What is the contribution?
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Somehow one very influential and rich person said: “If a person needs money to exist, he is looking for work. If he wants to live, but not to exist, he opens his business. ” The modern financial sector gives a lot of opportunities that can make you work, not yours, but your money. One of them is bank deposits and deposits. What is a deposit? The Latin word "depozitum" literally translates as "thing deposited." In the modern sense of the word "deposit" refers to the contribution of funds at interest in such financial structures as banks, savings banks and investment funds.
What are the types of bank deposits?
Currently, there are a large number of types of bank deposits. But among them it is easy to distinguish three main ones:
- Term deposit.
- Demand deposit.
- Conditional deposit.
What are the differences between them? A term deposit is made by the depositary for a certain time period. It is divided into segments, after the expiration of each depositor receives a certain percentage. Early withdrawal of funds leads to a loss of interest.It is possible to withdraw the entire invested amount without loss of profit only after the expiry of the period specified in the contract. All key points are negotiated in advance and entered into the document, which then is the basis for settling controversial issues.
A demand deposit has another name - a savings deposit. It differs from the first only in that it does not have clear indications of the shelf life of the invested funds. The client can pick them up at any convenient time without loss of interest. It is very convenient, but less profitable, since the interest of such deposits is low.
A conditional deposit is made not by the depositor himself, but by another person who draws it in the name of the depositary. The conditions for the management of the invested funds are clearly attributed in the contract. For example, it specifies all the circumstances in which the depositary can receive interest, withdraw or increase the amount invested at its discretion.
How to choose the best option?
After a brief educational program, it becomes clear what a contribution it is to decide how to choose the most optimal option for oneself.Specialists recommend choosing an investment option to pay attention to a number of fundamental parameters. It:
- Timing. The demand deposit, as already indicated above, has no time limit, but interest is calculated at a rate lower than the market rate. A term deposit provides good earnings on interest, but the amount on the account must be round and constant. If there is a desire to reduce it or increase it to the final time period, it will be necessary to reissue the contribution and lose interest. And this is not always profitable.
- Currency. Banks offer to make currency, multicurrency and ruble deposits. The multi-currency deposit allows you to place money in three currencies: in rubles, US dollars and euros. This option is beneficial only if there is time to constantly monitor fluctuations in rates.
- Amount amount. The higher it is, the greater the interest income the depositary can receive.
- Replenishment options. This option provides the right to save money.
- Prolongation of the deposit - automatic extension of the prisoner's actioncontract on the same terms
- Interest payment scheme. It is important to pay attention to how interest is calculated (once a month or by the end of the contract).
- Is there a right of partial withdrawal.If there is, it is necessary to specify in advance the minimum and maximum amount.
Where to invest money at interest? Investing money in banks, not in mutual funds, is safer. Mutual funds do not give accurate data on interest, besides, some of them are very risky, so they are often unprofitable. Banks provide lower interest income, but they are reliable and stable. In our difficult time, it is better to make deposits in state banks. How to put money in Sberbank? The types of deposits in this financial institution and the receipt of profits from them depend on the timing of each specific deposit. The longer they are, the higher the interest rates. Having chosen a suitable deposit option, the depositor must write an application in any Sberbank branch regarding the acceptance of funds from an individual, present a passport, and if the pension is drawn up by a pensioner, then a pension certificate. On the basis of these documents an agreement on opening a deposit will be drawn up.