A deposit is a personal account that is opened at the request of a bank client. You can place an unlimited amount of funds on deposit accounts, while choosing the most profitable programs and terms.
The meaning of a deposit account
By opening a deposit account with a bank, the client independently chooses the conditions from the possible range of services offered. During the entire period of placement of funds, certain interest is charged in accordance with pre-agreed conditions. Deposit accounts can be opened not only by individuals, but also by legal entities.
The amount of deposits is not limited, but, as a rule, there are minimum amounts of deposits. You can open such an account at any time. The main conditions of the deposit are considered to be a strictly fixed storage period for funds and the inability to use funds by the client until the expiration of the agreement with the bank. In this case, you can regularly withdraw or accumulate interest. The funds placed in the deposit account are returned in full after the pre-agreed date.
Types of deposit accounts
All types of deposit accounts can be divided into two main categories - with the terms of the program "on demand" and "urgent". Each type of deposit has its own distinctive features, advantages and disadvantages. All the nuances, as a rule, are prescribed in the agreement with the bank. Before signing such documents, it is better to immediately carefully study all the conditions, and, if necessary, get additional advice from employees.
If you have savings and want to increase your income, then the best option may be to open a "time" deposit account. In this case, you should pay special attention to the main condition - you will not be able to withdraw funds within a predetermined period. It is convenient to use such an account if you are sure that you will not need the funds in the near future.
Demand deposit accounts have more flexible conditions, but interest rates on them are usually lower than those for fixed-term ones. In this case, you place funds on your account and can withdraw them in whole or in part before the period specified in the agreement.
Features of deposit accounts
You can open a deposit account using any currency available in the bank's circulation. In addition, each depositor is provided with a deposit insurance service, which implies the reimbursement of the entire amount of the deposit in case of bankruptcy of the organization.
Interest received from a deposit account is tax deductible. Such a norm is established and regulated by current legislation. When withdrawing funds, 13% is withheld. Accrual of interest, depending on the chosen program, can be carried out monthly, quarterly or with capitalization, when the accrued funds are included in the total amount of the deposit account.
