Deposit certificate: concept and properties

Deposit certificate is a security of the bank, which is a confirmation of the right of the depositor to receive a certain amount of money and interest at the end of the term of the security. The validity of the deposit certificate is usually from several weeks to several years. As a rule, you can cancel the deposit certificate at any time, but then interest on it is calculated according to the scheme for calculating interest on demand deposits. Only legal entities and private entrepreneurs have the right to purchase such a certificate, so they are purchased only by bank transfer.

The deposit certificate acts as an excellent tool for investing funds of legal entities. All banks set a minimum amount of a certificate of deposit, which is available not only to large enterprises, but also to small business organizations. The interest rates for such securities are very attractive, cashing out is quick and without much difficulty, so deposit certificates are often purchased by legal entities for mutual settlements.

Like most securities, the certificate of deposit can be used for mutual settlements or as collateral for obtaining a loan. Registration of the assignment of the right of claim is confirmed on the back of the certificate. Most often, transactions for the purchase and sale of certificates are made in the same bank where they are issued. Sometimes restrictions are imposed on the use of certificates, and then these securities are kept in the bank. Minus the certificate with the restriction that its owner can not assign to anyone the right to own a security, but plus they are concluded in a larger percentage of this certificate of deposit.

In large Russian banks it is usually not a problem to purchase a certificate of deposit. If you purchase certificates of deposit of Sberbank, you will also receive a certificate of purchase, which, if you lose the original, will help you get a duplicate of the security. Sberbank's certificates are usually urgent (valid for one year) and registered, that is, certificates of deposit to the bearer, although the right of claim can be transferred.

The deposit certificate of Sberbank becomes a document on demand, if the time for receiving the deposit expires, that is, its owner receives the money amount exactly on the day when it needs it. The deposit certificate of the Savings Bank does not allow the calculation of goods or services, but the bank can accept such securities as collateral when granting a loan to the holder of the deposit certificate. Sberbank has such a valuable paper as a savings certificate with a floating interest rate and a face value of 1, 10, 50 thousand rubles. A special feature of this certificate is that it is sold to individuals and is a certificate of bearer.

Other commercial banks also issue deposit certificates, but their main drawback is that the state does not guarantee the safety of their deposits. Nevertheless, they apply deposit insurance and keep mandatory reserves with the Central Bank of Russia to increase the guarantee of depositors. In addition, the central bank is responsible for the procedure for the formation of insurance funds of banks, which are mandatory. They can serve to cover the financial risks of these banks, deposit insurance, compensation for possible losses to customers. In addition, there is a law in the legislation that allows the Central Bank of Russia to use the reserves held by it as security for government debt obligations, which is evidence of a new level of legal relations in the Russian savings business.