What is a bank deposit: analysis with examples. What is a deposit and why is it needed?

It would seem that there is nothing to say about banks and bank deposits. Probably everyone has (or had) a deposit in a bank. A bank deposit is the most famous, accessible and simple investment instrument that allows you to receive a certain profit.

Bank deposits are the simplest and most accessible form of storing personal savings. Although the profit from the placement barely covers inflation, and in some cases even below it. However, this is more profitable than just keeping money at home under the mattress. The article will talk about how to choose the right bank deposit and what criteria you need to pay attention to first.

Why do you need a bank deposit?

tool for storing money for a rainy day or emergency fund. Every person should have a cash reserve for any unforeseen situations. And bank deposits are the most optimal placement of funds due to their high liquidity.
tool for achieving everyday goals— if you plan to invest money for a short period: from several months to 1-2 years. For what? Or you are planning and saving money for a specific purpose, be it a vacation, an expensive purchase - bank deposits are guaranteed to allow you to calculate the term and the final amount that you will receive along with interest
short-term investment tool. If you plan to invest money in longer-term (and more profitable) financial instruments, but do not yet have the required amount, deposits will help you accumulate it. Further, the accumulated amount can be invested further - in stocks, bonds, real estate, etc. depending on your goals and capabilities.

How to choose banks?

At first glance, this is a simple question. We chose the most reliable banks - open a deposit and sleep peacefully. But there is one circumstance. As a rule, in such reliable banks, interest rates on deposits are much lower than the national average. The difference can be 30-40%. How you don’t want to lose your already not very large profit.

On the other hand, banks with high interest rates on deposits have a risk of license revocation. Of course, this is not 100%, but there is still a small probability.

The law of the market is that the higher the profitability, the higher the risks.

What to do? What should I do?

Since all deposits are insured by the state (at the time of writing - 1 million 400 rubles), you can choose the most profitable deposit (but not at the highest rates, but 1-2% lower). And it is also advisable to distribute deposits across several banks (small diversification).

Which deposit should I choose?

Choosing the right deposit is one of the most important conditions when investing in a bank. What criteria should be used to select a deposit?

Possibility of partial withdrawal of funds without loss of interest. In case of unforeseen situations, you may urgently need money. And withdrawing them from the account means losing all accrued interest. Even if you have one day left before the end of your deposit. Investing for short periods (3-6 months) means low interest on deposits. It is better to find a long-term deposit (1-2 years), for which the rates will be higher, with the possibility of partial withdrawal of funds without losing accrued interest.
Possibility of deposit replenishment. For what? It doesn't matter why. Are you saving for a specific purchase, or are you planning to further transfer money to other financial instruments, or are you simply using the deposit as a financial safety net? By investing additional money, you not only increase your amount, but also receive additional income.
Interest capitalization. This thing allows you to work not only with your money, but also the accrued interest (monthly, quarterly) also begins to generate additional income. Compounding interest on interest or is one of the fundamentals of investing. It is especially noticeable for long-term investment periods (10-15 years), but in 1-2 years it will allow you to earn an extra penny. A trifle, but nice. With help, you can see how additional income will grow due to the capitalization of interest.
Fixed deposit rate. There is a trend in the country towards lowering the refinancing rate, and the interest on the deposit depends on its size. The situation at the end of 2014 and beginning of 2015, when the rate sharply increased by 1.5 times, was rather an exception to the rule.

You've probably noticed that the conditions for deposits in banks are quite strange. Strange in what way? There are, for example, 2 types of deposits: for 1 year with a rate of, say, 10% per annum and a second deposit for six months - with a rate of 10.5%. Logically, it should be that the longer the deposit period, the higher the profitability should be.

And the consultant imposes on you the second deposit. The rate on it is higher, and even automatic prolongation (extension of the deposit after the end of the term).

The fact is that after six months, the rate may be reduced, and then for the same six months they will accept only 9.5% or even 9%. And accordingly, the extension will take place under new conditions, which may be worse than for the initial investment.

By choosing a deposit with a fixed rate for the entire term of placement, you will be protected from these small troubles and will be able to accurately count on exactly the amount of profit for which you have concluded an agreement.

