Sberbank's certificate: what is it like?

At a time when a person has free money, he wants not only to save them, but to increase them. Now we will talk about what is the certificate of Sberbank and what is its difference from deposits.

What is a savings certificate?

So, this is a security that is a reliable tool for saving funds. The certificate verifies the amount that an individual has deposited into an account with Sberbank. The owner of the paper may, after a certain period of time, withdraw his money from interest accrued on them.

What is the savings certificate from Sberbank different from a simple deposit?

The most important difference between a certificate and a deposit is that in the first case there is no need to open an account for a particular person, since this security is issued to the bearer. Thus, the owner who received a savings certificate, Sberbank gives the opportunity to give it, sell it, buy it or give it to the inheritance without any problems. It can also be used as a payment document.

Benefits of buying a certificate

Among the advantages that the certificate of Sberbank, you can distinguish:

1. Higher interest rate than on the deposit, 9.75% per annum. In this case, the owner of this paper will receive high returns.
2. Money in a savings certificate can be saved for a long time, as well as presented for payment at any convenient time before the end of the contract.
3. Mobile use. The certificate can be donated or sold at any time, while getting the full amount in your hands.
4. A certificate of the Savings Bank can be cashed by any person holding securities and a document that proves the identity, so it is not required to issue a power of attorney or to independently apply to the bank. But it's worthwhile to be cautious, since the certificate can also be cashed by scammers. Paper should be given only to someone you really trust.
5. The certificate of the Savings Bank has protection, which is more similar to the protection of banknotes, so you can without fear of saving your own savings in this form.
6. The maximum amount here is practically unlimited. The certificate of the Savings Bank can have a face value of up to 8 million. You can also save money from 3 months to 3 years.

Disadvantages of purchasing a Certificate

Certificates still have several significant drawbacks:

1. The minimum amount for the purchase of the certificate is 10 thousand rubles. The securities can be purchased, but not cashed. If required, the money can be returned in full before the end of the term, but the interest rate will be 0.01 percent, as for the deposit "On Demand". As for the certificates, the rate will be floating.
2. The certificate can not be renewed as deposits. Therefore, it is possible to use the terms for such securities only if the funds are completely withdrawn from them and the security is purchased again.
3. Another disadvantage is that certificates are not subject to insurance. Therefore, if the company goes bankrupt, compensation for damage can be made only in the order of the queue.
4. Interest accrues only at the very end of the term, while the deposits have capitalization and placement of their funds at a higher rate, that is, by transferring from one deposit to another.

Before you purchase a savings certificate, you should decide for yourself how much the advantages outweigh the shortcomings.