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A bank deposit is an easy way to save and increase your money. You transfer a certain amount to the bank on the terms of the agreement, and the bank pays you interest for the time the deposit is kept with it. Any citizen can open a deposit in the bank if he is 14 years old.
A bank deposit and a bank account are not the same thing. An account is needed to make non-cash transactions: remotely pay for purchases, transfer money, pay utility bills or receive social benefits and other credits. In short, it allows you to quickly resolve your current financial issues. You pay for the account maintenance by the bank.
Strictly speaking, deposit and deposit are also different concepts. A deposit is any value that you transfer for safekeeping: for example, securities. A contribution is precisely a monetary investment. But since any deposit can be called a deposit, banks often equate these concepts for clients.
Before opening a deposit
Before opening a deposit, decide on the goals of the deposit and select comfortable conditions. Answer yourself a few questions.
Who am I opening a deposit for?
Most often, you can open a deposit only in your own name. But some banks have a rather rare product - a deposit for another person. That is, you bring money to the bank, and the contract will be concluded with you. But you lose the rights to this investment as soon as the person in whose favor you opened the deposit makes a claim against the bank in relation to this deposit. From this moment on, it will be he who will manage the money (replenish, withdraw, receive interest). Such contributions are often created by parents for their children, indicating the cases when they will be able to start using the accumulated money: coming of age, wedding, the beginning of school.
When do I want to get my money back?
If you know for sure that you will need money after a certain time, you can make a term deposit - put money for a fixed period. And you can place money for an indefinite period - to issue a demand deposit. The conditions for the return of a deposit are always prescribed in the contract, so read it carefully before signing.
Will I do something with my contribution?
Decide on the goals of your contribution. The terms of the bank agreement determine what you can do with the money: withdraw partially without losing interest, replenish, receive interest on a bank card.
If you just want to set aside a certain amount by a certain date, you can act on the "put and forget" principle. In this case, it is better to choose a deposit with capitalization, when the interest that the bank charges under the terms of the agreement goes to increase the amount of the deposit.
You can save gradually, putting aside the free amount every month - then it is better to choose a replenished deposit.
Demand deposit. There are no special conditions for return. The money is kept until you close the deposit. Low interest rate.
Term deposit. Funds are placed for a specific period. Early withdrawal, as a rule, leads to a loss of interest, sometimes the deposit cannot be replenished. The interest rate is higher and depends on the term and amount of the deposit.
How to store it?
Deposits are opened not only in rubles, but also in foreign currency. You can also keep money in anonymized accounts of precious metals.
Currency. The deposit can be opened in any currency offered by the bank. Interest on such a deposit will be calculated in the same currency.
Many banks offer to open deposits in euros and US dollars, some allow you to open deposits in Chinese yuan, Japanese yen or Swiss francs. Not everyone has such an offer.
Multicurrency. You can open a deposit in several currencies at once. Any currency specified in the agreement is made for such a contribution. You can change the entire currency or part of the account itself (but a commission will be charged for the conversion). Deposit interest is calculated separately for each currency.
Depersonalized metal account. You can open a contribution in grams of precious metals (gold, silver, platinum). Under the agreement, interest may be charged on such an account, but the bank may charge a fee for maintaining and servicing it. Income on such deposits is not guaranteed, because it depends on changes in market prices for the precious metal. At the same time, the funds in the account are not insured in the deposit insurance system. Read more about how to make money with precious metals in the article "Myths and truths about precious metals".
How to open a deposit
If you have already decided which deposit and in which bank you want to open, you just have to conclude a bank deposit agreement. This is a document that defines:
The rules of the bank deposit agreement are determined by Civil Code
The contract is concluded in writing. There are three options for how to do this:
What is a savings book
This is a document certifying your right to dispose of the deposit. Upon presentation, a bank employee must make a note in it about the balance of money in your account at the current moment.
Is it possible to open a deposit without visiting the bank
Yes, if you are a client of the bank, then you can open a deposit through the Internet bank or mobile application. Usually, the interest on such a deposit is slightly higher than that of deposits that you open through the cashier.
