Deposit accounts in banks allow you to increase savings and regulate the distribution of your own finances. When choosing a deposit account, you should know the basic parameters and characteristics.
Main characteristics
A deposit account is a deposit of money at an interest rate and for a certain period of time. The depositor enters into an agreement with the bank, according to which it will be possible to withdraw his deposit not earlier than the term indicated in the agreement. Throughout the entire term of the deposit, the bank disposes of the depositor's funds at its discretion. The longer the term of the deposit, the usually higher the interest rate on it.
There are two types of deposit accounts: urgent and demand. A fixed-term deposit account is opened for a long-term storage in the bank. The owner of the account indicates in the agreement the term for placing the account and cannot withdraw his funds earlier. In case of early termination of the contract, the depositor is not paid interest accruals. Demand deposits provide for the possibility of partial or complete withdrawal of money. The bank accepts such deposits at a lower interest rate, since the depositor can withdraw his deposit at any time.
Having deposited money in a deposit account, the client cannot dispose of these funds, such as bank plastic cards.
Interest rate
The bank sets the interest rate, which can be reviewed before signing the agreement. The amount of the interest rate will be paid according to the agreement only after the expiration of the term, but on condition that the client does not violate the terms of the deposit. Many banks set the amount of interest depending on the investment, the larger the amount and term of the deposit, the higher the interest rate. Sometimes banks announce short-term shares, accepting short-term deposits at high interest rates. This is usually due to the fact that the bank urgently needs funds to carry out any profitable financial transactions. In this case, the bank is ready to increase the standard deposit rates in order to quickly attract the required amounts.
How to open a deposit account
In order to open an account, you should familiarize yourself with the various offers of banks and choose the optimal parameters. As a rule, small or little-known banks offer high interest rates.
It is not recommended to make long-term deposits in dubious organizations or in newly opened banks, even if the interest rate is the highest among all the proposals. Such organizations can be financially unstable and will file for bankruptcy at any time. In this case, the state undertakes to return the invested funds to the depositors, but not more than 700,000 rubles. To register a deposit, you must pay a visit to the bank. You must have money, passport and TIN with you.
