Finance, Personal Finance
What are the advantages and disadvantages of a savings certificate?
As soon as people have free money, they aspire not only to keep them safe, but also to increase the available amount. Let's talk with you about what constitutes a savings certificate of Sberbank and what is its difference from deposits.
So, the certificate is a security, a reliable financial tool in order to save your money. They are certified by the amount that an individual is paid into an account with Sberbank, and can also be withdrawn with income after a certain period has expired. The main difference of the certificate from deposits is that it does not need to be registered for a certain person, as it is issued to the bearer. In such a situation, it can be donated, sold, redeemed, or inherited without special problems, and it is often used as a means of payment.
What are the advantages of a savings certificate?
- money a bank savings certificate can save a long time, and it can be presented for payment at any convenient time after the expiration of the contract;
Mobility. You can give it or sell it at any convenient time and get your full value in hands;
- the certificate can be cashed by any person, therefore it is not required to issue a power of attorney or to independently apply to the bank, but you should be careful and see that the certificate does not fall into the hands of scammers;
- bank savings certificate has the same protection as banknotes, so you can not be afraid to keep your funds in this form;
- the maximum amount is practically unlimited, since the securities are sold with a par value of up to eight million.
What are the drawbacks of a savings certificate?
- The savings certificate can not be prolonged, unlike the deposits, the terms on these securities can be used again only after the securities have been fully cashed. After that, the person should again purchase a certificate.
- The third disadvantage, and quite significant, is that the savings certificate is not insured in the DIA system. That is, in the event of force majeure, for example, bankruptcy of the bank, the owner will not be compensated for the damage, at least in priority order.
- Accrual and payment of income under the certificate is made only at the end of the contract, while for deposits the income is transferred every month, and the funds can be placed on more favorable terms, that is, by switching from one program to another.
- A certificate of bearer can be used to receive funds to any person, including a fraudster. And you can restore your rights only with the help of a court. Before you invest your money in a savings certificate, you should weigh and compare all the advantages and disadvantages, as, perhaps, it's not worth it.
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