What is a Savings Certificate
This is a security that certifies the amount of the deposit and your rights to receive the amount of the term deposit and interest after the expiration of the specified period. This is a document stating that you have deposited money for a term bank deposit. A savings certificate can be registered or bearer. Unlike a bearer savings certificate, the personalized certificate is insured in the compulsory deposit insurance system.
Deposit insurance
Only banks participating in the state deposit insurance system, which is managed by the state corporation "Deposit Insurance Agency" (DIA), can offer customers to open a deposit. Deposits in such banks are insured. However, in the event of an insured event, the DIA through the agent bank will return you no more than $ 200000.
Increased insurance - up to $ 150000 - is required only under certain circumstances. For example, if you received a large amount of inheritance or from the sale of housing, you received social subsidies, insurance benefits, payments by court order. But you can only count on increased compensation if the money was credited to your account no earlier than three months before the bank's license was revoked or a moratorium on payments on deposits was introduced.
In addition, the money on escrow accounts opened for the purchase and sale of real estate and settlements under agreements for participation in shared construction was insured for $ 150000.
The rest of the claims against the bank are satisfied outside the deposit insurance system. Read more about the work of the DIA in the article "How the Deposit Insurance System Works".
Banks that do not participate in the compulsory insurance system are prohibited from attracting deposits from citizens.
Before opening a deposit, check if the bank participates in the deposit insurance system. Call the hotline (toll-free) or look at the website.
What are the insured events
I am a contributor. What should I know?
How is the interest on the deposit calculated?
The interest rate is usually indicated in your deposit agreement (if it is not indicated, then the refinancing rate is applied). It can be either fixed or floating. The factors that affect the size of the floating interest rate are set by banks independently. That is, you can get a higher percentage if the financial market is doing well. But the amount of income, depending on the factors established by the bank, cannot be guaranteed.
How do I calculate the percentage?
Interest is calculated using the formulas of simple or compound (capitalization) interest. If the method of calculating interest is not specified in the agreement, then the calculation is carried out according to the formula of simple interest using the fixed interest rate specified in the agreement.
Simple interest
Interest is charged on the deposit amount without taking into account previously accrued interest.
How to calculate the amount of simple interest on a deposit.
Compound interest
Interest that is calculated on the amount of the deposit, taking into account the previously accrued interest. It is also called capitalized (accrued) interest.
How to calculate the amount of compound interest on a deposit.
How will the bank return my deposit?
The bank is not obliged to inform you that your bank agreement has expired. If you do not withdraw your money from a term deposit when the period is over, then it becomes a demand deposit. Or the agreement is considered extended on the conditions in force at that moment in the bank, unless otherwise provided by it.
You can open a deposit, which can be closed without losing interest upon the occurrence of a certain event. For example, a deposit opened for a minor child may be terminated both upon the onset of his majority, and before the onset of majority by his legal representative (parent / guardian), provided that he has the appropriate documents.
The bank must return the money to you on demand, regardless of which deposit you opened. But if you pick up the money ahead of time, then you, as a rule, lose the accrued interest, if your agreement does not provide for the possibility of keeping the rate in this case.
Can a contribution be inherited?
Yes. It can be inherited by the will of the depositor. To do this, you need to include a contribution to the composition of property inherited according to a notarized will, or draw up a separate testamentary disposition - a bank version of the will of the savings that you want to inherit. You can draw up a testamentary disposition free of charge at the bank branch where you signed the deposit agreement.
Who can dispose of the deposit?
The owner of the deposit. You can also transfer the right to dispose of your deposit by power of attorney to third parties indicated in it. Such a power of attorney is drawn up with a notary or directly at the bank.
A bank deposit and a bank account are not the same thing. An account is needed to make non-cash transactions: remotely pay for purchases, transfer money, pay utility bills or receive social benefits and other credits. In short, it allows you to quickly resolve your current financial issues. You pay for the account maintenance by the bank.
