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One of the key parameters is the term of the deposit. As already noted, the money put on deposit is provided to the bank only for a certain period, after which it is obliged to return it. The two main types of deposits that banks offer their customers are demand deposits and term deposits. Demand deposits - deposits of a special type. By accepting money under a demand deposit agreement, the bank is obligated to return it at any time as soon as you need it. such a contribution is very convenient, since the client is free to manage their own savings. However, this type of deposits has a big minus - they bring too little income. The level of interest on demand deposits rarely exceeds 1% per annum, being, as a rule, at the level of 0.1%. The low level of interest on such deposits is understandable. Banks, as a rule, cannot use cash on demand deposits in the long term, and therefore are forced to limit their investments in the range from several hours to several days. Imagine that Natalya Alexandrovna decided to put funds in the amount of 30 thousand rubles. to the bank for a demand deposit. The bank accepted this deposit, but cannot say with certainty when Natalya Alexandrovna will demand a refund. This can happen today, tomorrow, the day after tomorrow, in a month or a year. The bank can only guess when Natalya Alexandrovna will come back for her money.
Consequently, the bank must find very short terms for the placement of received money, which can not always be obtained from it. Sometimes Natalya Alexandrovna’s money will lie idle, but the bank will still have to pay interest to her. Thus, it should be remembered that demand deposits are very convenient from the point of view of investors receiving their funds at any time, however, such convenience is achieved due to very low interest rates. Consider another type of deposits - term deposits. These deposits are the most convenient for banks, since they involve raising funds by the bank for a certain period. Banks can be more or less confident that the money will not be reclaimed by the depositor during the entire term of the term deposit agreement.
Convenience for banks also brings benefits to depositors: interest on term deposits is much higher than on demand deposits, and, in particular, can sometimes exceed the inflation rate. True, banks impose various penalties for withdrawing money from a deposit ahead of schedule. so, usually, if you needed money earlier and you took it off before the expiration of the deposit agreement, the bank will charge you lower interest. Most often, the interest that you will receive upon early withdrawal of a deposit will be calculated at the rate applicable to demand deposits. Imagine that Natalya Alexandrovna put 30 thousand rubles. for a deposit of 6 months at 10% per annum. 3 months passed, and Natalya Alexandrovna needed her money. She came to the bank and closed her deposit. The girl-clerk announced that since the money did not lie all the time, Natalya Alexandrovna would pay a percentage of the deposit equal to 0.1% per annum, or 7.5 rubles. For 3 months Banks offer many varieties of term deposits. For example, there are deposits, under the terms of which you transfer a fixed amount of money to the bank and, in order not to lose interest, you can no longer make any operations with this amount until the deposit term expires. If the depositor is determined to save a certain amount for the future, such restrictions may prove to him an additional incentive to avoid the temptation to spend money ahead of time. There are also deposits with more flexible conditions that allow you to withdraw part of the money from the deposit ahead of schedule (as a rule, the bank in this case sets the amount of the minimum balance, which is the limit for reducing the deposit amount).
If you want to be able to add money to a deposit opened in a bank, you should use a replenished deposit. In addition to the fact that dealing with one deposit is more convenient and simpler, a replenished contribution may be more profitable. Since banks monitor the situation in the financial market, they often review the conditions for paying interest, and the interest rate on newly opened deposits can be significantly reduced. However, on previously opened deposits until the end of the period established by the deposit agreement, the rates remain the same.
TO BE CONTINUED…
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