What does deposit mean? What is a deposit and why is it needed?

terms

“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 are these concepts different from each other? Let's start with the fact that the word deposit is a derivative of the Latin “depositum”, which means “a thing given for safekeeping.” 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 “ contribution».

General definition of deposit

Deposits- these are funds or securities deposited with financial, credit, customs, judicial or administrative institutions, with the right of return. An expanded interpretation of this concept sounds something like this:

• deposit is a contribution to the customs authority to ensure payment of customs duties and fees;


• deposit is a contribution to judicial and administrative institutions to secure a claim, appearance in court, and a deposit for participation in an auction.


• deposit is a deposit funds or securities of enterprises, organizations and individuals to commercial banks under 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 can also be called deposits of individuals placed in banks (bank deposits), and then the phrase often used by individuals - “deposit deposit” - becomes clear.

Deposits- these are amounts of money deposited in a commercial bank for storage under certain conditions (bank deposit), or funds transferred into a less liquid form (for example, into shares or bonds of enterprises or banks, investments in one’s own business...) for the purpose of making a profit or obtaining a guarantee. That is, even the word “deposit” has a somewhat expanded (than just depositing money) interpretation.

Deposits, or rather even deposits, also include bank savings certificates, 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 the certificate is defined as follows:

A savings (deposit) certificate is a security that certifies the amount of a deposit made to a bank and the right of the depositor (certificate holder) to receive, upon expiration of a specified period, the deposit amount and the interest stipulated in the certificate in the bank that issued the certificate or in any branch of this bank.

Definition of a bank deposit in the legislation of the Russian Federation

I would also like to draw the attention of readers to the fact that the entire banking legislation and the Civil Code of the Russian Federation enshrines the concept of deposits, not deposits. So, it is the meaning of the term “deposit” and everything connected with them that is spelled out in Article 36 “Bank deposits” of the Federal Law “On Banks and Banking Activities” dated December 2, 1990 N 395-1, where:

Contribution- funds in the currency of the Russian Federation or foreign currency placed by individuals for the purpose of storing and generating income. Income on the deposit is paid in cash in the form of interest. The deposit is returned to the depositor upon his first request in the manner prescribed for a deposit of this type 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, that participate in the system of compulsory insurance of deposits of individuals in banks and are registered with an organization that carries out the functions of compulsory deposit insurance. Banks ensure the safety of deposits and timely fulfillment of their obligations to depositors. Attraction of funds into deposits is formalized by an agreement in writing in two copies, one of which is issued to the depositor.

Banking legislation in this matter is based on 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 (Civil Code of the Russian Federation) dated January 26, 1996 N 14-FZ, where everything about deposits is legislated: a bank deposit agreement, the right to attract funds into 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 Activities” No. 395-1 of December 2, 1990, attracting funds from individuals and legal entities into 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.

Hello! In this article we will talk about bank deposits.

Today you will learn:

1. How to open a bank deposit;
2. What types of bank deposits are there?
3. What is the difference between a contribution and a deposit?

Contribution– a convenient and accessible financial instrument for citizens. It is very popular, it can be opened in any banking organization.

If you are thinking about what to do with your savings, this method is definitely worth paying attention to. Let's talk about what a contribution is and what features are inherent in it.

The concept of a bank deposit

Bank deposit - this is a specific amount of money transferred to a bank for safekeeping in order to make a profit.

The profit consists of the interest rate that the bank charges for the depositor keeping his savings in their account. Interest on the deposit is accrued for the agreed period.

Types of bank deposits

Deposit on demand

A distinctive characteristic of a demand deposit is the ability of the depositor to withdraw all or part of his money or replenish his deposit at any time. As a rule, the interest rate on such deposits is minimal and fluctuates around 0.1-1%.

Why then is such a contribution needed? This type of deposit is used to avoid storing large amounts of cash at home. For example, you sold your car and are going to buy a new one, but have not yet decided on the choice and in order to protect yourself and your savings, the best solution would be to open this particular type of deposit.