Strictly speaking, deposit and deposit are also different concepts. A deposit is any value that you transfer for safekeeping: for example, securities. A contribution is precisely a monetary investment. But since any deposit can be called a deposit, banks often equate these concepts for clients.
Before opening a deposit
Before opening a deposit, decide on the goals of the deposit and select comfortable conditions. Answer yourself a few questions.
Who am I opening a deposit for?
Most often, you can open a deposit only in your own name. But some banks have a rather rare product - a deposit for another person. That is, you bring money to the bank, and the contract will be concluded with you. But you lose the rights to this investment as soon as the person in whose favor you opened the deposit makes a claim against the bank in relation to this deposit. From this moment on, it will be he who will manage the money (replenish, withdraw, receive interest). Such contributions are often created by parents for their children, indicating the cases when they will be able to start using the accumulated money: coming of age, wedding, the beginning of school.
When do I want to get my money back?
If you know for sure that you will need money after a certain time, you can make a term deposit - put money for a fixed period. And you can place money for an indefinite period - to issue a demand deposit. The conditions for the return of a deposit are always prescribed in the contract, so read it carefully before signing.
Will I do something with my contribution?
Decide on the goals of your contribution. The terms of the bank agreement determine what you can do with the money: withdraw partially without losing interest, replenish, receive interest on a bank card.
If you just want to set aside a certain amount by a certain date, you can act on the "put and forget" principle. In this case, it is better to choose a deposit with capitalization, when the interest that the bank charges under the terms of the agreement goes to increase the amount of the deposit.
You can save gradually, putting aside the free amount every month - then it is better to choose a replenished deposit.
Demand deposit. There are no special conditions for return. The money is kept until you close the deposit. Low interest rate.
Term deposit. Funds are placed for a specific period. Early withdrawal, as a rule, leads to a loss of interest, sometimes the deposit cannot be replenished. The interest rate is higher and depends on the term and amount of the deposit.
How to store it?
Deposits are opened not only in rubles, but also in foreign currency. You can also keep money in anonymized accounts of precious metals.
Currency. The deposit can be opened in any currency offered by the bank. Interest on such a deposit will be calculated in the same currency.
Many banks offer to open deposits in euros and US dollars, some allow you to open deposits in Chinese yuan, Japanese yen or Swiss francs. Not everyone has such an offer.
Multicurrency. You can open a deposit in several currencies at once. Any currency specified in the agreement is made for such a contribution. You can change the entire currency or part of the account itself (but a commission will be charged for the conversion). Deposit interest is calculated separately for each currency.
Depersonalized metal account. You can open a contribution in grams of precious metals (gold, silver, platinum). Under the agreement, interest may be charged on such an account, but the bank may charge a fee for maintaining and servicing it. Income on such deposits is not guaranteed, because it depends on changes in market prices for the precious metal. At the same time, the funds in the account are not insured in the deposit insurance system. Read more about how to make money with precious metals in the article "Myths and truths about precious metals".
How to open a deposit
If you have already decided which deposit and in which bank you want to open, you just have to conclude a bank deposit agreement. This is a document that defines:
- type (name) of the deposit;
- its initial amount;
- the procedure for calculating interest (simple or capitalization);
- the term for the return of the deposit, the procedure for returning, including early (some banks require you to warn about the closure of the deposit and ordering money several days in advance);
- other conditions, including the possibility of withdrawing funds from the deposit account or replenishing it.
The rules of the bank deposit agreement are determined by Civil Code
The contract is concluded in writing. There are three options for how to do this:
- Sign a bank deposit agreement with the bank;
- Sign a statement of agreement with the offer (these are the rules and conditions for placing deposits in the bank);
- Obtain a passbook, certificate or other document that meets the requirements of legislation and banking practice.
What is a savings book
This is a document certifying your right to dispose of the deposit. Upon presentation, a bank employee must make a note in it about the balance of money in your account at the current moment.
