What are deposits of individuals. Bank deposit - what is it: analysis with examples

The first law of the financial sector says that money should work to increase. The most profitable and correct way to put money into circulation is to make a deposit in a bank. This is not only a method to secure your money, but also an opportunity to receive a constant income (percentage).

Deposit - what is it?

In order to characterize such a monetary transaction as a deposit as correctly and simply as possible, one must turn to financial terminology. A deposit is a special kind of loan. If consumer is a bank loan to a client, then bank deposits are loans that customers voluntarily provide to their bank, with the condition of receiving interest.

Such a financial transaction is mutually beneficial for both parties, both the depositor and the bank. Saying what a deposit is, the investor gets the opportunity to:

legally put free funds into circulation;
get a money security guarantee;
use the interest rate.

The bank will be able to:

increase your financial turnover;
increase the volume of credit funds for the needs of the population;
strengthen its position in the financial market.

Deposit - the bank's debt to the depositor, and is subject to mandatory return of funds to the owner after a certain time. Before taking your money to the bank, decide what kind of deposit you are interested in. You need to know what distinguishes a simple deposit in a bank at interest from a deposit.

What is the difference between a deposit and an investment?

The deposit includes a voluminous definition, and the deposit is one of its main varieties. The first difference between a deposit and a deposit is that only cash can act as a loan. That is, a bank client opens an account, deposits a certain amount of money into it and puts it at the disposal of this banking organization for a strictly defined (or indefinite, on demand) time. For the period of the specified storage period, the bank reserves the right to dispose of these funds at its discretion.

Types of deposits

A bank deposit has several varieties depending on the terms of the agreement between the financial institution and the client. So the bank can offer the placement of money with the condition:

savings deposit - deposit with replenishment;
line savings deposit;
deposit with condition on demand;
savings;
multicurrency deposit;
deposit with capitalization;
security deposit;
pension;
investment.

Each type of contract has both its own characteristics and its own nuances. Before giving preference to one or another type of investment, it is worth studying in more detail what rights and obligations the client (depositor) will have, and what advantages and rights the bank itself receives under such an agreement.

Savings deposit

If we consider all profitable deposits in banks, then a savings deposit is a good alternative to a term one. It differs from the first option by the ability to make constant “infusions” of funds into the main account - a deposit with replenishment. That is, by placing a certain amount in the bank at interest, the client, at his own discretion, can gradually increase the body of the deposit by placing new deposits on this account.

In this case, the condition of placing money for a period strictly specified in the contract or for a period on demand also applies. The only caveat is that the client undertakes to constantly replenish the account for a certain amount (more, but not less) specified in the contract. The rate on such a deposit will be different depending on the conditions that the bank provides to the client.

Short term deposits

Among all the products that the bank will offer, you should pay attention to another profitable deposit - a short-term one. The peculiarity of such a contribution is its validity period. It involves the placement of a large amount of money for a very short period of time. The main idea of such a deposit is an opportunity for the client to secure a large amount of cash between serious cash transactions. Most often, such a deposit is used by the population:

if you want to quickly get additional income from a large amount of money;
secure a large amount of money from thieves;
when selling or buying expensive movable and immovable property.

The operation is easiest to follow in this example. An individual carries out a transaction for the sale of an apartment. Payment is made in cash, that is, a person has a large amount of cash in his hands. It is unsafe to keep how much cash at home and then the client comes to the bank with the intention of making a deposit. If in the near future, the depositor has to make a large purchase, it will not be profitable for him to conclude an agreement for a certain period, and then the bank provides him with a product, under the terms of which the client can open an account for several days.

Demand deposits

Another popular type of cash turnover through a bank is making money on deposits. So, in the presence of a large amount of money, the client can open an account and make a deposit on the condition that you can use the finances at any time. Such a deposit is especially popular as one of the varieties of a term savings deposit or a capitalized deposit. So the client, who has deposited a large amount of money into the account, at interest, after a while has the opportunity to withdraw or add a certain amount.

Such a banking product is convenient if an individual, in the presence of a large amount, does not plan to make a large purchase in the near future. The money is on the account in its original form, the client can add (well, or not add) funds to the account, but be able to withdraw interest at any time. It is possible to use all or part of the deposit at any time at your own request.

Advantages:

no restrictions on the amount of the deposit;
complete freedom of action for the client.

Flaws:

conditions are unfavorable for small amounts;
interest rate is low.

From the financial point of view, such a product will be beneficial for the client only if a very large amount of money is placed. With a modest deposit amount for interest accumulation, it is worth choosing another banking product. A demand deposit will be convenient for long-term savings or as a children's deposit “until the age of majority”.

Savings deposits

Understanding the question of what a deposit is, you should pay attention to one more type of service. Such a banking product as a savings deposit is beneficial only when a large amount of money is placed on the account. In this case, the goal of the depositor is the interest income from the deposit. The body of the deposit must be stable during the period specified in the contract. Such a deposit cannot be withdrawn from the bank at any time, only at the expiration of the term under the agreement. This choice of deposit requires strict adherence to the rules.

Multicurrency deposit

It is important to know what a multi-currency deposit is. The unstable position of monetary units makes banks look for and create new profitable offers for customers. So a multi-currency deposit will allow the client to use the currency conversion inside the deposit at his own discretion. Financial practice shows that foreign currency deposits are the most profitable investment.

