Deposit - this is a personal account opened by the bank's customer.
On deposit accounts can place an unlimited amount of money, while selecting the most advantageous programs and terms.
The meaning of the deposit account
Opening a deposit account in a bank, a customerchooses the conditions of a possible range of services offered. During all the time placing funds accrued some interest in accordance with pre-agreed conditions. Deposit accounts can be opened not only physical but also legal entities.
The amounts of the deposits is not limited, but there isTypically, the minimum size of contributions. To open such an account at any time. The main conditions of the deposit are considered strictly fixed term cash storage and loss of use of funds by the client prior to the expiration of the contract with the bank. Interest at the same time you can remove or regularly accumulate. Cash placed on deposit returned in full after a predetermined date.
Types of deposit accounts
All types of deposit accounts can be divided into twomain categories - the terms of the "on demand" program and "urgent." Each deposit variety has its own distinctive features, advantages and disadvantages. All the nuances usually prescribed in the contract with the bank. Before the signing of these documents is better to carefully examine all the conditions, and if necessary, obtain further advice from the staff.
If you have savings and you wantincrease their income, then the best option would be to establish "urgent" deposit account. In this case, you should pay particular attention to the main condition - the money you will not be able to stay in for a pre-agreed period. That account is convenient to use if you are sure that the money you will not need in the near future.
"On demand" Deposit accounts have moreflexible terms, but the interest rates on them are generally lower than those of term. In this case, you place money on your account, and you can remove them completely or partially before the contract specified period.
Features of deposit accounts
To open a deposit account can be usingany currency, which is available in the bank's statement. In addition, each depositor provides insurance services contribution, which implies a refund the entire amount of the deposit upon the occurrence of the bankruptcy of the organization.
Interest received from the deposit account,are taxable. Such a rule is set and regulated by the current legislation. When withdrawing funds held 13%. Accrual of interest, depending on the program selected, can be monthly, quarterly or capitalized when accrued funds are included in the total amount of the deposit account.