Urgent

This type of deposit is suitable for the category of citizens who want to receive additional income for storing their money in the bank. Each bank may offer you different terms for which you can open your deposit. The interest rate depends on the size of the terms.

Terms can be from one month to three years and the interest rate from 4 to 10%, respectively. Unlike a demand deposit, a time deposit does not allow free use of funds in the account. Neither replenishment nor withdrawal of money is possible until the expiration of the agreement concluded with the banking organization.

Targeted deposits

This is a type of deposit that in most cases is opened for a long period and has a highly profitable interest rate. The deposit period ends upon achieving a certain goal, for example, a child entering university, or reaching adulthood, or purchasing real estate.

The advantage of target deposits over time deposits is that the investor has the opportunity to replenish his deposit.

Savings deposits

Citizens who open a deposit of this type have the opportunity, and in some cases even the obligation, to replenish it by a certain amount specified in the contract on a monthly basis.

Interest on savings deposits is an order of magnitude lower than interest on time deposits, but such deposits are ideal for those who want to save a decent amount, starting with a small down payment.

Current deposits

Deposits of this type allow the investor to receive income from their investments, while managing them quite affordably. Current deposits are divided into two types: replenishable only and expense-replenishable.

In the first case, you are only allowed to replenish your deposit in order to receive more income. In the second case, it is allowed not only to replenish the deposit, but also to partially spend funds from the account, provided that the deposit balance does not fall below the established minimum, otherwise the interest rate will be reduced.

Multicurrency

By opening such a deposit, you can store your money in several types of currencies at once. Using this tool, you can make a profit not only from the interest accrued on the balance, but also from transferring money from one currency to another.

This deposit has a distinctive feature: the risk of losing funds is minimized.

Typically, banks offer to open such a deposit in the most common currencies: dollars, euros and rubles. Moreover, a deposit in rubles brings the maximum income, since the percentage of the highest level is set for it.

Deposits for pensioners

For this category of citizens, many banking organizations have developed a special product with a small minimum deposit amount. There are also various loyalty programs, bonus systems, and so on for older people.

For example, at Sovcombank the minimum deposit amount is only 500 rubles, you can withdraw accumulated funds once a month, and you can also top up your account at any time.

You can find more detailed information about deposits.

How to open a bank deposit

Sooner or later in every person’s life, the need arises to open a bank deposit.

Let's take a closer look at what needs to be done for this:

1. We choose the most suitable bank. How to do it? To begin with, at least look at the ratings of banks on various resources on the Internet, check out the official website, see what information is in the public domain.

Also check whether deposits in this bank are insured by the state; if not, then you should not become its client.

Read customer reviews of this banking organization. These could be your acquaintances, friends, family members. But the most reliable ones will be those that you find online, but not on the bank’s official website.

2. We contact the bank. In order to open a deposit in your name, you need to contact a bank branch in person. A bank employee will accept your application and offer several options for opening a deposit so that you can choose the conditions that suit you best.

Ask for specialist advice on every issue that interests you. After all, the correct choice of deposit determines how you can manage your savings and what interest rate you will receive from the bank.

To make a deposit at a bank, you will need only one document confirming your identity - a passport of a citizen of the Russian Federation. You will also need to fill out an application form in which you indicate the type of deposit you have chosen.

After all the necessary steps, within a few minutes, a bank employee will open a deposit account in your name and give you the original of the concluded agreement between you and the bank.

The agreement is drawn up in two copies: one is given to you, the second is kept in the bank branch. The deposit opening agreement contains all the detailed information and conditions for opening a deposit.

How interest is calculated

For each type of deposit, interest is calculated differently. But in most cases, accrual occurs at the end of the contract term. For some types of deposits, interest is accrued monthly or quarterly.

Some banks use a system of capitalization of interest on deposits, that is, interest accrued for the reporting month is added to the principal amount and in the next month interest on the deposit is accrued on them.

