Bank deposits are a tool for generating a small but stable income. However, the interest rate on them rarely covers the real rate of inflation. Therefore, instead of the usual deposit, you can issue a bank certificate. Interest is accrued at a higher rate, and the circulation period may be even one day.
Definition
In ch. 44 of the Civil Code of the Russian Federation it is said that a bank certificate is the Central Bank, which confirms the fact of depositing funds to the account and the right of the depositor to receive a certain amount of funds after the specified time. The document is issued only by a credit institution. The order of circulation of the Central Bank on the market is regulated by letter of the Bank of Russia No. 14-3-20.
The Central Bank is issued only on a form with a high degree of protection. It spells out the terms of circulation, payment and release. Coupon interest is paid in Russian rubles at the established rate. The bank does not have the right to change it unilaterally. Interest is paid at the time of repayment of the value of the Central Bank. If the certificate is presented ahead of schedule, then the income is calculated at the rates provided for fixed-term deposits. You cannot extend the validity period of a document.
Interest income on such securities is higher than on ordinary deposits. However, certificates do not participate in the insurance system. Therefore, in the event of bankruptcy of a credit institution, holders will not be able to receive their funds.
Bank certificate: types
Certificates of deposit are intended for legal entities. They can be issued for up to one day. Only savings certificates are available to individuals, the circulation period of which on the market can reach from 3 months to 3 years.
Bearer bank certificates can be presented to third parties. Rights on this securities are transferred without reissuance. Third parties can receive income under a personal certificate only if there is an assignment. All payments for the sale and purchase of securities are carried out in non-cash form. After the expiration of the period indicated in the document, the certificate becomes the Central Bank on demand. That is, the credit institution must pay the specified amount at the request of the client.
Requisites
A bank certificate is considered valid if the following data are available:
- Title of the document;
- number, series;
- opening date;
- deposit amount;
- Bank's obligation to return the amount, including interest;
- date of claim;
- interest income rate, including upon early presentation;
- the amount due (in numbers and words);
- bank account;
- FULL NAME. the depositor and his passport data, attachments to the certificate for registration of the assignment (for the registered depositor);
- Signature of bank responsible persons.
The credit institution may indicate additional details.
Cession
Assignment of a claim for a registered securities is made out on the back of the document or on additional sheets. The agreement is signed by the old and new owners, the legal entity authorized to conduct such operations, and sealed. A bank account certificate can only be transferred before the maturity date.
Some statistics
Certificate, bank deposit provide an opportunity to receive additional income. Although the Central Bank brings more interest, its demand is constantly fluctuating. The greatest demand for certificates was observed in 2007, when 46.7% of non-registered securities were issued for up to one year. After the financial crisis, demand fell sharply. In 2011, certificates worth 11.5 million rubles were sold, which is 50% less than in 2007. In 2014-2015 there was a sharp surge in investment.For one year, banks sold the Central Bank a total of 349.7 million rubles, of which 78% were certificates with a validity period of more than one year.
Benefits
The certificate (bank deposit) has the characteristics of a conventional deposit and securities. The interest rate is fixed during the execution of the document, and income is paid at the time of its repayment. Like the Central Bank, a certificate can be transferred to third parties, bequeathed or left as a pledge. In the last two cases, the transfer of claim rights can be difficult. After the expiration of the document must be reissued. Therefore, it will be necessary to change the will, since the details of the Central Bank will change.
For tourists, a bank certificate can replace cash checks. In order not to carry a bunch of bills with you when traveling around the country, you can issue a certificate. It can be sold in any branch of the issuing bank. If the document has not expired, then the calculation of income will be carried out only for the actual number of days of using the Central Bank at the “demand rate”. Another disadvantage is that not all banks have a developed network of branches throughout the country. And not every branch of the same bank can get such a document.
A registered certificate can be quickly restored if it is lost or stolen. For this purpose, banks have developed a procedure for issuing a duplicate. Third parties will not be able to cash out under such a certificate.
disadvantages
A bank money certificate is not involved in the deposit insurance system. That is, in the event of bankruptcy of a financial institution, holders of securities will not receive compensation from the insurer.
Interest income is taxed at a rate of 35%, just like a regular deposit. If the Central Bank provides for the accrual of income at a rate of 11%, and the refinancing rate is 9%, then the amount charged at a rate of 1.5% is subject to taxation. Today, banks set returns above the refinancing rate only for long-term certificates for a large amount of investments. So, having issued a bank certificate of Sberbank for three years, you can get up to 10% per annum. The larger the amount, the higher the rate.
Personal certificates are subject to personal income tax if the document has changed ownership, that is, in the case of inheritance, gift or transfer of securities to another person. In this case, the tax agent is the recipient of income. You can avoid paying income by submitting a payment to the Federal Tax Service confirming the cost of buying a security. Bearer certificates are not subject to any tax. This explains the high demand for them.
