Deposit accounts in banks allow to increase savings and adjust the distribution of their own finances.
When choosing a savings account you should know the basic parameters and characteristics.
Deposit Account - a contribution of money at interestrate and at a certain time. The investor enters into a contract with the bank, according to which it will be possible to pick up your contribution not previously indicated in the contract. Throughout the term of the deposit bank manages depositor funds at their discretion. The longer the term of the deposit, the interest rate is usually higher for him.
There are two types of deposit accounts: term and demand deposits. Term deposit account is opened for long term storage in the bank. Account Holder shall specify in the contract period by placing and can not withdraw their funds early. In case of early termination of the contract the investor will not be paid interest accumulation. Demand deposits include the possibility of a partial or complete withdrawal. Such contributions under the Bank receives a smaller percentage as the depositor can withdraw your deposit at any time.
By placing the money in a deposit account, the client may not dispose of these funds, such as Bankova plastic cards.
Bank sets interest rates withwhich can be found before the signing of the contract. The interest rate will be paid according to the contract only after a period, but on the condition that the customer will not be violated by the contribution conditions. Many banks set the rate of interest depending on the investment, the greater the amount and term of the deposit, the higher interest rate. Sometimes banks announce short-term action, taking deposits for a short time at high interest rates. Usually this is due to the fact that banks are urgently needed funds for the commission of any beneficial financial transactions. In this case, the bank is ready to increase the standard rate on deposits, to quickly raise the necessary amount.
How to open a deposit account
In order to open an account, you should familiarize yourself with the various proposals of banks and choose the optimal settings. As a rule, high-interest offer small or little-known banks.
Do not make long-term contributions to thequestionable organizations or newly open a bank, even if the interest rate is the highest among all the proposals. Such organizations may be financially unstable, and at any time declare bankruptcy. In this case, the state is obliged to return to investors invested funds, but not more than 700 000 rubles. To open a deposit you must pay a visit to the bank. Bring the money, passport and TIN.