Recently, banks have begun to offer new types of interest on deposits. You deposit a certain amount into the account, but not less than the minimum (set by the bank) and the next day after opening the account, you receive the entire amount of accrued interest.

In this case, it will be impossible to use the funds on the deposit until the end of the contract. This method of calculating interest is suitable for those who find it more profitable to use the income received now and not wait for a long time.

The difference between a bank deposit and a deposit

A bank deposit is a narrower concept and defines a specific type of any deposit, and a deposit, in turn, covers all these concepts as one and is a generalizing term.

In this article we have already given the concept of a bank deposit, now let’s move on to the deposit. In addition to cash deposits, a deposit can be opened in the form of securities, precious metals (platinum, silver, gold) and other assets, with or without the purpose of receiving additional income.

Another important difference between a deposit and a deposit is that a deposit can only be opened in a banking organization that has the appropriate license and permission for such actions, while a deposit can be opened in any financial organization.

But keep in mind that by opening a deposit not in a bank, but in an unlicensed organization, you risk quite a lot, not only will you not receive any benefit, but you will also lose your savings.

The more the depositor has the ability to manage his funds on the deposit, the lower the interest rate set by the bank will be. Therefore, if your main goal of opening a deposit is to maximize profit, then the classic deposit option is suitable for you, without the ability to manage your savings.

Depositors' rights

Even if you enter into an agreement to open a deposit in a fairly well-known bank that has a positive reputation, you should not blindly trust this organization without reading all the clauses of the agreement in detail. Each banking organization has its own deposit agreement template.

But all banks are required to indicate the following mandatory points:

• The period for which the deposit was opened;
• The individual interest rate is usually indicated in % per annum;
• The system by which interest is calculated and paid;
• Conditions for early termination of the contract or its continuation;
• The ability to manage your money.

According to the legislation of the Russian Federation, citizens of the Russian Federation, citizens of other states, and stateless persons, in cases where the latter have provided a temporary residence permit or stay in the Russian Federation, have the right to open a deposit. Opening a deposit is only possible in person and individually. It is impossible to open a deposit to a group of several people.

A citizen who has entered into an agreement to open a deposit has the following rights:

• Top up your bank deposit account (if provided for in the agreement);
• Receive a profit at the specified interest rate in accordance with the agreement;
• Upon expiration of the period, return your funds in full;
• Terminate the bank deposit agreement early;
• Manage your funds on the deposit, if such an opportunity is specified in the agreement.

A banking organization cannot reduce the interest rate on its own. The rights of depositors in the Russian Federation are regulated by the law “On Banks and Banking Activities”.

Also, the state, taking care of depositors’ funds, necessarily insures deposits through the Insurance Agency and guarantees, in the case of a bank, a 100% return of funds to the depositor, but not more than 1.4 million rubles.

Bank deposit insurance

The amount for which each deposit is insured is currently 1,400,000 rubles. The savings of the population are thus protected throughout the Russian Federation. Such a system has been developed and operates in other states too.

The compulsory insurance system is part of a state program that is designed to protect the financial interests of citizens, while in order to insure a deposit, a person does not need to enter into separate contracts. The deposit is insured by law.

How are payments made?

As we have already said, payments cannot be more than 1,400,000 rubles, regardless of how much money a person keeps in his accounts in a particular bank, or in several of its branches. If the depositor’s accounts are opened in different banks, then he will receive compensation for each deposit.

But there are several types of funds that are not covered by insurance:

• Bank deposit opened to bearer;
• If the account is opened for the maintenance of a prof. activities by persons who are entrepreneurs without;
• If the funds are transferred to a banking organization for trust management;
• If the deposit is opened in a branch of a Russian bank located in another country;
• Funds from a deposit opened in precious metals.

It is quite possible that the insurance amount will only increase in the future. This will provide a higher level of protection for investors who do not have large funds, and therefore will increase the activity of accumulating funds.

If the investor has large funds, he has more than one million savings, the amount of insurance established by the state does not currently have much effect. They have to split their savings between different large banking organizations.

