Why do we need bank deposits? What are replenishable deposits?

Deposits are a rather popular product of banks. However, in the West, deposits in bonds and shares are in great demand. We answer one important question for understanding the term "deposits": what is depositum? In translation from Latin - "thing that was deposited." Deposits - funds transferred to a bank for storage, subject to return after a certain period of time on certain conditions.

Types of deposits

Let's look more closely at deposits: what is a "term deposit" and "on demand" investments.

1. "On demand" - one of the types of deposits. These are attachments that can be accessed by the owner at any time when they need it. Example: an account on a salary card.

2. Term deposits are the same deposits. What is an attachment can be of several kinds, should be considered separately:

- long-term - for a period of more than 9 months;

- medium-term deposits - from 3 to 9 months;

- Short-term investments are from one month to three.

The main feature of a term deposit is that the funds invested can be received only after the agreed time period has expired.

Advantages of deposits

Different banks open deposits. What is an investment is an effective attraction of funds, is known to many. But there are also those who are interested in knowing why bank deposits are needed . The essence of such a contribution is the placement of money for a certain period of time with the aim of obtaining a larger amount of time later. That is, there is a placement of funds at a certain percentage. Such accounts can be opened by an individual and a legal entity. Deposits in banks are famous for the fact that interest is higher on them than on other accounts. Most customers open a deposit account in order to place available funds for a certain period with profit. When the contract between the bank and the client is concluded, money from the account (current) depositor is credited to the deposit. When the contract expires, the money will be returned back.

What to look for when opening a deposit

Suppose you decide to open such an account. First, decide how much you can put. The policy of banks in this regard is the same: the greater the contribution, the higher will be the interest. As a rule, to get the most favorable rate there is a threshold, for example, the account must be constantly at least $ 1000. Before opening a deposit account, analyze not only the current income / expenses, but also plan them. It's important to calculate everything so that you do not have to immediately withdraw your investments, losing some profit.

Select currency

Experts say that it is important to keep money in the currency in which it is planned to make purchases, so as not to lose anything in exchange. Profit brings time deposits. Terms can vary from 1 month to a couple of years. Do not consider interest on demand deposits as an important investment tool, because they are insignificant.

Profit

The income depends on the term of the investment, with a longer maturity and the interest is higher. It is important for the investor to decide on how long he can part with his money. As a rule, it is necessary to pay for the early withdrawal of funds. However, given the high competition, banks often offer advantageous terms to their customers.

There are deposits that provide for certain conditions, if it is necessary to urgently withdraw funds from customers. In this case, the interest can be reduced, rather than taken completely. Pay attention to how the accrual of interest occurs, it is done according to different schemes.

Deposits of the Savings Bank enjoy great popularity among the population. Especially people are showing an interest in the deposit being replenished. He attracts those customers who can replenish the account each month for small amounts to save for a large purchase, a trip to vacation. You can replenish such a deposit through an electronic bank, which is very convenient for cardholders of this bank.