Term deposits are Definition, features, interest and reviews

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

In modern banks, customers are offered various services. One of them is term deposits. This allows clients to earn income through personal funds. Often the money is invested for 1-2 months, after which they can be taken along with the profit. According to reviews, this type of banking service is very profitable. Read more about the service in the article.

Concept

Term deposit is the client's funds transferred to a bank deposit account for a specific time. After that, the money will be returned to the depositor with interest. Terms can be different: from 15 days to 3-5 years. But often people choose from 3 months to 1-2 years. This type of service allows you to receive income from personal free funds.

Term deposit currency is the ruble, as well as the euro and the dollar. You can choose any of them. Interest is usually charged at the end of the term, with closing. But some banks offer to place funds with interest capitalization - daily and monthly. The difference between a term deposita certain return date is considered. With a termless deposit, money is placed from 1 day to infinity. As you can see from the reviews, many people use term deposits, making good profits.

Features

The contract rate set at the time of signing cannot be reduced. The condition exists during the entire validity period of the term deposit document. This is the right of the client. The features of the contribution include:

1. Urgent. This nuance distinguishes investments on demand and urgent. The storage time of the temporary deposit is specified in the agreement. The long term of the agreement and large amounts provide high interest.
2. Early termination of the agreement. If the client wishes to terminate relations with a banking institution before the planned date, interest is paid at the rate of demand accounts.
3. Replenishment. In some banks, it is impossible to replenish temporary deposits, which is indicated in the agreement, while others open replenishable term deposits. The document indicates the minimum amount of contributions and its frequency.
4. Partial withdrawal. In some institutions, you can partially withdraw money from a term deposit account. And in others, this can be prohibited, otherwise a fine is imposed or the percentage is reduced to a minimum.
5. Prolongation of a fixed-term agreement and implies an increase / decrease in the rate, an extension of the previous conditions.

According to reviews, this type of service is in demand due to favorable conditions. You just need to choose the bank with the mostacceptable program to make a profit.

Bets

Term deposits allow banks to plan personal income and know exactly how long the funds can become involved in circulation. These factors determine the interest rates on term deposits. They can be fixed or floating. If the agreement does not establish a specific method of calculating interest, then the formula for regular interest at a fixed rate is applied.

Favorable is the capitalization of interest, when the accrued interest is added to fixed assets, thereby increasing the amount of income. Then interest on time deposits is calculated not only on the primary amount, but also on the accrued interest. As reviews show, rates may vary between banks.

Views

Term deposits in the bank by currency are divided into the following varieties:

1. Currency - dollar / euro, rarely - yuan, pounds sterling, francs, yen.
2. Multicurrency - a deposit that includes several types of currencies. This provides the ability to convert money in the account. This contribution will be profitable during an unstable economy, since the risks of fluctuations in rates are minimized.
3. Deposits in rubles are more profitable than debit deposits in foreign currency.

By term, deposits are divided into short-term (2-3 months) and long-term (2-5 years). If you place money for a period of 2 years, then a large profit will be paid. Deposits for too short periods are subject to minimal interest.

Where can I go?

As the reviews confirm, you need to contact the institution that offers the most favorable conditions. Only then can you get a high return on your investment. You can open a term deposit, you can deposit in the following banks:

1. "Orient Express Bank". The institution offers to draw up a "Christmas" deposit for 1 month. The minimum amount is 30 thousand rubles. According to this program, replenishment is not expected, but there is a capitalization of interest at 20, 1%.
2. "Svyaz-Bank". With the help of the "Maximum income" deposit, you can invest at 18.5%. But you should deposit from 1 million rubles for 3 months.
3. "UniCredit Bank". The organization offers the Click Deposit program at 18.25%. Interest is paid at the end of the term. A contract is drawn up for 1-3 months. The minimum amount is 15 thousand rubles.
4. Promsvyazbank. This bank offers a "Generous interest" deposit. The rate is 18%. The investor needs to deposit from 10 thousand rubles for 1-3 years.
5. "Absolut Bank". Under the "Absolute Maximum" program, 17.5% is charged if more than 1 million rubles are invested for 9-12 months.
6. "Moscow Credit Bank". Thanks to the "Savings+" deposit, you can get a profit of 17.5%. It is necessary to deposit from 1 thousand rubles for 6 months or more.

In terms of reviews, large term deposits are the most profitable. You just need to choose the most acceptable offer among banks in order to get big profits after a while.

If you want to open a deposit in foreign currency, then Globex-Bank offers a 7% income for savings in dollars. In the "Moscow Industrial Bank" under the "Frost and Sun" program, 6.5% is set. You only have to deposit 1 thousand dollars for 1-3 months. Vozrozhdenie-Bank operates under the Profitable Online program, according to which it accepts from $50,000 at 6.3% from 1 year.

Many other banks also have the opportunity to make a term deposit. According to reviews, you should carefully read the conditions for opening a deposit before depositing funds. This type of service provides an opportunity to profitably invest free money.

Sberbank of Russia

You can open a deposit in other institutions. There is a term deposit in Sberbank of Russia. The organization offers to issue:

1. "Save" and "Save online". This program allows you to save money and make a profit during storage. If you make a deposit through Internet banking, then an increased rate is provided. The rate is within 4.05-5.6%. A contract is drawn up for a period of 1 month to 3 years. You need to deposit from 1000 rubles.
2. "Drive" and "Drive Online". The rate is 3.25-4.82% for online and 3-4.32% for registration at the bank office. You need to open a deposit for a period of 3 months to 3 years, with the possibility of extension. The deposit can be replenished for different amounts.

As evidenced by the reviews, manymake deposits in Sberbank. The institution pays profit according to the rules specified in the contract.

How to open?

To make a deposit, you must contact the bank with a passport. Depositing money is confirmed by a passbook, certificate or contract. It is now common practice in banks to apply an agreement that confirms the relationship between the institution and the client.

In the document, the parties indicate the currency, yield, amount and term. The contract must contain the date of issue and information about the client. Financial institutions refuse passbooks. But depositors should be aware that documents that are not named and without identification of a person's representative are prohibited by law.

Thanks to modern technologies, customers can make deposits online, at ATMs, cash desks, self-service points. Banks are introducing remote use of products, so online deposit rates are higher compared to regular ones. According to reviews, making a deposit is not difficult, the main thing is that the conditions are acceptable.

Recommendations

There are a few tips to keep in mind for those wishing to make a term deposit:

1. To reduce the risk of losing interest with early termination of the contract, you need to pay attention to the conditions indicated in the document. Some banks approve fines in such cases. The amounts may be insignificant, or they may be 100% of the accrued interest.
2. Unprofitable to withdraw funds early. If there is a possibility that funds may be needed induring the term of the agreement, you should choose programs with partial withdrawals. Then there will be no fines
3. The law obliges banks to provide savings based on the demand of the contracting party. If they are held, it is considered illegal.
4. Some financial institutions charge a fee for providing a cash deposit that was transferred by bank transfer. This nuance should be negotiated with customers.
5. Banks set a minimum down payment for making a deposit. The higher the bet, the larger the amount required. If the deposit amount is small, it is advisable to choose a deposit with replenishment and a floating rate or make a short-term deposit with a small contribution. Then you can renew the contract with favorable conditions.
6. It is desirable to capitalize interest. Then profitable deposits are available to clients.

Result

Thus, term deposits will be profitable, especially if there is a large amount. If a program with attractive conditions is chosen, then high profits can be expected.