Positive and negative aspects of bank deposits

Let's consider both sides of using such an investment instrument as a bank deposit. It is clear that there are both pros and cons here; let’s look at them in more detail.

Pros:

• To open a deposit, you do not need to collect a lot of documentation;
• The opening process is simple and straightforward;
• Income can be calculated in advance;
• State guarantees;
• Tax benefits;
• Opportunity to open a deposit at a high interest rate.

To sum up, we can say that opening a bank deposit is a reliable way to invest savings. And now the promised fly in the ointment.

Main disadvantage– this is a high level of inflation, which can even be called difficult to predict. Although we are talking about only 4%, the actual percentage is much higher. Usually it exactly exceeds the level of return on the deposit. Very rarely equals profitability.

So what's the bottom line? It is very profitable to open a deposit if you need money for a specific purpose: purchasing an apartment, a car or another major transaction. Or the second option: to create a “safety cushion”, so to speak, for a rainy day.

Conclusion

A bank deposit has a right to exist. It will help preserve and protect citizens' savings.

Open deposits, look for current financial instruments, the main thing is to do it carefully and thoughtfully.

Deposit what is it

Greetings to all, dear readers. Over the weekend I was more surprised than ever.

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 intense interrogation about a bank deposit - what it is and what benefits she, my granny, can get from her savings, which she has saved all her life.

I had to tell everything in the smallest detail. And now, dear friends, I’ll tell you everything.

What is a deposit and why is it needed?

A deposit is money transferred for safekeeping to a bank; the terms and conditions are specified in the agreement. There are time and demand deposits. For the use of the depositor's money, the bank pays a monetary reward in the form of interest.

The concept of “deposit” refers to money that you transfer to the bank for safekeeping. They are subject to return within the period 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, enterprise, or cash it through a bank cash desk or ATM. The funds in your account belong to this category.

Time 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 deposited money in the bank under the terms of a time deposit, you can withdraw it no earlier than the period specified in the agreement.

What is the point of transferring your money to strangers for safekeeping? Let's skip all the disadvantages of storing 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 quickly distributes in the form of loans), the bank pays depositors monetary compensation in the form of interest.

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

The interest that the bank charges at the end of the deposit period 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 after a year you will have $550 in your account.

In the same way, interest is calculated on the money you have in your checking account. At a certain time, the bank system checks the amount of funds in your account and charges 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, annually, etc.

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

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

The difference at first glance is insignificant, but if the deposit amount 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 throughout their validity period. In this case, the amount of interest increases in proportion to the “added” amount.

For this reason, before you carve out any 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 equivalent must exceed a value called the “refinancing rate”, established by the Central Bank. You can always find out the size of the refinancing rate by visiting the Central Bank website.

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 non-bank financial institution for the purpose of storing and receiving income for a period, either on demand, or until the occurrence (non-occurrence) specified 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 (deposited 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 they often set a different rate depending on the amount of funds deposited.

As follows from the term “time deposit” itself, such deposits are placed for a certain period, which is specified in the bank deposit agreement.

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

Deposit extension (reinvestment) is an automatic extension of the deposit agreement after the expiration of its validity period without the client visiting the bank.

Not all bank deposits are reinvested: the possibility/impossibility of automatic extension of the deposit agreement is determined by the bank. When making a deposit, you must check with a bank representative about the availability of such an opportunity.

In cases where a time deposit is returned to the depositor upon 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 an 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 by banks and non-banking financial institutions that, on the basis of a banking license, have the right to attract funds from individuals and (or) legal entities into deposits.

Attraction of funds into deposits is formalized by a bank deposit agreement or another agreement containing conditions similar to the terms of the bank deposit agreement established by this Code.

There are bank deposit agreements: - bank deposit agreement on demand; — term bank deposit agreement; — conditional bank deposit agreement.

A demand bank deposit agreement is an agreement under which the depositor is obliged to return the deposit (deposit) and pay the interest accrued on it upon the depositor’s first demand.