Money is the basis of modern life. Every step a person takes today is connected with financial transactions. Receiving a salary or pension, buying or selling goods, treatment or training - all these actions are accompanied by the receipt/transfer of monetary remuneration. It is not surprising that such concepts as “deposit”, “credit”, “share”, “check”, “payment card” have become familiar even to children. It seems that everything is very simple and clear:

deposit is a cash deposit in a bank with interest;
credit is money borrowed;
a share is a security that confirms its owner’s right to part of the property and to receive dividends;
check and payment card are means of payment.

But in fact, each financial instrument has a deep economic essence and a complex structure, which only specialists can thoroughly understand. Let us dwell in more detail on the question of what a deposit to a bank is, what types of deposits there are and their characteristics. Also, let’s figure out what deposit rates are, and what risks and benefits exist for depositors?

A brief excursion into history

Historical information will help you better understand what a deposit is and grasp the very essence of deposits.

In ancient Greece, the most reliable places were temples, so residents often turned to priests with a request to protect their wealth from thieves and robbers. Valuables were placed in clay pots on which the owner’s name was written; the pots were securely hidden in the recesses of temple complexes. At the same time, the Hellenes paid some compensation to the priests for saving their treasures. The owner could pick up his pot at any time. This was very reminiscent of modern depositories in banks. But gradually the relationship developed and became more complicated, agreements were concluded between the owners and the priests, according to which the priests could use the values transferred to them for storage, invest them in profitable enterprises, the profit from which was divided between the custodian and the owner of the funds.

Gradually, this practice of relations spread to neighboring states. Legal formalization of such transactions was found in 350 BC. e. in Ancient Rome. It was here that the first special institutions appeared that offered to take citizens’ money for safekeeping under certain conditions. All deposits were recorded in accounting books, and the concept of “interest” appeared.

But it was not until the 12th century that institutions resembling modern banks arose in Western Europe. They already provided a fairly wide range of services: they not only accepted money for storage, but also issued loans and carried out settlements between clients. This business turned out to be very profitable, and the number of merchant bankers grew rapidly. In the 15th century, all major European cities accepted deposits from the population, from which loans were issued. Also, the population's money was used to develop agriculture and production. This is how the concept of investment was born.

In Russia, the first deposits were accepted in 1889.

Over the millennia, the essence of the deposit has not changed. In both the ancient and modern world, a deposit is funds (money or other valuables) transferred to the bank for safekeeping on the terms of urgency, payment and repayment. In simple words, a deposit is money that the client lent to the bank for a period of time in order to receive a profit in the form of interest.

Characteristics of deposits

We have already found out what a contribution (deposit) is, now let’s figure out what characteristics this financial instrument has:

Both individuals and legal entities have the right to make a deposit. Any deposit must be formalized in a written agreement between the bank and the client. The deposit can act as collateral for the loan.

Risks and benefits for investors

Bank deposit - what is it from the point of view of the population and banks? For a depositor, this is, first of all, an opportunity to save their money from thieves and annoying borrowers, as well as an opportunity to receive additional income, and for financial institutions it is an investment tool. The Bank uses borrowed funds to issue loans, form reserve funds and equity capital, invest in shares and other securities, as well as in business projects. Thus, the financial institution is interested in attracting as many depositors as possible.

Often, in pursuit of clients, they are promised “mountains of gold,” which is not always true. They will help you avoid falling for the bait 5 golden rules:

Despite the presence of risks, deposits have undoubted advantages:

“money should bring money,” says the old wisdom, and a deposit is a stable source of passive income;
you don’t need to be afraid of thieves and you don’t have to lend your hard-earned money to anyone;
you can save up for a major purchase, a long-awaited trip or education;
the investor can apply for a loan at preferential interest rates.

Now it is clear what a deposit in a bank is, and what main characteristics and advantages it has.

Bank deposits are not suitable for investing your own funds in order to obtain a stable income. But they do a good job of minimizing the negative impact of inflationary processes. This article will discuss what this toolkit offers the average citizen and which variations are best suited.

general information

First, let's understand the general terminology. What is a bank deposit, also known as a deposit? This is the name given to the amount of funds accepted by a financial institution for a specific or indefinite period. The Civil Code of the Russian Federation obliges them to return the money taken along with interest in accordance with the terms of the concluded agreement. At the same time, a citizen has the right to take away material assets belonging to him at any time. In this case, the bank cannot refuse him. But it is quite possible that he will not open the deposit. This is practiced when providing false personal information, as well as when there is a suspicion of money laundering obtained by criminal means. To open a deposit, you just need to present your passport.