Deposit with capitalization

Term savings deposit - belongs to the category of the most convenient and easiest options for the client to place money in a bank at interest. The main advantages of this choice include:

the client's ability to monitor all transactions with the deposit;
the right to dispose of the deposit at any time at its discretion;
receive a higher interest from the bank;
the ability to withdraw money at any time;
interest is calculated on the real amount on the account (constant capitalization of interest).

The condition of constant capitalization of interest is the most profitable deposit if the client does not withdraw funds and accrued interest for a long time. Then, with a gradual increase in the body of the contribution, the percentage also increases. As the amount on the deposit account increases, the amount of interest accrued also increases.

Security deposit

To fully see the picture of the collateral policy, you need to have an idea of what a deposit means, in which the body of the deposit is not just cumulative, but also with a safety deposit. So, it is easiest to define a security deposit using a specific example. More often this type of deposit is used when renting housing or other movable and immovable property. Owner, landlord, in order to insure their property against the human factor (damage to things, non-payment of utility bills, etc.).

Pension deposit

There are options when a person needs to use long-term deposits. What is a pension deposit - such a banking product can be formed over several years. This is the most profitable deposit with replenishment. A few years before retirement, a bank client opens a savings deposit account, to which permanent deductions are made from a payment card (salary).

Upon retirement, the client has the right to:

use your contribution at your discretion;
add the body of the contribution at your discretion;
just withdraw interest once a month.

The pension deposit may also imply the deduction of interest once a month to the client's pension card. Such a choice of deposit requires careful familiarization with all the conditions offered by the bank. It is important to pay attention to the conditions of deposit insurance. The risk is that the bank may "burn out" and then only a well-designed insurance will save the depositor's savings.

Investment deposit

If a client is interested in the question of how to make money on deposits, then the bank provides him with the following product - an investment deposit. This is a relative innovation in the post-Soviet financial market. The basis of such a deposit is that the usual conditions include conditions under which the client assumes the obligation to acquire a unit of an investment fund. The advantage of such a deposit is that if the market is in growth, then the client is in income, but if the market is in decline, the client loses money. Such a choice of deposit is acceptable only if the client is aware of both the advantages and risks of playing on the stock exchange.

) knows everyone who applied to a banking institution to open a deposit. The term "bank deposit" means the amount of money or securities transferred to the bank for storage and income in the form of interest accrued on the deposit for a certain period. Also, the term “deposit” can be understood as monetary contributions to the account of any organization (customs, judicial or administrative authority) with the right to return - for example, deposits for participation in an auction, contributions that secure a statement of claim or appearance in court.

Deposits for individuals

A bank deposit is one of the most reliable, but also one of the least profitable forms of savings for individuals. When opening deposits for individuals, a banking institution concludes a deposit agreement with them. In accordance with this agreement, the banking institution undertakes not only to return the amount of money accepted for storage after a specified period, but also to accrue interest on it in the prescribed manner. The accrual of interest on the amount deposited in the bank starts from the day following the conclusion of the deposit agreement. Many banks provide for the possibility of early termination of the deposit agreement.

Deposit rates

Interest rates on deposits are calculated for a certain selected period of time, and not monthly. The higher the interest rate on the deposit, the better for the depositor, however, only the size of the interest rate cannot be the main criterion for the profitability of the deposit. Many banking institutions provide for the possibility of replenishing a bank deposit during the entire term of the deposit, which significantly increases profitability. However, this mainly concerns deposits with a low interest rate. As a rule, banks do not allow additional replenishment of profitable deposits with a high interest rate.

Interest on deposits

Interest on deposits can be calculated in two different ways - with or without interest capitalization. Interest capitalization means the ability to add already earned interest to the initial deposit amount. Capitalization can be carried out monthly, quarterly, at the end of the deposit term, as well as on exclusive individual terms, for example, twice a month. Interest on deposits can also be calculated in two different ways - credited to the same account with the principal amount of the deposit and transferred to a separate account opened specifically for interest.

Profitable deposits

Depending on the current economic situation, the most profitable deposits can be both deposits with a fixed interest rate and deposits with floating interest. The fixed interest rate remains unchanged during the entire term of the contract and can only be changed under predetermined circumstances (early termination or prolongation). The floating interest rate of deposits may change during the entire term of the deposit under the influence of the conditions agreed in advance in the agreement - fluctuations in the exchange rate, changes in the refinancing rate, and so on.

Deposit for a year

The term of a bank deposit is a fairly significant parameter that affects the final degree of profitability of the deposit. Often it is a deposit for a year that offers the highest interest and attractive conditions, but requires a fairly large initial deposit amount. Such deposits with terms ranging from one month to three years are called "term deposits". In an extremely volatile and unstable economic situation, such deposits are becoming more and more in demand and popular. The advantages of term deposits include ease of use, reliability and a fairly high percentage. The disadvantages include the inability to withdraw funds ahead of time without losing benefits.

Large amounts of money should be kept in the bank in order to create security and safety of funds, while additionally you can get a good profit, depending on the amount of the deposit. This article will discuss what a bank deposit is and how to open it.

The concept of a bank deposit in simple words

A deposit is a bank deposit, which is placed in a bank on the conditions of storage and interest accrual agreed in advance by the agreement. The client can invest his own financial resources in state or commercial banks for a certain period of time. At the same time, the financial institution makes interest deductions for the use and storage of funds, which are added directly to the total amount of the deposit, and can also be transferred to the client’s personal account at his request.

Both legal entities and individuals can open their own account with deposit accruals. It is worth noting that not only banks are engaged in processing deposits - some microfinance organizations also provide this service, but customers are not always ready to trust such institutions with large amounts and prefer to create deposits in trusted banks.