A fixed-term bank deposit agreement is an agreement under which the depositor is obliged to return the deposit (deposit) and pay the interest accrued on it after the expiration of the period specified in the agreement.

A conditional bank deposit agreement is 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 in the bank deposit agreement, reduce the amount of interest paid on the deposit in an official monetary unit, with prior notification of this to the depositor.

If 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 reduction in the amount of interest in the print media, which are official publications, or in another way provided for by the bank 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 agreement.

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

The essential terms of the bank deposit agreement include:

• currency of the deposit (deposit) and the amount of the initial contribution to the deposit (deposit);
• amount of interest on the deposit;
• type of bank deposit agreement;
• deposit return period – for a fixed-term bank deposit agreement;
• circumstance (event), upon the occurrence (non-occurrence) of which the depositor undertakes to return the deposit (deposit), - for a conditional bank deposit agreement;
• last name, first name, patronymic, passport details of an individual, name and location of the legal entity (location of its permanent executive body) in whose name the deposit is made - for a bank 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 agreement concluded with a depositor - an individual (except for a depositor - an individual entrepreneur), in addition to the conditions defined above or other legislation, must contain the following essential conditions:

1. the procedure for the depositor to contribute funds to the deposit;
2. the procedure for returning funds to the depositor in the event of failure by the depositor to fulfill the obligation or early termination of this agreement;
3. liability of the depositor for failure to fulfill the obligation.

Depositors are free to choose a bank or non-banking financial institution to place their funds in deposits (deposits) and may have deposits in one or more banks and (or) one or more non-banking financial institutions.

If a fixed-term or conditional bank deposit (deposit) is returned to the depositor upon his request before the expiration of the term for 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 manner established by the agreement bank deposit (deposit).

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

Is a deposit an ideal investment?

A deposit is an amount of money deposited into a financial company account 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 term "deposit" is used in the case of depositing funds into an account, such as a deposit in the forex market or the stock market (a sum of money controlled by a trader).

In colloquial speech, a deposit can be used even in the HoReCa segment, for example, to book a table you are asked to make 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 hold the greatest customer trust and there are a number of reasons for this:

1. most banks demonstrate stability from year to year, and sometimes for decades, despite economic crises;
2. banks are very strictly regulated by the state in all aspects, unlike other financial companies (investment banks and funds, brokers, dealers, pension funds, etc.);
3. when attracting deposits from the public, banks have a very strict list of assets where they can invest clients’ money, which allows them to protect clients’ money from risky assets;
4. all banking institutions are participants in deposit guarantee funds (in the event of a bank bankruptcy, this fund returns the client’s deposit 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 specified conditions, such conditions are specified 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 can be urgent or on demand. Their main difference is that fixed-term deposits are 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 a client wants to withdraw his deposit in the 1st or 11th month, he will lose income (all or partly, depending on the conditions in a particular bank).

Example of a demand deposit. 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 the need arises, but the interest rates on such deposits are much lower.

While receiving flexibility of conditions, the client is forced to lose in income, and vice versa – having received a higher income (in the case of a fixed 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 in a bank for the purpose of generating income);
• short-term deposit (usually 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 accrual and at the end of the term.

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

This is how a market economy works. You must understand absolutely clearly that a deposit in a bank is more a means of preserving funds than increasing them. Most of the best banks pay interest on deposits 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 time deposit for a period of 1 year in XYZ bank in August 2015, for which the client is offered 11.05% income.

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

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

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

Compared to those who kept money “at home under their pillow,” the person with the deposit saved their funds with minimal losses. Other potential investors who kept money at home lost the value of their capital by 11.4%.

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

But even during a 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 earn money, we advise you to find out about all the alternatives to a deposit account in a bank: investment funds, absolutely any business of your own, and if the topic of finance is close, then trading on the stock market or the forex market could 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 the investor

“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 are these concepts different from each other?

Attention!