What types of bank deposits are there?

There are various classification approaches and categories. As part of the article, we will get acquainted with the following contributions:

I. Poste restante.

II. Urgent.

III. Conditional.

As a rule, they are opened in rubles, dollars or euros. Although it is possible to use more exotic currencies such as the Japanese yen, Swiss franc, British pound, Chinese yuan or something else. It is also possible to open multi-currency deposits. Which type of deposit is better to choose? And this depends on the goals pursued and the necessary support. To do this, you need to familiarize yourself with the advantages they have. Let's take a short excursion.

Escrow deposit

The bank deposit agreement provides for the return of funds only if a certain event (circumstances) occurs (or, conversely, does not occur), as envisaged. It should be noted that this is not a very popular financial instrument. Where and who uses it and under what circumstances? Let's look at a small example. Let's say a father has a daughter. He wants her to enter adulthood as a wealthy person. For this purpose, he opens a conditional deposit, to which a thousand rubles will be credited every month. Only his daughter can remove it after she turns eighteen. Since the term is quite long, the deposit works according to the interest capitalization scheme. What is such a bank deposit? The interest accrued by the bank is added to the principal amount, and funds also begin to flow into them.

Deposit on demand

In this case, no specific storage period is established. This is the most convenient and simplest contribution in terms of interaction. You can safely deposit or withdraw any amount without time limits. Similar offers are found in all banks. Funds deposited are available at any time. But, alas, you won’t be able to protect your money from depreciation. Bank rates on deposits of this type are not high. Moreover, they are very low. At best, the financial institution will offer 4% per annum. But don’t be surprised if it’s even less, like 1%. For whom are such deposits created? Most often they are used by people who do not want to keep money at home. But they may be needed at any time. With an eye to this category, the demand deposit service is offered. After all, it allows you to store money in a safe place and have access to it at any time.

Time deposit

This is the most popular category. These deposits are opened for a certain period, before the expiration of which a person cannot withdraw his funds. The longer the deposit is opened, the higher its profitability. Some banking institutions also rely on the deposited amount. The higher it is, the higher the bet. At the end of the term, you can receive your funds or put them back in the bank. This is often accompanied by an additional rate increase. If you are interested in investment, this is the most suitable option. In most cases, banks only offer to minimize inflation, but if you look hard enough, you can find a time deposit that will give a one or two percent increase in the real purchasing power of the money deposited. When time runs out, then, as a rule, after a certain number of days (three, five, seven) the deposit is automatically renewed. To find out the scheme under which the bank operates, you must carefully read the concluded agreement. A negative feature is that if the contract is terminated early, the interest rate drops significantly. Therefore, it is necessary to evaluate the situation critically. Conditionally fixed-term deposits are divided into accumulative and savings. What makes them special?

Savings deposit

This is a traditional contribution with a minimum of functions. A useful choice for those who do not occupy their thoughts with thoughts about generating additional income. This toolkit is used simply to save your funds. It can be used to avoid wasting money on every little thing. Since the instrument itself was invented quite a long time ago, it operates according to ancient rules. Although some influences from recent times can still be found. First of all, this applies to the capitalization of interest. But even this approach to the matter is not found everywhere. What is the essence of this approach? With capitalization, the amount of bank deposits at the end of the month is replenished by the amount of accrued interest. And funds are starting to flow onto them too. When choosing a savings deposit, you need to familiarize yourself with the requirements. First of all, you need to find out if it is possible to replenish your deposit. It would not be amiss to inquire about the final calculation (when it is carried out). After all, you can come four days after the end of the deposit period, and it turns out that it has been extended for another year.

Savings deposits

These are deposits for which the possibility of increasing the initial amount is provided. They are used to accumulate a certain amount of money to make a large purchase, pay for an expensive trip, or do something else that requires significant funds. An important advantage is the fact that interest is charged on the entire amount (both principal and additions) provided by the bank to the person. Savings deposits are used by those people who want to increase the amount of their money. Very often, their interaction with complex programs is also provided. Let's look at a small example. A person wants to buy his own home. But he doesn’t have the necessary money even for the down payment. Then he opens a specialized target savings deposit, from which he begins to collect the necessary funds. In this case, the bank is put on notice of its objectives. After the minimum required amount has been collected, the financial institution provides a loan for the purchase of an apartment, for which there are already funds.

