Since time immemorial, people have shown a tendency to accumulate and increase their funds. Modern financial institutions help citizens save money. To do this, in their arsenal there are a number of investment instruments, the most popular of which are deposits and deposits. But most citizens, due to financial ignorance, do not distinguish between the two means of accumulation. Is it correct? How is a deposit different from a deposit?
Understand the concepts
The main forms of bank investments - deposit and deposit - are often perceived as synonyms. In fact, these are two different financial instruments that have many differences. The deposit and the deposit pursue different goals and have different contents.
The reason why citizens do not distinguish between these concepts, according to experts, is financial illiteracy. Future investors and deposit holders do not fully understand the essence of the investment instruments that they plan to use. As a result, they misuse resources and hinder the effectiveness of investments themselves.
So what is the difference between a deposit and a bank deposit? To understand the differences, it is necessary to fully understand the essence of each of the financial instruments separately.
What is a deposit?
A deposit is tangible assets (money, precious metals, stocks, bonds) that are transferred to the bank for storage on the basis of an agreement. A deposit holder can be both a legal entity and an individual. At the end of the storage period, the holder may receive a fee if, under the terms of the contract, the bank had the right to manage values.
Deposit may be called storage of values not only in the bank. So, there is a customs deposit, with the fulfillment of obligations for the delivery of values. Thus, this is ensuring the safety of resources by any institution. We pass to the second concept.
What is a contribution?
A contribution is the amount of money that is transferred to a financial institution in order to profit from them. At the same time, the financial institution itself has the right to manage funds for its own benefit. There are several types of deposits, including gratuitous.
What is noteworthy, this concept does not exist in English, unlike a deposit. Contribution is a Russian word, which sometimes denotes the resources used by a person to achieve a goal. It is not only material, but also abstract - mental or spiritual.
To understand how a deposit differs from a deposit, you need to learn that a deposit is a broader concept, and a deposit is only one of its forms.
How is a bank deposit different from a deposit?
To learn how to properly manage your own resources, you need to understand the differences between the two concepts. In the future, this will help to avoid conflict situations and unjustified expectations, as well as get the maximum return on investment.
To do this, consider a concrete example in the field of banking services. For example, how does a deposit differ from a deposit in Sberbank? It turns out that this financial institution offers a wide range of deposits for individuals with various conditions for managing funds and an appropriate range of interest rates that provide income from investments.
At the same time, Sberbank deposits are represented by a wider range of services. This list includes:
- cash deposits for legal entities, private entrepreneurs and individuals engaged in private practice - notaries, lawyers;
- opening custody accounts for securities accounting;
- storage of securities, accounting of ownership of documentary and non-issuing values;
- conducting operations with securities that require a deposit, including operations to transfer collateral, including subsequent storage and accounting;
- rental of safe deposit boxes for storing valuables;
- opening depersonalized metal accounts;
- other services.
Summarize
So how is a deposit different from a deposit? The main differences are in the following characteristics of both concepts:
- The scope of the concept. The meaning of the word deposit is wider, contribution is one of the types of deposit.
- The form. A deposit involves several forms of investments or services. A bank deposit is only a savings of money, drawn up in the form of a bank savings account.
- Purpose. The main purpose of the deposit is safety. The contribution is intended to provide income from investments.
- Profitability. An obligatory condition for the deposit will be the accrual of a certain percentage on the balance of the investment amount. A deposit does not always imply a fee, for example, when storing securities (depository).
So, we learned how a deposit differs from a deposit. Which investment tool is right for you - decide for yourself.