Let's start with the fact that the word deposit is a derivative of the Latin "depositum", which means "a thing given for safekeeping."

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 funds or securities deposited with financial, credit, customs, judicial or administrative institutions, with the right of return. An expanded interpretation of this concept sounds something like this:

1. deposit is a contribution to the customs authority to ensure payment of customs duties and fees;
2. deposit is a contribution to judicial and administrative institutions to secure a claim, appearance in court, a deposit for participation in an auction;
3. A deposit is a deposit of funds or securities of enterprises, organizations and individuals in commercial banks under 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 can also be called deposits of individuals placed in banks (bank deposits), and then the phrase often used by individuals - “deposit deposit” - becomes clear.

Deposits are amounts of money deposited in a commercial bank for safekeeping under certain conditions (bank deposit), or money transferred into a less liquid form (for example, into shares or bonds of enterprises or banks, investments in one’s own business...) for the purpose of extraction profit or obtaining a guarantee.

That is, even the word “deposit” has a somewhat expanded (than just depositing money) interpretation.

Deposits, or rather even deposits, also include bank savings certificates, 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 the certificate is defined as follows: A savings (deposit) certificate is a security certifying the amount of the deposit made to the bank and the right of the depositor (certificate holder) to receive, upon expiration of the established period, the amount of the deposit and the conditions in an interest certificate from the bank that issued the certificate or from any branch of that bank.

In the legislation of the Russian Federation

I would also like to draw the attention of readers to the fact that the entire banking legislation and the Civil Code of the Russian Federation enshrines the concept of deposits, not deposits.

Thus, it is the meaning of the term “deposit” and everything connected with them that is spelled out in Article 36 “Bank deposits” of the Federal Law “On Banks and Banking Activities” dated December 2, 1990 N 395-1, where: Deposit is funds in the currency of the Russian Federation or foreign currency placed by individuals for the purpose of storing and generating income. Income on the deposit is paid in cash in the form of interest.

The deposit is returned to the depositor upon his first request in the manner prescribed for a deposit of this type 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, that participate in the system of compulsory insurance of deposits of individuals in banks and are registered with an organization that carries out the functions of compulsory deposit insurance.

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

Banking legislation in this matter is based on 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 (Civil Code of the Russian Federation) dated January 26, 1996 N 14-FZ, where everything about deposits is legislated: a bank deposit agreement, the right to attract funds into 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 Activities” No. 395-1 of December 2, 1990, attracting funds from individuals and legal entities into 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 (individuals, in banking) individuals.

Economists developing optimal cost programs, including for the family budget, recommend setting aside part of the funds in a bank deposit. In this case, the contribution to bank deposits must be at least ten percent of monthly income.

At first glance, this is too much to refuse to use the money and place it on a deposit account. But, analyzing your spending, you can notice that exactly that much money is spent “in vain”, on absolutely unnecessary things.

By putting these amounts into deposits, you can save a sufficient amount at the end of the year, for example, for a vacation or to buy household appliances necessary for your household. Bank deposits also allow you to save for your children’s education.

Bank deposits are offered under various conditions. Bank deposits provide fairly high interest rates, saving 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 where millionaires started.

If you have temporarily available 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 specified period and interest is paid at the end of the term
• Term deposit with monthly interest payment
• Term deposit with interest paid quarterly
• Savings 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 in deposit accounts on the basis of issuance upon the client’s first request

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

The difference between a deposit and a deposit

At first glance, deposit and deposit are synonymous, but in essence these banking services are slightly different. To answer the question of how a deposit differs from a deposit, briefly, we can say that the first concept is a broader one.

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

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

Money can be withdrawn from a demand deposit at any time, but you will not get much income from it - this is the best option for safely storing a large amount of money for some time (for example, between transactions for the purchase and sale of property).

A deposit is exclusively a banking operation, so you cannot contact 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 type 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/

Is a dual-currency deposit profitable?

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

In such a situation, they can be placed on a dual-currency deposit. Essentially, this is a symbiosis of an ordinary time bank deposit and a currency option, which can help an enterprise make money on free finance.

