Name of account - current or deposit: differences, especially

For investments in the bank, there are many options. Which will be used by the account name - deposit or current? What is their difference? How to find out which one is used or need to be opened?

general information

A bank account is a certain sector of the accounting system where all movements of funds and transactions with them are recorded, which relate to a specific individual or legal entity. In fact, it is a tool that allows you to record all changes. According to the current legislation, clients have the right to open the necessary number of accounts in an unlimited number of financial and credit organizations if the latter agree with this. For their classification, four main features are used:

1. Used to account for cash.
2. It opened and conducted in-bank financial institutions.
3. Used to display the obligations of banks to their customers.
4. It is an integral part of the subject of the account agreement.

In the modern world it is quite difficult to do without this tool. But here's how you learn - deposit or current account or open only will be issued?

On the forms

In many ways the activities of credit and financial institutions are regulated by law. The following groups are distinguished:

1. Universal / special.
2. Depending on the currency.
3. For the intended purpose.
4. Without / with possibility of (partial) removal.
5. Depends on the owner.

Based on the purpose, they distinguish: deposit, current, transit, stock, check, private, fiduciary, loan, consolidated, savings, settlement, general, on-call, accumulative, depersonalized metal, correspondent, current accounts, cards, insured, frozen, currency, budget and trust management accounts. From all this list is of interest to us only two of them. So, what is the current bank account is different from the deposit?

The first answer

Current accounts open organization that does not have the status of legal entities. It branches, representative offices, branches, agencies and others. They are used for such purposes:

1. Work with salaries.
2. Costs and payments that relate to the fulfillment of representative functions of foreign insurance.
3. The content of the administrative apparatus.

The current account is an extremely useful financial tool, since it allows its owner:

1. To send the desired amount to third parties for the payment of goods or services.
2. Shift the burden of performing regular payments on bank employees.
3. Convert funds without cashing them.
4. Used to produce paper money cards.

If desired, they can even open an individual, if it is necessary to make payment transactions.

The second answer

Deposit (also known as deposit) account is used for storing available (temporarily) in cash. It can be opened by both physical and legal entities in the financial and credit institutions. At the time of conclusion of the contract, the bank accepts a sum of money that is obligated to be returned with interest payments on the terms and in accordance with the procedure provided for by the signed document. But to provide such a service as opening a deposit account can only those banking institutions that have the appropriate license, which allows you to raise money in rubles or another currency.This is done to reduce the incidence of fraud and loss of funds. This is the difference between a current account and a deposit account in general terms.

Conclusion of an agreement

It is difficult to imagine a company that does not have its own account. A bank can refuse a potential client only in cases stipulated by law, or if it is not possible to serve an individual or legal entity. The basis for the opening and subsequent maintenance of the account is the contract concluded. According to it, the bank is obliged to accept and credit all money received into the account, to fulfill the client’s instructions on their transfer and to issue the corresponding amounts from the accounts and to conduct other operations. For individuals, access to this tool is an order of magnitude easier than for organizations.

The latter are also required to report their opening to the Tax Inspectorate at their place of registration. After the contract is signed, the account holder can carry out any operations provided for by the concluded document and legislation. If the specific indication of what is opening has not been announced, then you can go a different way. Here is the name of the account is escrow or current - how do you know if you have only its number? It can be pretty simple. Each number consists of five parts. The first is formed of five characters, which indicate which type the account belongs to. It is on it that one should be guided, determining what was discovered. And if we have already touched on the topic of the issue, then let's consider it fully. The following three numbers indicate the currency in which the account was opened. The third part contains only one character, which is called the key. It is calculated using a special algorithm that takes into account all other numbers in the number. Then follows four numbers, which indicate the banking unit where the account was opened. And the last seven digits are the number itself, by which they are guided to search for the personal sector in accounting.

A little bit about the differences

Here's how to find out if a deposit or current account is open, as well as a lot of other information. But that is not all. Let's look at what the name of the account means - deposit or current, at the administrative level. In the first case, the owner expects to receive a certain benefit. And he cannot count on instant access to the entire amount. Whereas with the help of a current account you can get your money instantly if you want to pay for a product or service. Also, you do not have to count on a certain percentage, although they may be. But all charges go to a meager amount. To summarize, it should be noted such nuances:

1. Account mode.
2. Cost of operations.
3. The value of the percentage.

Deposit accounts are not used to transfer money, payments, pay for purchases and other similar moments to provide an opportunity for a financial and credit institution to calmly dispose of the funds entrusted to it for the period specified in the agreement. And it is precisely for this inconvenience that banks pay rather high interest.

About included components

What is the name of the account (deposit or current), we have already figured out. Now let's see what they consist of. In the case of the current account, it is becoming increasingly easy - there is a certain amount of money and the conditions for its use. It’s not so simple with deposits. They include a certain percentage of the rate, period, possibilities and conditions of replenishment and insurance. Let's look at some of the components in more detail. Term - this is the period for which the owner of the funds transfers them to the financial institution. The interest rate is the% that the bank accrues for using the borrowed money. Insurance - the money that is deposited, in the event of a bankruptcy of a financial institution, is returned to the depositor by a guarantee fund in the amount of not more than 1.4 million rubles.

Legislation

Many modern aspects of the work of financial institutions are regulated by documents adopted by the State Duma and individual executive bodies. Among the latter, the Central Bank of the Russian Federation plays the largest role, which determines the features of all commercial structures. By setting the size of the financing rate, and making a number of other decisions, they affect the interest at which funds are raised, as well as the intensity of lending. Consider a small example. If in our situation to lower the refinancing rate, the credit sector and the activity of current accounts will revive. If you pick it up, more people will perceive deposits as an attractive tool for saving funds and will use their services.

Conclusion

The topic does not end there. You can still talk a lot, specifically about these accounts, and about others that are available and permitted by law. But for the correct handling of concepts and to benefit from them, all the information described here is quite enough. A more detailed study of this topic is of interest except for people who plan to master a certain financial specialty.