Separate category

The cases discussed above are the most typical for the general situation. But recently other options have become widespread. Thus, settlement deposits are successfully capturing the market. Their opening is usually accompanied by the issuance of a debit card. It is envisaged that the deposit will receive money periodically (for example, wages). In this case, a certain percentage is paid on the remaining balance once a month. A multicurrency deposit provides the ability to store funds in units of several countries. In this case, a separate interest rate is charged for each of them. And closing the trinity are specialized deposits that are aimed at a certain category of clients - children, pensioners, students, veterans, employees of large enterprises, and even bank clients who have been loyal for a long period of time. As you can see, there are bank deposits for every taste. The main thing is to have money.

How to choose a bank deposit for yourself?

First you need to decide on the goal. For what/who? What is more important - to earn or not to lose? In general, the features and specifics were considered in quite detail. If you want to give a gift to your children when they reach adulthood, then, of course, a conditional deposit will do. Do you want to save money and not lose it? Well, in this case too, the bank has something to offer. By the way, if it is planned that the period will be long, it is very advisable to familiarize yourself with the option that provides for capitalization. You need to calculate the benefit from it in comparison with a regular deposit. It is not possible to say for sure that any one option is the best, but very often they provide significant advantages.

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Even in a small town variety of deposit programs, which banks are vying with each other to offer, can make the future investor confused. However, it is worth knowing that there are several basic parameters that you should pay special attention to when choosing a program. If they meet your expectations, then the investment is likely to be optimal and can be considered for financial benefit.

To answer the question - which deposit is the most profitable, we will try to understand the main nuances of choosing a profitable deposit. So, let's consider the main criteria:

The deposit term can range from several months to 3-5 years; there are also demand deposits. The choice depends only on your capabilities - while the deposit is in the bank, in most cases it will be impossible to use the money. And in case of early closure of the deposit, the bank will recalculate interest at the minimum rate.
The deposit amount ranges from several thousand to several million rubles. In view of the protracted crisis, many banks strongly recommend not to exceed the “bar” of 1.4 million rubles - this is precisely the maximum amount of compensation under the deposit insurance system. If you have a larger amount, divide it into several deposits.
The ability to replenish a deposit is useful if you use a bank account as a savings account, placing free funds on it.
Deposit currency – the choice depends on the currency of your savings, as well as expectations of exchange rate fluctuations. For example, when the ruble depreciates, it is better to store funds in foreign currency, and vice versa.
The possibility of partial withdrawal of funds reduces the interest rate, but at the same time is more attractive for clients, as it gives the opportunity to partially manage their funds. In this case, you should carefully read what amount is the minimum balance.

When deciding on non-financial parameters, it is worth considering that each of them directly affects on the interest rate on the deposit. The fact is that the most attractive deposits for clients (with early withdrawal, for a short or, on the contrary, too long term) are unprofitable for banks, therefore the rates on them will be the lowest.

The influence of the term and amount of the deposit on the interest rate

Main influence on the interest rate influence the amount of the deposit and its term. Banks offer the most favorable conditions for large medium-term deposits, that is, those whose amount exceeds 300-500 thousand rubles, and the period is 6-18 months.

Possibility of depositing and withdrawing cash and interest rate on deposit

The ability to change the deposit amount has a huge impact on the size of the bet, and depending on the client’s actions, the effect can be both positive and negative:

Opportunity	Impact on interest rate	Example (deposit for 100 thousand in Sberbank for a period of 1 year)
Deposit without partial withdrawal and replenishment	Maximum interest rate	5,90%
Deposit replenishment without withdrawal	The rate is lower than for non-replenishable deposits; an additional increase in the rate is possible if a certain “threshold” of the deposit amount is exceeded	5,50%
Replenishment, withdrawal up to the threshold amount (initial deposit amount)	The rate is lower than on deposits with replenishment without withdrawal	4,75%
Unlimited demand (savings) – free replenishment, withdrawal up to a minimum amount (1-2 thousand rubles) or unlimited	The interest rate is minimal, 2-3 times lower than on other deposits	Up to 2.3% depending on average account balances

Classic deposits without withdrawal or replenishment bring the greatest benefit to clients. Some banks offer withdrawal of accrued interest without changing the interest rate.