Terms of treatment
A credit institution may place certificates only after registration of the terms of issue in the territorial branch of the Bank of Russia. Certificate owners can be both residents and non-residents. To do this, it is enough to deposit cash into the account.
A non-bank certificate is the Central Bank, which does not indicate the name of the owner. Whoever brings the document, the bank must pay a fee to the holder.
In the 30s in Europe, the market for savings certificates was very rich. Documents were transferred, presented and sold all the time. But as part of the fight against money laundering, the terms of issue and cashing out of funds were tightened. And by the 70s, bearer certificates became a rarity. In Ukraine, for example, from December 1, 2014, the issuance of such securities was generally stopped. Previously sold securities were repaid by transferring non-cash funds to the bearer's account. Only registered certificates that are issued in national and foreign currencies with a maturity of more than 6 months remained in circulation.
Market conditions for 2017
Today, a bank certificate for corporate clients can be issued at Gazprombank, Uralsib, Vozrozhdenie Bank and Otkritie FC. Interest remuneration depends on the term and amount of the deposit. For example, Otkrytie FC offers its customers a certificate for three months, which provides for an income of 8.95%.Prominvestbank pays a similar fee if the amount is placed up to 1 million rubles.
According to the Bank of Russia, for the 1st quarter of 2017, more than 1,200 certificates were issued. The Central Bank is in great demand with a maturity of up to a year.
The timing | January 2017 | February 2017 | March 2017 |
Total certificates | 572 | 361 | 444 |
31-90 days | 130 | 34 | 23 |
91-180 days | 1 | 0 | 0 |
181-360 days | 55 | 9 | 209 |
1-3 years | 105 | 34 | 35 |
more than 3 years | 147 | 82 | 40 |
The issue of savings certificates is also slightly reduced. Russians prefer long-term certificates.
The timing | January 2017 | February 2017 | March 2017 |
Total certificates | 485 482 | 482 815 | 480 952 |
31-90 days | 62 | 0 | 10 |
91-180 days | 623 | 658 | 672 |
181-360 days | 42 210 | 40 404 | 42 539 |
1-3 years | 180 535 | 194 532 | 211 881 |
more than 3 years | 232 697 | 216 195 | 193 254 |
Term
A security is traded in the market from three months to three years. In this case, the extension is not provided. During the issuance of certificates, banks immediately consider the option of early redemption. In this case, the holder receives a nominal value, taking into account interest at a reduced rate. In practice, Sberbank, UBRD, Bars, Finservice and Expobank redeem such certificates at a rate of 0.01%. “CentroCredit” pays remuneration in the range of 3.5-6% depending on the initial term of investments. Intechbank applies the rate based on the face value of the Central Bank: up to 4.99 million rubles. - 3%, over - 5%.
Registration
Not all branches of even a large bank can issue a certificate. Therefore, the first thing you need to clarify on the website of the credit institution the address of the desired branch. A certificate holder can be a citizen over 14 years old. Non-residents can pay the Central Bank only by transferring funds from a card account to a deposit. For registration you need to provide a passport and any second identification document.
The certificate consists of a form and a spine. The first is issued to the client, and the second remains at the credit institution. You can invest in any amount within the specified range. In case of loss of the document, you should immediately notify the credit institution. Restore rights to an unnamed certificate will be possible only through the court. Identifying the owner of a registered securities is much easier. In case of damage to the form, funds will be available for withdrawal only after examination.
Market Offers
Sberbank was one of the first to issue certificates. Since February 2016, the issue of the Central Bank for corporate entities has been temporarily stopped. Today, the bank offers customers only bearer certificates. The minimum investment amount is 10 thousand rubles. Invest the amount less than 50 thousand rubles. for any period does not make sense. Coupon interest will be calculated at a rate of 0.01%. Having issued a deposit at least 51 thousand rubles. with a maturity of 3 months, you can get an income of 5.5% per annum. In case of purchasing a certificate for 36 months, the fee will be calculated at a rate of 5.35% annually. The maximum investment amount is not limited.
Another state bank, VTB, and all its structural divisions do not have certificates for individuals in the product line. However, credit institutions issue certificates for corporate clients of medium and large businesses and accept them for storage.
Profitability
Certificates are redeemed at a higher interest rate than regular deposits. Each credit institution independently sets and fixes the rate in the contract. Banks are not entitled to change it during the term of the document.
You can calculate the level of profitability of the certificate yourself. To do this, just use the following formulas.
1. Income = ((C1 - C0): C0) x (N / T) x 100, where:
- C1 is the final cost.
- С0 - initial cost.
- N is the number of days (months) in a year.
- T - the number of days (months) of ownership of the certificate.
2. Market price = NA + NAP, where:
- NS - the nominal amount.
- NAP - accumulated interest income.
3. Market price = NS x PD x (D: 365 x 100), where:
- PD - interest income.
- D - the number of days remaining until maturity of the Central Bank.
Here's how you can independently calculate the return on a certificate.