not withdraw the deposit ahead of schedule, you can count on offers with morefavorable conditions. Although there are various programs for the rapid attraction of money supply, if the bank does not have enough working capital.

In such cases, financial institutions offer short-term high-interest deposits with maturities of 1 to 3 months. But they are the hardest to earn. It only looks like that you are offered as much as 15%, but this is not for the period of the contract (the period for which the money is placed), but for the whole year. So, considering short-term deposits at a high interest rate, divide the proposed level of interest by the term of the deposit agreement.

It is also worth noting one pattern - the larger the banking institution, the lower the deposit rate it can afford. Yes, on the street you can see how some unknown bank offers 15, 17, or even 20% per annum.

Should you believe that your money will return to you? It is very likely that this small financial agent will burst in 3-4 months, and your money will be in someone's pocket, but not you. Even if you want to place deposits for a month at a high percentage, no one will give you a guarantee that any such financial institution will return your money.

At what level are deposit offers today?

The rates can change daily, as they directly depend on the bank's policy and the operational situation in the financial services market.

If you go to the banks today, on average you will be offered:

• term depositsin rubles - from 6.0% to 10.0%;
• for the same deposits, but in US dollars - no more than 3%;
• deposits with an unlimited validity period - no more than 2% if placed in rubles and even lower - in foreign currency.

You can compare these figures with the average inflation rate in Russia, which since the beginning of 2015 has amounted (according to the official version) to just over 10.5 percent. And if we take into account the fact that the ruble exchange rate fell twice, then everything looks even worse.

Thus, you can't really make money on any type of deposit.

Read what you sign

There is a sad fact that of all clients, no more than 10% read the contract. A distinctive category are lawyers who carefully read every word, trying to find some catch.

Often in contracts for deposits in rubles at a high interest rate, as well as in any other, opaque conditions can be prescribed, which come with pitfalls. For example, you are interested in a high interest rate, which is several points higher than in other banks.

The contract of such a bank may stipulate the payment of a commission when placing or withdrawing a deposit. Or there may be pen alties for early withdrawal or something similar.