In fact, a deposit is a contribution, but the difference between this concept is that in addition to cash, you can use additional banking assets in the form of valuable metals, profitable shares, and so on.

Types of bank deposits

The bank deposit is represented by several types. The client can open it in several forms:

Cash account. It is the most popular and demanded form of deposit, when the depositor deposits funds into a personal account and receives a fixed amount of interest in accordance with the conditions specified in the agreement.
Metal account. When opening this deposit, the depositor makes a certain amount, which the bank then "transfers" into precious metals - gold, silver, platinum. Interest is calculated in accordance with the current exchange rate of the value of the metal chosen by the depositor.
Standard safe deposit box. The client is given a special key to the cell, in which any valuables, as well as important papers, can be stored. This deposit is carried out without interest, its essence lies in the safe storage of valuable property of the client on certain conditions.

How is interest calculated on bank deposits?

The procedure for calculating interest may vary for some banks, but there are general principles that the client needs to pay special attention to before making a deposit. There are certain types of interest rates that have some differences:

"Compound" interest accrued with capitalization

The interest rate can remain fixed, and can also change from a single threshold value. The total amount of interest is added directly to the body of the deposit. The accrual procedure occurs necessarily at regular intervals. At the same time, capitalization of interest occurs in the new period - funds are accrued additionally on the amount of interest that has "run in" for the previous period.

Capitalization can be monthly, quarterly or annual, depending on the conditions offered in the contract.

Calculation of the final amount of the deposit can be done according to the formula:

S = C x (1 + % x d/g)n,

where S is a value representing the final amount of the deposit after interest has been calculated;

C - deposit body - the initial amount provided to the bank;

% - the rate prescribed by the contract / 100;

d - the total number of days after which capitalization should take place according to the contract;

g is the sum of days in a year;

n is the total number of stipulated capitalization periods.

"Simple" interest accrued without capitalization

The interest rate on the loan here remains fixed. The total amount of interest can be accrued monthly or by the end of the term of the deposit being made - in this case, accruals occur in a single amount and are not summed up with the body of the deposit.

The client can at any time use the amount of accrued interest, which can be transferred to a personal card account. Calculation of the amount can be done using the following formula:

where the value of P is the total percentage amount accrued on a personal deposit;

S - fixed amount of the deposit itself;

Ср - the exact term of the deposit, calculated in days;

% - standard annual interest on the current deposit prescribed by the agreement;

365(366) - the number of days in the current year.

What affects the interest rate?

Interest rates in different banks differ significantly. The amount of interest on deposits can be influenced by various criteria, among which experts identify the most important:

the presence of constant competition between banks can lead to an increase in the amount of interest accrued on the deposit;

The need to replenish the bank financial fund. With an increase in the number of loans to the population, the bank needs additional funds and begins to attract depositors with the help of increased interest on deposits;
New financial institutions may raise interest rates in order to attract investors. Large popular banking organizations rarely raise the percentage to 8-9%, attracting customers only with a high reputation and relative reliability.

Also, the amount and interest rate can be influenced by the types of deposits - for example, for fixed-term deposits, there is always a higher rate.

Types of bank deposits

There are several standard types of deposits that have their own distinctive features. Allocate varieties of deposits by term, as well as by target criteria.

By deadline

Deposit "on demand"- this type of deposit involves a reduced interest rate, since the client can withdraw funds from his personal account at any time.
Term deposits. Cash can be kept in a banking institution for up to 12 months - short-term, and up to 36 months - long-term. The interest rate here is significantly increased, but the client is limited in his rights and cannot withdraw personal savings until the end of the contract.

By goals

Savings deposit- the depositor can transfer a limited amount of funds several times a month. A deposit account allows you to significantly expand the amount of the deposit.
Savings deposit. The client can put a certain amount into the account in order to save savings.
Target deposit- this type of warehouse is opened mainly by parents for their children in order to further pay for their studies at the university. In this case, it is necessary to provide a document confirming that the training is carried out on a paid basis.

Currency deposits

This type of deposit assumes that transfers can be made to a personal account in foreign currency, as well as in rubles, while the bank can independently convert funds depending on the current exchange rate.

It should be noted that compared to ruble deposits, this type of deposit involves a small interest rate.

Terms of deposits

Terms of deposits differ significantly from financial institutions. But there are general criteria for determining standard criteria that are prescribed in the contract of any bank. The main points are:

The main interest rate on the opened deposit;
The maximum possible deposit amount;
Standard terms, payment procedure stipulated by the agreement, as well as capitalization of interest;
Possibility of further replenishment of the account;
The possibility of early closing of the deposit, as well as its prolongation under the contract.

Before opening a deposit, clients should study in detail the conditions offered by banks under the agreement and choose the most advantageous option.

Security and deposit insurance

To protect the funds on deposit, special insurance conditions are provided. The deposit insurance system is the best solution for clients of those banks that cannot always fulfill their obligations to depositors in the event of bankruptcy or premature revocation of a license. In the event of force majeure situations, deposit holders can receive funds from a special fund, which is formed at the expense of insurance contributions.

Taxation of deposits

Dividends received from a deposit may be taxed if the rate on it exceeds the refinancing rate set by the central bank. Some types of deposits are subject to mandatory taxation - this is a ruble, currency, and metal deposit.

Previously, ruble deposits were not taxed, but since 2016 a taxation system has been introduced, in which if the deposit rate exceeds 13%, the tax is mandatory.

