Interaction with banks has become commonplace and daily business for many of us. Payment of bills, salaries, scholarships, pensions, transfers and other operations become the reason for the arrival of a particular financial institution in the department.
This is a great moment for bank managers and they begin to offer various services: loans, deposit accounts, insurance, etc.
Many visitors are interested in deposits, because they allow you to save and increase your capital. But it’s quite difficult to figure out all the intricacies of a certain banking product on its own. From this article you will learn what a deposit account is, its types and average rates, as well as how to choose the right bank for cooperation.
What it is?
First, let's analyze the concept of deposit. This is a bank deposit, which is carried out on certain conditions. At the same time, the person who posted the money is their owner, and the bank acts as a party that undertakes to keep funds and pay a certain amount of money for it.
It is hard to believe, but during the inception of the banking system, savings organizations not only did not pay, but also received additional income from depositors. Then the main goal was to give someone their gold or other valuables in their hands for storage. Since there were many who wished, and “bankers” were somewhat fewer, we had to weed out insolvent people.
A deposit account is an urgent bank account. It opens after the signing of the contract by both parties (financial institution and client). Speaking about the fact that a deposit is open in a bank, they always mean opening a deposit.
After the contract expires, it is closed, if no extension was provided. If the parties have agreed to automatically renew the contract, the bank does not close the deposit account. In this case, the contribution is poured for a period similar to the past, but at the current rate on the day of extension.
How to open such a contribution?
Depending on the type of deposit, various documents may be required to open a deposit account. For the bulk, only the original passport, as well as the identification code, are sufficient.
Depending on the range of services provided, the bank may offer deposits for certain categories of citizens, which is why the list of necessary documents may change. For example, programs designed for seafarers imply the obligatory presence of a sea passport when applying for them.
To conclude deposit agreements on programs for older people, bank employees must require a pension certificate.
Opening of deposit accounts can occur both in a bank branch, and through the Internet or a special mobile application. The process itself takes about 5-10 minutes.
Bets
The financial services market is free and competitive. In this regard, banks pursue their own policies, which is displayed on the terms of loans, deposits, etc.
Accordingly, deposit rates at each financial institution are different. The larger and more systematic the bank (it implies an expanded network of branches and subsidiaries, including in other countries), the less it is willing to pay interest to its customers for the funds placed by them.
This is due to the fact that the reputation of those banks that have several dozen branches, have long been working or are part of an international group, is at a high level.Consequently, some customers will turn a blind eye to lower rates than in the market, taking care of the safety of their savings.
Don't fall for the trick
Meanwhile, small financial institutions are trying to “attract” people to themselves as quickly as possible. This is due to the high deposit rates that they offer. However, it often happens that new banks close after 2-3 months without returning their money to depositors. Therefore, you need to think several times before giving your little-known financial organization your money.
To date, the average rate on fixed-term ruble deposits is at the level of 7-8%. And the money on the deposit account in foreign currency will bring much lower income - 0.5-1% for one year of the contract.
Choose the right bank
Unfortunately, many people who want to put their money on deposit are guided exclusively by the level of rates. This is a gross mistake that can cause you to lose capital.
First of all, you need to narrow the circle of banks to those that have a share of state capital or are included in large international groups. Such financial institutions are more stable, and also do not react so painfully to worsening market conditions.
Further, in order to weed out banks in crisis, we deduce the average rate on the deposit of interest to us. Those institutions that offer rates that differ significantly from the number received (more than 10%) should be deleted from the list of possible competitors.
Pay attention to loan offers
It is no secret that the main earnings of the bank are mainly the commission for settlement and cash services, as well as the income determined by the difference between deposit and credit rates. If the margin between these indicators is low, then we can talk about the problem situation that the bank faced.
Having thus reduced the list of applicants, it is worth familiarizing yourself with the conditions under which deposit accounts of individuals and enterprises are opened.
An important point is the reviews of existing or former customers of a financial institution. By comparing the characteristics of deposit products, you can choose the most suitable option for you.
In the event that you could not decide and make a choice, then you can prefer several banks at once. How? It is enough to divide the deposit amount into 2-5 parts. And if you want to reduce the risk of depreciation of capital, then you can exchange rubles for foreign currency, for example, for euros or dollars. By doing so, you can be almost 100% sure that after a certain time your money will return to you.
