Bank deposit agreement: description, advantages, regulatory framework

Deposit - one of the most common and well-known ways of investing your own funds. Despite many different ways to get your own capital to work (investment, transfer for trust management, participation in exchange trades), a bank deposit contract is an advantageous, safe and reliable way to accumulate monetary resources.

What accounts for the popularity of deposits? Let's start with the fact that the bank deposit contract is an absolutely protected means of investing money. According to the current regulations, most of the deposits are insured, which means that if the financial institution turns out to be bankrupt, you will not lose your money (unlike many investment funds, where investment insurance is usually absent). In addition, the possible low profitability of the deposit is compensated by the interest rate guarantee, which, in comparison with exchange trades and investments, is a more reliable option to accumulate capital.

A variety of deposits, various lines of which are represented by almost every bank, today allows choosing the most profitable and attractive deposit for each client. The most important characteristics of deposits include the following positions:

• Possibility of partial withdrawal and replenishment;
• Loss of interest on early repayment of the deposit;
• Method and terms of accrual of interest;
• Automatic prolongation;
• The minimum and maximum amount of the deposit.

In order to create a deposit between a financial institution and a depositor, a bank deposit contract must necessarily be concluded. The concept of a deposit implies the acceptance by the bank of a certain amount of money and a return after the agreed period of the amount transferred earlier, as well as interest on the deposit. The subject that regulates the norms of the deposit agreement is the amount of money that is transferred to the deposit.

The bank deposit agreement grants the investor the right to present claims to the bank related to the return of the deposit amount and accrued interest on the deposit. At the same time, there are no any obligations of the depositor to the financial institution, i.e. This paper sets only the bank's obligations to the depositor. It is noteworthy that the bank does not have the right to establish different conditions for different depositors for the same deposit program and not to accept funds for the current program if all its selection criteria are met. The deposit agreement is legally regulated by the current regulatory framework.

Not only individuals, but also organizations can open a deposit . Before transferring money to the deposit, it is important to make sure that the selected financial institution has a license granting the right to accept cash deposits. This requirement is governed by the Civil Code of Russia (Article 835).

A written agreement of a bank deposit must be created at the first request of the transferor . At the same time, two main types of deposits are distinguished: "on demand" and urgent. Regardless of the type of deposit and deposit program, the bank is obliged to return the full amount of the deposit if there is an appropriate request from the depositor. Other developments may be stipulated by the deposit agreement, however, in any case, the description of the rules for depositing money into the deposit can not contradict the current legislation.

In conclusion, we note that the opening of the deposit must necessarily be accompanied by a written agreement. Such a contract can be represented by a savings book or a certificate or some other bank document that regulates the rules for placing funds in a deposit and complies with the norms of legislation.