With regard to foreign currency deposits, this deposit is taxed if the standard rate exceeds 9%. In 2018, all metal deposits are subject to taxation if they are closed earlier than after 3 years. In this case, the client is obliged to independently contact the tax authority as soon as he cashes the account.

Pros and cons of deposits

Main advantages deposits are as follows:

Constant increase in the total amount of the deposit due to accrued interest;
Funds cannot be withdrawn earlier than the period specified in the contract - this allows you to refrain from unnecessary expenses and accumulate the necessary amount;
Some types of deposits suggest the possibility of regular replenishment of the account;
In a short time, you can significantly increase the amount of the total contribution.

Flaws:

There is always a risk of unexpected bankruptcy of any financial institution;
The standard interest rate is relatively low;
In case of early withdrawal of funds, the bank ceases to accrue interest on the main deposit.

How to open a deposit - instructions

In order to open a deposit, it is necessary, first of all, to decide on the deposit product, as well as directly with the financial institution where the deposit will be made. Next, you need to contact the bank office and provide a standard package of documents:

sign an application for opening a personal deposit account. The form of this document is developed by each bank individually, so it is important to apply for a form at the office of the institution;
It is necessary to submit supporting documents in the form of a passport, as well as additional documentation, the requirements for which differ from bank to bank. Some banks offer to additionally present a military ID, a pension certificate, as well as a residence permit. For legal entities and individual entrepreneurs, a separate list of documents is also provided, which is established individually by a banking institution. Before submitting an application, you must contact the company's website and find out information on all the necessary documentation that will be needed to open a deposit.
Next, an agreement is signed, which reflects the main obligations of a banking institution, as well as the rights of the client. Also, the agreement reflects the standard controversial issues on deposits, as well as the possibility of their early termination.

When signing the contract, it is necessary to take into account all the nuances, since it is here that the main requirements for the deposit and the amount of interest accrued are reflected.

What is a deposit

Greetings to all, dear readers. I was surprised at the weekend like never before.

For all the years of her life, my grandmother was indifferent to what was happening in the world around her. But not this weekend.

Imagine, she gave me an interrogation with an addiction about a bank deposit - what is it and what benefits can she, my granny, get from her savings, which she has been accumulating all her life.

I had to tell everything in great detail. And to you, dear friends, I will tell you everything now.

What is a deposit and why is it needed

A deposit is money transferred to a bank for storage, the terms and conditions are specified in the contract. There are fixed-term and demand deposits. For the use of the depositor's money, the bank pays a monetary reward in the form of interest.

The term "deposit" refers to the money that you transfer to the bank for safekeeping. They are subject to return on time and under the conditions specified in the contract.

Deposits can be divided into two categories, depending on the term - time deposits, and demand deposits.

A demand deposit means that you can withdraw your money from the bank at any time - transfer it to the account of another person, company, or cash out through the bank's cash desk or ATM. Funds in your account belong to this category.

Term deposits, in turn, can be divided into several categories - long-term, medium-term, and short-term. A long-term deposit implies a period of placement of funds that exceeds 9 months.

Medium-term - from 3 to 9 months, short-term - from 1 to 3 months. If you put money in the bank on the terms of a term deposit, you can pick it up no earlier than the period specified in the contract.

And what is the point of transferring your money for safekeeping to strangers? Let's leave out all the disadvantages of keeping cash in the mattress, under the pillow, and stockings, and get straight to the point.

For the fact that depositors trust the bank to use their funds (which it briskly distributes in the form of loans), the bank pays depositors a monetary reward in the form of interest.

That is, the money in the account brings income to its owner. There are quite a lot of types of interest accrual - at the end of the deposit term, throughout, with and without capitalization. Let's consider them in more detail.

The interest that the bank charges at the end of the deposit term is simply added to the deposit amount before the client withdraws it from the bank. For example, if you placed $500 for a year, at 10% per annum, then in a year you will have $550 in your account.

In the same way, interest is calculated on the money that is in your current account. At a certain time, the bank's system checks the amount of funds in your account and calculates interest on them.

Interest is calculated based on the interest rate that is currently in effect (which, by the way, is several orders of magnitude lower than the rate on time deposits).

The amount of interest that has been accrued appears on the account once a month. Interest can also be calculated quarterly, semi-annually, yearly, etc.

The amount of the deposit remains unchanged, but you receive a stable income. The above example refers to the method of calculating interest without capitalizing it.

Capitalization assumes that interest is added to the amount of the deposit, and in the next period, interest is calculated already on the amount of the deposit + the amount of interest already accrued.

The difference at first glance is insignificant, but if the amount of the deposit is serious, then the capitalization of interest will turn out to be a significant increase in the interest rate.

There are also deposits that can be replenished during their validity period. In this case, the amount of interest increases in proportion to the "added" amount.

For this reason, before you “carve out” some amount from your budget for a deposit, make sure that you will not need it in the near future.

And finally, one more important point. The maximum rate in ruble terms must exceed the value, which is called the "refinancing rate", and is set by the Central Bank. You can always find out the size of the refinancing rate by visiting the website of the Central Bank.

Source: https://bbf.ru/magazine/14/3919/

What is a contribution?

Bank deposit (deposit) - funds in rubles or foreign currency placed by individuals and legal entities in a bank or a non-bank financial institution for the purpose of storing and generating income for a period, either on demand, or until the occurrence (non-occurrence) of a certain in the concluded agreement circumstances (events).

