Deposit and deposit: what is the difference between them? How much do they differ? Why were different concepts introduced? What goals were pursued? What and when is more profitable? Which concept is significantly larger? And why? All this and more will be discussed in the framework of this article.
general information
Man is inclined to preserve and increase his savings. This property stretches from the depths of centuries. The development of financial institutions ultimately led to the emergence of banks, as well as a number of other institutions where money can be put at interest and make good profit. The main tools used for this are deposit and deposit. What is the difference between the two? At first glance, it is not, so the words are used as synonyms. But it's not right. Understanding the difference allows you to competently manage available resources, save and increase them. But this is what interests us, right? So what are they? What is the difference between them? And how to understand it, so as not to lose, but to gain?
We deal with terminology
Best of all, in general terms, the difference between a deposit and a deposit will be clear, you only need to consider the meaning of these words. So, a deposit is money and other values (precious metals, stocks) that are transferred to banks by individuals or legal entities with the condition of receiving a subsequent fee or simply for storage. All individual points are stipulated in the corresponding contract, what is between them.
The owner of the account the proceeds of the money can dispose of their own free will. With a contribution a little different. Under it is understood exclusively monetary funds that are contributed by a specific person for taking part in management, making a profit, interest or for simple storage. Deposits are without / reimbursable. In colloquial speech, a similar word can be used to denote the sum of resources (mental, labor, material) that a person invested to achieve a common cause. This is what a deposit and a deposit are. What is the difference, in general terms there are already no questions. But let's examine some points. After all, as you know, the devil is in the details.
We understand the moments
It should be recognized that the difference between the deposit and the deposit is not very large, and these words are extremely close in meaning. But before talking about various points, I want to note one especially important one. The term “deposit” is almost completely included in the concept of “contribution”. And there are a number of limitations. So, a deposit account is allowed to be opened exclusively at banking institutions that have been registered in the prescribed manner and carry out their activities within the framework of legal grounds. The money placed on it, as a rule, brings its owner a profit, which represents interest on the use of funds. Although it is possible that they will not be. In this case, they say that the depository is open. In contrast, deposits can be transferred to both financial institutions and non-banking organizations. It is always deposited in hard currency and represents cash that is transferred to a particular commercial enterprise. But on a deposit (remember that it is still not fully included in the concept of a contribution), securities and valuables and other assets can also be made. Here is, in short, their main difference. But there are still details that were not mentioned in the discussions about what constitutes a deposit and a deposit. What is the difference between them at the administrative level?
Subtotals
Before continuing the article, it is necessary to outline the most important points:
- Volume of concepts. We already know that a much broader meaning is embedded in the word “contribution”. But it does not completely absorb the “deposit”.
- The form. If we talk exclusively about financial institutions, then a deposit always means exclusively money. Whereas a deposit is assets, securities, and jewelry.
- Purpose of use. The main task that the deposit solves is to save and increase money, making a profit. While the contribution may be charitable, not involving commercial use.
- Returnability. Deposits are always made on the basis of a certain fee for the agreed time of use. Whereas the contribution can be transferred without requiring a return.
- Profitability. If we talk about commercial deposits for which repayment is provided, then a prerequisite for their provision is profitability. Whereas the depository can be issued without such a requirement.
Speaking about deposits and deposits, what is the difference between them, it is difficult to ignore the administrative differences.
At the conclusion of contracts
If a deposit is opened, then it indicates:
- Placement term.
- Possibility of replenishment / early withdrawal.
- The minimum amount of investment.
- Interest capitalization.
- Partial withdrawal option.
- Interest rate.
- The procedure for payment of the deposit amount and “accumulated” funds.
The contribution, as previously mentioned, can be made not only with a banking institution. Therefore, the rules for its design fluctuate in a very wide range. Both of these tools have their own subjective preferences, which vary depending on the goals that are pursued by an individual or legal entity. Rates on deposits and deposits vary depending on the riskiness of the chosen path. Let's look at this aspect in more detail.
Selection specifics
Contribution is a promising way to increase your savings. Whereas deposits are more aimed at preserving assets from depreciation (for example, money from inflation). But when deposits are placed not in banks, where in case of problems a person can apply for insurance, but in other institutions, then in the event of negative trends, the probability of a refund is not high. Therefore, you have to choose between the possibility of good earnings and the safety of funds. Yes, of course, banks can go broke too. But in this case, if the deposit amount does not exceed 1.4 million rubles, then the individual or legal entity will receive a full refund from the deposit guarantee fund. But when investing in enterprises, there is no reason to hope for such or a similar security tool.
What are the types of deposits / deposits?
Consider the example of banking institutions. You can transfer to a deposit:
- Cash.
- Stocks and bonds.
- Futures.
- Various securities.
- Precious metal bullion.
Deposits can only be made in hard currency. When working with banking institutions, there are:
- Poste restante. This option is suitable for those who want to ensure the safe storage of existing money supply. A small percentage is accrued on them (in some cases, it is completely absent). But you can withdraw money from such a contribution at any time.
- Urgent. This banking product has a significant interest rate and investment duration. The larger the period, the higher the accrued%. As a rule, they give a gain of several percent compared to inflation.
This is the difference between a deposit and a deposit in terms of its species diversity.
Where to invest money?
If we talk about rubles, then in this case we should rely solely on a small overlap in inflation. And if a collapse happens like what it was in the 90s of the last century, then all the modest gain received will be lost.If you have knowledge, information and patience, then you can try yourself in securities and / or precious metals. The latter option is long-term, and you can’t count on significant profits in a short period of time. But on the other hand, gold is a reliable and very liquid asset. Inflation cannot undermine its value. But to invest in banking metals, you must have a significant initial amount of money. And to save it, ordinary cash deposits are quite suitable.
But when investing, care must be taken - if the structure offers a very high percentage of the market, then it is likely that it is not doing well, and it has seriously taken care of increasing its own liquidity. Here are just a few chances to safely get out of this situation. If a bank goes bankrupt, you can at least claim your money (no interest). If another commercial structure goes bankrupt, then it will be difficult to count on anything at all, except for the proceeds from the sale of its property and property. Indeed, for any investment, it is necessary to adequately assess the associated risks that arise.
Finally
So, deposits, deposits, their specificity and peculiarity, as well as differences, were considered. Although within a certain area they can be used as synonyms (for example, in relation to banking), but they are still quite different, therefore, they should be used carefully. In general, one could talk about many different aspects, such as “state contributions to the development of projects, the economy, communications, and so on from the category of public administration”, “charitable investments” and other rather interesting points, but this will already be quite strong go beyond the topic. That's all, thank you for your attention!