Feature of a dual-currency deposit: If the currency exchange rate decreases below the level you select, the deposit is converted into an alternative currency at the rate you set.

To make the essence of dual-currency deposits clearer, let's look at an example. Let's say you enter into an agreement with a bank to deposit 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 the deposit is made is 60 rubles.

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

If the ruble has weakened and the dollar costs 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 (inflated) rate.

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

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

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

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

When we talk about banking services, we often hear or mention such terms as deposit and deposit. We see them regularly in television advertising. In the common understanding, the line between these terms has blurred; for many, deposits and deposits are one and the same thing. However, both concepts have both common and distinctive features, and they need to be known and understood in order to better understand the nuances of banking. So, what is the difference between a deposit and an deposit, and what are their similarities?

What is a bank deposit?

Bank deposit- this is a sum of money (both in rubles and in foreign currency) deposited by a depositor into a bank account for the purpose of saving and increasing. Depending on the degree of freedom of access to the deposit, it can be:

• urgent;
• poste restante.

The first group of deposits is characterized by the least access. Money is deposited for a certain period (here we are talking about savings deposits). During this time, the account cannot be replenished, and it is prohibited to withdraw funds in whole or in part. For some types of time deposits, early termination is allowed, but in this case the depositor loses the accrued interest.

The interest rate is the main advantage of time deposits. If a depositor wants to get maximum income from a bank account, then this is the best option.

More options for time deposits: savings (replenishable) and settlement (expenditure-replenishable).

Savings deposits without the right of early withdrawal, but with the possibility of replenishment, and settlement deposits allow you to replenish and partially withdraw, but, as a rule, with some restrictions. Here the interest rate is slightly lower.

Demand deposits have the greatest degree of freedom of access. There are no restrictions here. Funds can be withdrawn at any time, and you can top up your account without restrictions. But the income from such a deposit will be minimal.

Read more about deposits and their types in.

What is a deposit?

A deposit is any valuable asset deposited with a bank. In this case, the financial institution is called a depository. As you can see, unlike a deposit, the object of transfer to the bank can be not only a sum of money, but also other valuables. These can be securities (stocks, bonds), precious metals, antiques and other objects that require special safety.

A deposit can be opened either for the purpose of receiving additional income or without it. If an account is opened in a bank into which a sum of money or a certain amount of precious metal is deposited (the so-called metal account), the depositor will receive interest on this deposit. If a bank rents a safe deposit box in which valuables are stored, the bank charges the tenant a fee for this.

The financial institution has no control over what its clients store in safe deposit boxes - bank employees do not know the contents of the safes. However, by signing a locker rental agreement, the client agrees not to store prohibited items and materials in it (drugs, weapons, explosives, items that pose a threat to others).

A special type of deposit is a securities account. When purchasing shares, they are not given to the investor in kind, but are stored in a depository bank in non-cash form. This type of investment in Russia is not yet so popular among a wide range of people, however, in the future it may become very promising due to the rapid decrease in the profitability of classic deposits (following the key rate of the Central Bank of the Russian Federation).

Similarities and differences between deposit and deposit

Now, understanding what a deposit is and what a deposit is, we can summarize: what is common between these concepts and what is the difference between them. First of all, it is necessary to note the general goal: any deposit, as well as a deposit, is placed for the safety of property.

Another conclusion that can be drawn is that any deposit is inherently a deposit. Therefore, if a depositor deposits a sum of money into his bank account, he has every right to call it both a deposit and a deposit.

However, the opposite is not true: that is, not any deposit can be considered a deposit. And here we can note the following important differences between the concepts under consideration:

• We talk about deposits exclusively in terms of monetary amounts. A deposit will be any valuable property transferred for safekeeping to the bank;
• In the banking industry, it is customary to use the concept of deposit for deposits of legal entities. At the same time, the placement of funds by individuals is called equally contributions and deposits;
• Exclusively a deposit can be called the storage of valuable items in a safe deposit box or shares that are accounted for in a depository bank.