The choice of the option that is right for you depends on the desired storage period, the possibility of extending the deposit agreement and the possibility of receiving monthly interest. Some deposits also allow you to add funds to the deposit and withdraw part of the amount without losing interest.

The deposit amount consists of the initial deposit amount (paid at the time of opening the deposit) and the amount of additional contributions (if the deposit is replenished).

Banks usually fix a certain minimum amount for each type of deposit, in addition, within the same type of deposit, a different rate is often set depending on the amount of funds deposited.

As follows from the very term "term deposit", such deposits are placed for a certain period, which is stipulated in the bank deposit agreement.

Deposits can be opened in any currencies, transactions with which are carried out in banks of the Russian Federation. In our country, you can make a deposit in Russian rubles, US dollars, euros and rubles.

Prolongation (reinvestment) of a deposit is an automatic extension of the deposit agreement after its expiration without the client visiting the bank.

Not all bank deposits are reinvestable: the possibility / impossibility of automatic prolongation of the deposit agreement is determined by the bank. When making a deposit, you need to clarify with a bank representative about the availability of such an opportunity.

In cases where the term deposit is returned to the depositor at his request before the expiration of the term or before the occurrence of other circumstances specified in the bank deposit agreement, interest on the deposit is paid in the amount corresponding to the amount of interest paid by the bank on demand deposits, unless the agreement provides for a different amount. percent.

Funds are accepted as deposits (deposits) by a bank and a non-bank financial institution that, on the basis of a banking license, have the right to attract funds from individuals and (or) legal entities in deposits (deposits).

Attracting funds to deposits (deposits) is formalized by a bank deposit (deposit) agreement or another agreement containing conditions similar to those of a bank deposit (deposit) agreement established by this Code.

Distinguish between bank deposit (deposit) agreements: - bank deposit (deposit) agreement on demand; – an agreement on a term bank deposit (deposit); — conditional bank deposit (deposit) agreement.

Under the bank deposit (deposit) agreement on demand is understood the agreement, according to which the depositor is obliged to return the deposit (deposit) and pay the accrued interest on it at the first request of the depositor.

Under the term bank deposit (deposit) agreement is understood the agreement, according to which the depositor is obliged to return the deposit (deposit) and pay the accrued interest on it after the expiration of the period specified in the agreement.

A conditional bank deposit (deposit) agreement means an agreement under which the depositor is obliged to return the deposit (deposit) and pay interest accrued on it upon the occurrence (non-occurrence) of a circumstance (event) specified in the concluded agreement.

In the event of a decrease in the refinancing rate established by the National Bank, the depositor has the right to unilaterally, if provided for by the bank deposit (deposit) agreement, reduce the amount of interest paid on the deposit (deposit) in the official currency, with prior notification of the depositor.

In the event that the depositor reduces the amount of interest on the deposit (deposit), their new amount is applied to the deposit (deposit) made before the depositor was notified of the decrease in the amount of interest in print media that are official publications, or in another way provided for by the bank deposit (deposit) agreement after at least one month from the date of notification.

Interest on a deposit (deposit) is accrued from the day it is received by the depositor until the day preceding the day it is returned to the depositor, unless otherwise provided by the bank deposit (deposit) agreement.

Interest on the deposit (deposit) is paid to the depositor on a monthly basis, unless otherwise provided by the bank deposit (deposit) agreement. When returning the deposit (deposit), interest is accrued and paid in full.

The essential terms of the bank deposit (deposit) agreement include:

the currency of the deposit (deposit) and the amount of the initial contribution to the deposit (deposit);
the amount of interest on the deposit (deposit);
type of bank deposit (deposit) agreement;
term of return of the deposit (deposit) - for the agreement of the fixed-term bank deposit (deposit);
circumstance (event), upon the occurrence (non-occurrence) of which the depositor undertakes to return the deposit (deposit), - for a conditional bank deposit (deposit) agreement;
surname, name, patronymic, passport data of an individual, name and location of the legal entity (location of its permanent executive body), in whose name the deposit (deposit) is made - for a bank deposit (deposit) agreement in the name of another person;
other conditions regarding which, at the request of one of the parties, an agreement must be reached.

A bank deposit (deposit) agreement concluded with a depositor - an individual (with the exception of a depositor - an individual entrepreneur), in addition to the conditions specified above or other legislation, must contain the following essential conditions:

the procedure for the depositor to deposit funds into the deposit (deposit);
the procedure for the return of funds to the depositor in case of non-fulfillment by the depositor of the obligation or early termination of this agreement;
the responsibility of the depositor for failure to fulfill the obligation.

Depositors are free to choose a bank or a non-bank credit and financial organization to place their funds in deposits (deposits) and may have deposits (deposits) in one or several banks and (or) one or several non-bank credit and financial organizations.

If a term or conditional bank deposit (deposit) is returned to the depositor at his request before the expiration of the term for the return of the deposit (deposit) or before the occurrence (non-occurrence) of a circumstance (event) specified in the agreement, interest on the deposit (deposit) is paid in the amount and in the manner established by the agreement bank deposit (deposit).

Source: http://rbcard.com/forum/showthread.php/27-what-is-deposit-%28contribution%29

Is a deposit an ideal investment?

A deposit is an amount of money deposited into the account of a financial company for the purpose of making a profit.

Attention!

Most often, a deposit is understood as a deposit in a bank, when a certain amount of money is transferred to the bank for a certain period, and the bank undertakes to return this amount with interest.