Is it possible to open a deposit without visiting the bank
Yes, if you are a client of the bank, then you can open a deposit through the Internet bank or mobile application. Usually, the interest on such a deposit is slightly higher than that of deposits that you open through the cashier.
What is a Savings Certificate
This is a security that certifies the amount of the deposit and your rights to receive the amount of the term deposit and interest after the expiration of the specified period. This is a document stating that you have deposited money for a term bank deposit. A savings certificate can be registered or bearer. Unlike a bearer savings certificate, the personalized certificate is insured in the compulsory deposit insurance system.
Deposit insurance
Only banks participating in the state deposit insurance system, which is managed by the state corporation "Deposit Insurance Agency" (DIA), can offer customers to open a deposit. Deposits in such banks are insured. However, in the event of an insured event, the DIA through the agent bank will return you no more than $ 200000.
Increased insurance - up to $ 150000 - is required only under certain circumstances. For example, if you received a large amount of inheritance or from the sale of housing, you received social subsidies, insurance benefits, payments by court order. But you can only count on increased compensation if the money was credited to your account no earlier than three months before the bank's license was revoked or a moratorium on payments on deposits was introduced.
In addition, the money on escrow accounts opened for the purchase and sale of real estate and settlements under agreements for participation in shared construction was insured for $ 150000.
The rest of the claims against the bank are satisfied outside the deposit insurance system. Read more about the work of the DIA in the article "How the Deposit Insurance System Works".
Banks that do not participate in the compulsory insurance system are prohibited from attracting deposits from citizens.
Before opening a deposit, check if the bank participates in the deposit insurance system. Call the hotline (toll-free) or look at the website.
What are the insured events
- The Bank imposed a moratorium on satisfying the claims of the bank's creditors.
- Revocation of the bank's license.
I am a contributor. What should I know?
How is the interest on the deposit calculated?
The interest rate is usually indicated in your deposit agreement (if it is not indicated, then the refinancing rate is applied). It can be either fixed or floating. The factors that affect the size of the floating interest rate are set by banks independently. That is, you can get a higher percentage if the financial market is doing well. But the amount of income, depending on the factors established by the bank, cannot be guaranteed.
How do I calculate the percentage?
Interest is calculated using the formulas of simple or compound (capitalization) interest. If the method of calculating interest is not specified in the agreement, then the calculation is carried out according to the formula of simple interest using the fixed interest rate specified in the agreement.
Simple interest
Interest is charged on the deposit amount without taking into account previously accrued interest.
How to calculate the amount of simple interest on a deposit.
Compound interest
Interest that is calculated on the amount of the deposit, taking into account the previously accrued interest. It is also called capitalized (accrued) interest.
How to calculate the amount of compound interest on a deposit.
How will the bank return my deposit?
The bank is not obliged to inform you that your bank agreement has expired. If you do not withdraw your money from a term deposit when the period is over, then it becomes a demand deposit. Or the agreement is considered extended on the conditions in force at that moment in the bank, unless otherwise provided by it.
You can open a deposit, which can be closed without losing interest upon the occurrence of a certain event. For example, a deposit opened for a minor child may be terminated both upon the onset of his majority, and before the onset of majority by his legal representative (parent / guardian), provided that he has the appropriate documents.
The bank must return the money to you on demand, regardless of which deposit you opened. But if you pick up the money ahead of time, then you, as a rule, lose the accrued interest, if your agreement does not provide for the possibility of keeping the rate in this case.
Can a contribution be inherited?
Yes. It can be inherited by the will of the depositor. To do this, you need to include a contribution to the composition of property inherited according to a notarized will, or draw up a separate testamentary disposition - a bank version of the will of the savings that you want to inherit. You can draw up a testamentary disposition free of charge at the bank branch where you signed the deposit agreement.
Who can dispose of the deposit?
The owner of the deposit. You can also transfer the right to dispose of your deposit by power of attorney to third parties indicated in it. Such a power of attorney is drawn up with a notary or directly at the bank.