A deposit or deposit is money placed with a bank or other financial institution at interest on pre-agreed terms. At the same time, funds can be placed in cash or by bank transfer, in foreign or national currency.
Instructions
Step 1
In simple terms, a deposit is money that the depositor has lent to the bank. The conditions for keeping funds in a deposit account are stipulated in a deposit agreement or bank deposit agreement. From the point of view of civil legislation, there are no differences in the concepts of “deposit” and “deposit”. But, nevertheless, in banking, these concepts are somewhat different. A deposit is considered to be money placed in a bank, while a deposit can also be other values transferred for storage. For example, you can place precious metals and securities on a deposit. Thus, a deposit is one of the types of a deposit.
Step 2
Deposits are urgent and on demand. Time deposits imply the placement of funds for a predetermined period, before the expiration of which they cannot be withdrawn or can be withdrawn partially. However, in accordance with the law, the depositor has the right to withdraw funds from such a deposit. In this case, interest will be calculated at the rate of the deposit "On demand", unless otherwise stipulated by the deposit agreement. Time deposits are often called savings or savings deposits.
Step 3
Funds from deposits "on demand" can be withdrawn by the depositor at any time without any restrictions. However, the interest rate on such a deposit is extremely low. As a rule, it is no more than 0.1-1% per annum.
Step 4
Deposits can be replenished, i.e. there is a possibility for depositing additional amounts of funds, and non-refillable. Some deposits also involve a partial withdrawal, when the depositor can withdraw part of the funds from the account without losing interest. In this case, a minimum balance is set for the deposit - the amount that must always be on it. Deposits for which replenishment and partial withdrawal of funds are provided are called deposits with debit and credit transactions. As a rule, interest on them is lower than on deposits that do not provide for such operations.