Sometimes the concept of "deposit" is used in the case of depositing funds into an account, for example, a deposit in the forex market or the stock market (the amount of money that the trader manages).

In colloquial speech, a deposit can be used even in the HoReCa segment, for example, to reserve a table, they ask for a deposit (although this means a deposit that the client can then use). But still, a deposit is primarily a bank deposit.

A deposit is considered the safest way to store and increase temporarily free funds. Historically, in the financial sector, banks have the greatest customer confidence and there are a number of reasons for this:

most banks from year to year, and sometimes decades, demonstrate stability, despite economic crises;
banks are very tightly regulated by the state in all aspects, unlike other financial companies (investment banks and funds, brokers, dealers, pension funds, etc.);
attracting deposits from the population, banks have a very strict list of assets where they can invest clients' money, which allows them to protect clients' money from risky assets;
all banking institutions are participants in deposit guarantee funds (in the event of a bank failure, this fund returns the deposit to the client at least partially - this is perhaps one of the main trump cards of a deposit in a bank in terms of minimizing risks).

A deposit is a liability for the bank, the client's deposit is recorded as a debt that he must repay under strictly agreed conditions, such conditions are prescribed in the deposit agreement.

To return the deposit to the client, the bank invests the client's money in profitable assets, most often these are loans to other clients.

For example, a bank attracts deposits for a period of 1 year at 10%, and then lends this money to the population and companies, for example, at 12%. Thus, after 1 year, the deposit is returned to the client with an income of 10%, and another 2% remains with the bank, which forms its profit.

Deposits are urgent and demand deposits. Their main difference is that term deposits are deposits for a strictly specified period, from a couple of days to several years, without the client's right to withdraw money before the end of this period without losing income; demand deposits are deposits that the client can withdraw at any time without losing income.

An example of a term deposit. The bank attracts a deposit at 10% for 1 year. If the client wants to withdraw his deposit on the 1st or 11th month, he will lose income (in whole or in part, depending on the conditions in a particular bank).

Demand deposit example. The bank attracts a deposit at 3% while maintaining the client's ability to withdraw the deposit from the bank at any time.

This is very convenient for the client, because he can withdraw part of the funds in whole or in part, if necessary, but the interest rates on such deposits are much lower.

By obtaining flexibility of conditions, the client is forced to lose income, and vice versa - having received a higher income (in the case of a term deposit), the client loses the opportunity to withdraw funds without loss of income.

Depending on the characteristics of the deposit, deposits can be divided into several types:

urgent or on demand, which we discussed above;
foreign currency deposit (this is money in foreign currency deposited with the bank in order to generate income);
short-term deposit (as a rule, a deposit for a period of 1-2 days to a couple of weeks);
specialized deposit (for certain categories of citizens: schoolchildren, disabled people, veterans, etc.);
deposit with monthly interest and at the end of the term.

A deposit is the security of funds, and the risk is always inversely proportional to the level of income. Higher risk - higher return, lower risk - lower return.

This is how the market economy works. You must absolutely clearly understand for yourself that a deposit in a bank is more a means of saving funds than increasing them. In most of the best banks, interest on deposits is only slightly above the rate of inflation (depreciation of money).

Is a deposit an ideal investment? Alas... Let's take a real example (we changed the name of the bank), a term deposit for 1 year in bank XYZ in August 2015, for which the client is offered 11.05% of the income.

At the same time, inflation in the Russian Federation for 2014 amounted to 11.4%. The client has 100,000 rubles and he plans to deposit this amount at 11.05%, and in a year to buy a new laptop for 100,000, and he will have 11,050 rubles in reserve.

But a year later, having taken a deposit with income, namely 111,050 rubles, the client discovers that the laptop is already 11.4% more expensive (the ruble has depreciated and now the store asks for a laptop not 100,000 rubles, but 111,400).

Thus, the client is not only left with income, but actually received a loss in the difference between the deposit rate and inflation 11.05% - 11.4% = -0.35%.

Compared to someone who kept money “at home under his pillow”, a person with a deposit kept his funds with minimal losses. The rest of the potential investors who kept money at home lost the value of their capital by 11.4%.

Perhaps this example is not very successful. In 2014, the Russian Federation was going through hard times in the economy.

But even during the period of economic growth, when the deposit rate is higher than the inflation rate, the average income will not exceed 5%, which is very difficult to call a good income.

For example, in the UK at the moment the most profitable deposit in the respectable bank Lloyds TSB will bring you only 2.5%.

A deposit is a means of storing temporarily free funds, a means of saving capital.

If your goal is to make money, we advise you to learn about all the alternatives to a bank deposit account: investment funds, absolutely any own business, and if the topic of finance is close, then trading in the stock market or the forex market can be an excellent option, there are a lot of options.

Source: http://marketpost.net/forex/2015/08/10/chto-takoe-depozit-depozit-eto-.html

Note to contributor

“What is a deposit? What is a bank deposit? What is a bank deposit? What is a contribution? -the answer to these questions is not familiar to everyone, and whether these concepts differ from each other.

Attention!

Let's start with the fact that the word deposit is derived from the Latin "depositum", which means "a thing deposited."

In accordance with economic and explanatory dictionaries of market economy terms, as well as in accordance with the small encyclopedic dictionary, deposits have a broader interpretation, one of the types of which is "deposit".

