Many Russians mistakenly believe that the concepts of bank deposit and deposit are identical. In fact, there are a number of differences between them. A deposit is a more voluminous concept than a deposit.
Deposit: main distinguishing features
The concept of a deposit comes from the Latin word "depositum", which literally means "a thing given for safekeeping." A deposit is money that has been transferred to a bank, usually for the purpose of making a profit. Thus, deposits are a special case of a deposit and differ in that they involve the storage of exclusively money. Whereas deposits can mean:
- cash deposits in the bank;
- securities (bonds, shares) and other assets (coins, precious metals); bank cells in which securities are stored are called depository;
- contributions to administrative, judicial authorities (for example, as security for a claim or a deposit to participate in a tender);
- contributions to customs authorities as security for fees and duties;
- an entry in the bank book, which confirms the requirements of the bank to the client.
The volume of deposits attracted by banks is increasing annually. According to RIA, last year they grew by 19%.
Contribution: main differences and features
In terms of prevalence in Russia, most deposits are deposits.
According to the Central Bank of the Russian Federation, the volume of Russian deposits in banks amounted to 16 trillion rubles. (as of November 1, 2013)
It should be noted that Russian legislation does not distinguish between the concepts of deposit and deposit. But in financial activities, the concept of contribution can be interpreted more broadly and used in other meanings. For example, as a contribution of the founders of an LLC to the authorized capital.
In the lexicon of many bank employees, the concept of a deposit is used in relation to funds of individuals, and a deposit is used in relation to legal entities (LLC, CJSC, OJSC), as well as funds and government institutions. If we turn to Russian legislation, such a distinction is legitimate.
The Federal Law "On Banks" provides the following definition of the deposit: "Deposit - funds in the currency of the Russian Federation or foreign currency, placed by individuals in order to store and generate income."
The law also states that deposits are accepted only by banks that have a license from the Central Bank of the Russian Federation to conduct business. Various non-banking organizations are not eligible to accept deposits. The money of the population in them is not protected by law, so it is worth treating such institutions with the utmost caution.
If deposits can be divided according to the types of products that are stored in the bank, then among the deposits can be distinguished term and demand deposits. Time deposits are distinguished by higher interest rates and a fixed storage period. Also, deposits differ in terms of interest accrual. For example, at the end of the deposit term, at certain time intervals, with or without capitalization.
On the Internet, you can often find the phrase "deposit". In fact, this use of words is a tautology and does not make sense.