In conclusion, it remains to be noted that deposits and deposits are not only referred to as depositing valuables into a bank. These concepts can also be found outside the banking sector. Thus, the word “deposit” can also be synonymous with the word “pledge” when it comes to depositing a certain amount to ensure subsequent operations. For example, this could be a payment to customs authorities against future duties or advance payments for subsequent rental of real estate.

It is customary to call a deposit any investment with the aim of making a profit. For example, this term is suitable for defining the purchase of a share in an enterprise or depositing funds into an investment fund. The purpose of the contribution may not be to make a profit, but simply to participate in a good cause. An example would be investing in a charitable foundation.

The most common type of investment in many countries of the world is a bank deposit, which is called a deposit in economic terminology. This choice is due to the rapid and rapid development of the economy and investment sphere. What is a bank deposit and why is it so popular? The immediate accessibility and simplicity of this method of investing, saving and increasing funds attract ordinary citizens. But few people can really give a comprehensive answer to the question of what a bank deposit is. But this is the basis of economic literacy.

What can be called a bank deposit?

A deposit is money transferred to a bank at a certain percentage for safekeeping. After a certain period, these funds are subject to return. What is a bank deposit? It's not just money. Vlad can be securities, contributions, payments, precious metals and even real estate. Even without special knowledge in economics and investment, it is easy to monitor the state of affairs on the market in order to be aware of the various factors that affect the financial position of the region. It would seem that everything is simple: you need to deposit the required amount into the chosen bank and just wait for the deadline to collect the interest. Depositors, for the most part, demand certainty in the services provided to them, which includes a constant interest rate. What does it mean? A person wants to have profitable deposits in banks, that is, to receive the entire amount at the right time, taking into account interest, which characterizes profit. The average person is not interested in economic factors and trends. This is why deposits are so popular and honorable.

Impact of inflation

If a person plans to solve all his financial problems with the help of a deposit, then he will be disappointed. Basically, almost any bank provides an interest rate that is slightly less than or equal to inflation. What does it mean? If you decide to go to the bank, then be prepared that inflation will “eat up” almost all the profit. Naturally, a bank deposit can significantly slow down this process, but in matters of increasing capital, a deposit is irrelevant. But you shouldn’t refuse deposits and underestimate them. The vast majority of established and successful businessmen and investors one way or another keep parts of their capital in the form of bank deposits. In this case, such a choice is dictated by an investment strategy, which includes taking into account the expected risk and probable profit. As you know, a bank deposit is one of the safest ways to invest money.

Currency for depositing

Today it is not difficult to invest in a wide variety of world currencies. However, in all countries the most popular deposits are in national currencies, euros and US dollars. Foreign currency deposits usually have lower interest rates and, accordingly, bring less income. Today, multicurrency deposits have become very popular. They are characterized by accounting for each currency separately. As a rule, such deposits are formed on the basis of a compromise deposit - taking into account and the possibility of replenishing the account. A very convenient function is to transfer a currency to another at the current exchange rate on the interbank market. Interest on deposits in banks with a similar function is usually selected individually for each client. This makes multi-currency deposits popular among traders, brokers and dealers in the foreign exchange markets.

Interest rate in bank deposit

To form an investment portfolio, you need to understand the basic concepts. There are two types of interest rates - floating and fixed. The first can change under the influence of government financial institutions that regulate the market. This happens when various factors are taken into account - both economic and political. The fixed rate is directly established when the contract is signed at the beginning of the term and will remain the same all the time until its end. In a floating account, the bank is obliged to guarantee some minimum profit, but it is almost impossible to unambiguously predict the level of income.

It is also necessary to mention the term “capitalization”. It means that the funds that are accrued will take into account the size of the deposit itself plus the interest received for a certain part of the period. It is necessary to take into account the possibility of capitalization when planning your own investment portfolio and calculating the likely profit.