Definition

Deposits are cash or securities deposited with financial and credit, customs, judicial or administrative institutions with the right to return. An extended interpretation of this concept sounds something like this:

deposit, this is a contribution to the customs authority to ensure payment of customs duties and fees;
a deposit is a contribution to judicial and administrative institutions to secure a claim, appearance in court, a deposit for participation in an auction;
a deposit is a contribution of funds or securities of enterprises, organizations and the population to commercial banks on certain conditions in order to generate income or obtain guarantees.

What is a contribution

From the last paragraph of the above definition, it becomes clear that deposits of individuals placed in banks (bank deposits) can also be called deposits, and then the phrase “deposit deposit”, often used by individuals, becomes clear.

Deposits are amounts of money deposited in a commercial bank for safekeeping under certain conditions (bank deposit), or funds transferred to a less liquid form (for example, in shares or bonds of enterprises or banks, investments in one's own business ...) in order to extract profit or guarantee.

That is, even the word "contribution" has a somewhat extended (than just a contribution of money) interpretation.

Deposits, or rather even deposits, include savings certificates of banks, which are issued to individuals (registered or bearer).

In paragraph 1 of Article 844 of Chapter 44 of the Civil Code of the Russian Federation, the meaning of a certificate is defined as follows: in the certificate of interest in the bank that issued the certificate, or in any branch of this bank.

In the legislation of the Russian Federation

I want to draw the attention of readers to the fact that in all banking legislation and in the Civil Code of the Russian Federation the concept of deposits, and not deposits, is fixed.

So, it is the meaning of the term “deposit” and everything related to them that is spelled out in Article 36 “Bank deposits” of the Federal Law “On Banks and Banking Activities” dated 02.12.1990 N 395-1, where: Deposit is cash in the currency of the Russian Federation or foreign currency placed by individuals for the purpose of storage and income generation. Income on the deposit is paid in cash in the form of interest.

The deposit is returned to the depositor at his first request in the manner prescribed for this type of deposit by federal law and the relevant agreement.

Deposits are accepted only by banks that have such a right in accordance with a license issued by the Bank of Russia, participate in the system of compulsory insurance of deposits of individuals in banks and are registered with an organization that performs the functions of compulsory insurance of deposits.

Banks ensure the safety of deposits and timely fulfillment of their obligations to depositors. Attraction of funds in deposits is formalized by the agreement in writing in two copies, one of which is issued to the depositor.

Banking legislation in this matter proceeds from the primacy of the Civil Code of the Russian Federation. Thus, bank deposits are prescribed in Chapter 44 of Part 2 of the Civil Code of the Russian Federation (CC RF) dated January 26, 1996 N 14-FZ, where everything about deposits is legally fixed: a bank deposit agreement, the right to raise funds in deposits, the form of a bank deposit agreement, types of deposits, etc.

In addition, in accordance with Article 5 of the Federal Law of the Russian Federation “On Banks and Banking Activity” No. 395-1 dated December 2, 1990, attracting funds from individuals and legal entities in deposits (on demand and for a certain period) refers to banking operations, and in accordance with article 13 of the same law, such banking operations are subject to licensing.

Therefore, if you are offered to place your funds at interest by various “non-banking” enterprises, then before parting with the money, think carefully about the consequences - returning such funds will be problematic and difficult, and often simply impossible, since such “cooperation” goes beyond legal norms for placing deposits.

Source: https://bankirsha.com/what-is-deposit.html

Bank deposit (deposit)

Investing temporarily free funds is the key to a stable future. That is why bank deposits always attract both entrepreneurs and private (individual, banking) persons.

Economists who develop programs for optimal costs, including the family budget, recommend setting aside part of the funds for a bank deposit. At the same time, the amount of the contribution to bank deposits must be at least ten percent of income monthly.

At first glance, this is too much to refuse to use money and place it on a deposit. But, analyzing your spending, you can see that just so much money is spent "wasted", on absolutely unnecessary things.

By setting aside these amounts for deposits, you can save up a sufficient amount at the end of the year, for example, for vacations or for the purchase of household appliances necessary for the household. Also, bank deposits allow you to save money for your children's education.

Bank deposits are offered on various terms. Bank deposits provide fairly high interest rates that save money from inflation. In addition, a variety of programs will make deposits convenient for every investor.

Bank deposits are a reliable path to wealth and stability. A bank deposit is what millionaires started with.

If you have temporarily free funds, put them in a deposit account. To do this, you only need a passport and a certificate of assignment of an identification number. Banks offer the following types of deposits:

Term deposit - money is deposited for a certain period, and interest is paid at the end of the term
Term deposit with monthly interest payment
Term deposit with quarterly interest payment
Cumulative deposit. The deposit must be replenished by at least 20% of the initial amount every three months. Interest is paid at the end of the term
Demand deposit - money is placed on deposit accounts on the terms of issuance at the first request of the client

Source: http://www.integral.com.ua/private/deposit

The difference between a deposit and a deposit

Deposit and deposit at first glance are synonymous, but in fact these banking services are slightly different. To answer the question of how a deposit differs from a deposit, in short, we can say that the first concept is broader.

A deposit is money that a client transferred to a bank for the purpose of storing and making a profit. The deposit can be urgent and on demand.

A term deposit has a certain period of validity, and if this condition is observed, the client can receive the maximum benefit.

You can withdraw money from a demand deposit at any time, but you won’t get a large income from it - this is the best option in order to safely save a large amount of money for some time (for example, between property purchase and sale transactions).

A deposit is an exclusively banking operation, therefore it is impossible to apply to organizations that do not have a license from the Bank of Russia.

There is a difference between the two concepts: deposit and contribution are types of storage. But a deposit is a kind of storage of valuables, but not necessarily money. The deposit can be securities, shares, precious metals, etc.

Source: http://www.plus-bank.ru/about/pressroom/abc_client/depozity-dlya-biznesa/otlichie-depozita-ot-vklada/

Bi-currency deposit - is it profitable?

Large savings are best kept in a bank - this is a well-known fact. And now, let's say, an enterprise or an entrepreneur has temporarily free money, which may soon be needed.

In such a situation, they can be put on a bi-currency deposit. In fact, this is a symbiosis of an ordinary fixed-term bank deposit and a currency option, which can help the company earn on free finances.

A feature of a dual-currency deposit: When the exchange rate drops below the level you choose, the deposit is converted into an alternative currency at the rate you set.

To make the essence of dual-currency deposits clearer, consider an example. Let's say you enter into an agreement with a bank for a deposit of 10 million Russian rubles for a period of 1 month.

In this case, the interest rate will be 19% per annum. The second currency you choose is the US dollar, the exchange rate of which on the day of the deposit is 60 rubles.

For example, you set the conversion rate at 60.5 rubles for 1 dollar. As a result, it turns out that if at the time of the expiration of the deposit the dollar exchange rate is below 60.5 RUR per $1, then you will receive your deposit with interest in US dollars at the rate of 60.5.

If the ruble has weakened, and the dollar is worth more than 60.5 RUR, the bank returns the deposit and accrued interest in rubles.

In this case, it turns out that if the dollar exchange rate is lower than the conversion rate you set, then you will lose part of the income, since your deposit will be converted into dollars at an unfavorable (overvalued) rate.

Thus, a dual-currency deposit will help the company make good money on working, temporarily free funds.

Or, for example, to receive income from money that still has to be changed into another currency.

Thanks to such a banking product, you can get an increased interest rate compared to a conventional deposit placement, but you should take into account the risk of losing some amount if a sharp change in the exchange rate occurs during the term of the contract.

The bank insures itself against sharp fluctuations in currency pairs, offering in return interest rates that are much higher than usual values, therefore, skillfully using such a financial instrument, you can make a significant profit.

“Investment without risk”, “medium profitable placement of free funds”, “obtaining a stable income” - this is how such a banking service as a deposit is usually characterized.

A bank deposit (deposit) is far from a new way to save and increase your capital. Moreover, both bankers and ordinary people who are far from the financial sector are equally interested in it. Let's take a look at what a bank deposit is and why it works.

Even before our era, the ancient Romans guessed to take loans from some people and lend to others. Borrowers had to return the loan with interest, part of which was due to the so-called depositor, and part to the one who organized this whole scheme. Since then, everything has remained virtually unchanged. Perhaps the volumes have become more significant.

In modern conditions, the concept of "Bank deposit" can be explained as follows: is money that you lend to the bank for temporary use. The bank guarantees the return of funds and pays you income in the form of interest on the deposit amount.

Why do banks need deposits?

Banks or other financial organizations use the money you bring in in their current activities and receive the corresponding income. Part of this profit will be paid out on deposits. It's simple: the bank shares with you the profit that it will receive by issuing loans to those in need with your own money.
Financial institutions are interested in our free funds no less than we are in obtaining a stable income. That is why banks offer deposits on a variety of conditions, so that depositors will definitely find a suitable option for themselves or get completely confused.

Rollover and capitalization

Words such as "capitalization", prolongation, appearing in a bank deposit agreement, can hypnotize anyone. Upon closer inspection, everything turns out to be much simpler.

Capitalization is the addition of accrued interest to the amount of your contribution. The following interest will already be credited by the bank to the total amount: deposit + interest. And so with a certain frequency until the end of the term of the deposit agreement.

On the day of the return of the deposit, the time comes for the magical effect of the concept of "prolongation". It is from her, the prolongation, that it depends whether the deposit will be extended by the bank automatically and under what conditions. That is, the prolongation of the deposit is its extension.

You don't have to be a doctor of mathematics to understand that deposits with monthly capitalization are more profitable for the depositor than those with interest payments at the end of the term. And the longer the term, the more significant the difference will be at the same annual rate.

A deposit with a prolongation on the terms of the same deposit will also bring more income, because. your money will work for you without interruption. After all, you can simply forget that the term of the contract without prolongation has ended, and provide your money to the bank for practically free use.

In any case, investing money in a bank deposit is currently considered the safest way to save and even increase your own funds. Yes, they will not give you a high income, but you won’t have to take risks either. The main thing is to decide on your financial goals and choose a bank deposit (or even two) that meets these goals.

What is the difference between a contribution and a deposit

Today these terms are used as synonyms. But there are differences between them, albeit small ones. In fact, any contribution is a cash deposit.

The difference lies in what the client transfers to the bank for safekeeping. When it comes to money, it is a contribution.

On deposit you can keep:

Securities, bonds
precious metals
Other values

What happens to deposits during bank reorganization

Unfortunately, due to the actions of unscrupulous top managers, some banks find themselves in a situation where they do not have enough funds to meet their obligations.

In such a case, there are usually two scenarios:

The bank loses its license
The bank is being sanitized

For depositors, the second option is preferable - reorganization or, in other words, saving the bank at the expense of budget funds or attracting investor money. In this case, the client will not lose a penny of his investment.

In the event that a bank's license is revoked, the depositor can only count on a refund of the amount guaranteed by the Deposit Insurance Agency (DIA). Today it is 1,400,000 rubles for individuals.