The Demand Deposit, which is very popular among depositors, is the least profitable from a financial point of view. As a rule, the rate on such a deposit does not exceed 1-2%, that is, it does not even compensate for the depreciation of money due to inflation.

How profitable is interest capitalization?

Advertising offers for bank deposits are replete with references to the benefits of capitalization. However, in reality this often turns out to be just an advertising ploy that does not bring real income to the investor. What is capitalization and what are its advantages?

Banks can charge interest on deposits in two ways:

Simple interest, that is, the income accrued for the month is placed in a separate account and does not participate in subsequent transactions;
Interest with capitalization, when the income accrued for the month is included in the total amount of the deposit, increasing it. As a result, next month interest is calculated on the increased deposit amount and will be higher.

At first glance, deposits with capitalization are significantly more profitable. But this would be the case in an ideal situation if banks offered the same conditions and rates for both types of deposits.

How to calculate the benefit from a deposit yourself

To avoid the situations described above, you must carefully select a deposit program and pay attention not only to the interest rate, but also to all related parameters. The ideal option would be not to contact all the banks in the city, but to collect information about deposits from official websites on the Internet.

Having chosen the offers that are most suitable for non-financial parameters, calculate the income on them, taking into account your personal intentions (including withdrawal, replenishment of funds during the contract period). Even without financial education, calculations are quite simple: on bank websites and large portals you can find online calculators that calculate interest automatically.

You only need to enter the amount, deposit term, interest rate, possibility of capitalization, proposed operations with the deposit, and in a few seconds the program will determine how much income you will receive from this deposit. By comparing several programs, you will definitely choose the most profitable one.

conclusions

When talking about the benefits of bank deposits, one should distinguish between financial benefits and compliance of the deposit parameters with the client’s capabilities. So, in many cases, the best option would be to choose a deposit that is less profitable, but more attractive in other respects. A profitable deposit is not the one that has the maximum interest, but the one that brings the greatest profit.

The concept of “deposit” comes up quite often. The fact is that deposits have long become an integral part of the global financial system. Moreover, deposits are part of the daily lives of tens of millions of people around the world. So what does the term “deposit” mean?

A deposit (or, as it is also called, a bank deposit) is a certain amount of money that is transferred by a person to a credit institution (for example, a bank).

The purpose of transferring funds is to receive some income (usually in the form of interest), which is generated as a result of carrying out certain financial transactions with funds.

How is interest calculated on a deposit?

Interest is paid for any period of time, and not just for each week or month of a certain period of time. This means that if you choose a 7% deposit for one month, you will receive 7% of the entire deposit amount only at the end of the week or month. If you choose a bank deposit of 6.8% for four months, then the payment of 6.8% of the entire deposit amount will occur only after these 4 months, and not 6.8% for each individual month.

It is important to understand these and other nuances, since some people do not understand basic financial issues related to deposits.

Deposit agreement

In a bank deposit agreement, the bank that accepted the amount of money received from a person is obliged to return the entire amount of the cash deposit and pay interest on it under the conditions and in the manner that were previously provided for in the agreement signed by a representative of the banking institution.

It is worth saying that in banking practice there is a concept of “a citizen’s renunciation of the right to receive a bank deposit on demand,” however, from a legal point of view, such a citizen’s right is void.

When is interest calculated?

All interest on the total amount of a bank deposit is calculated from the day following the day the deposit is received by the banking institution. The accrual occurs until the day when the amount is returned to the depositor or until the day when the bank deposit is closed by the depositor himself.

Typically, the depositor (an individual who transferred his funds to receive interest income) has the right to dispose of his own interest. The depositor has the opportunity to withdraw interest upon expiration of the period for payment of all interest that was previously specified in the agreement.

You can also add interest to the entire bank deposit amount. Adding interest to the total deposit amount is called interest capitalization. Capitalization of interest allows (in some cases, when we are talking about a high interest rate) to significantly increase the entire amount of the deposit, on which the remaining interest is calculated.

There are periods when the state's economy develops at a normal pace. At such times, bank deposits are the least profitable (but also the least risky) form of investment. At such times, the bank deposit serves solely as a so-called “minimum guideline” that is necessary in the calculations.

What are the types of deposits?

Types of deposits:

Deposit on demand. This type of deposit without specifying any storage period will be returned to the depositor upon his first request. Traditionally, savings deposits accrue some kind of interest. These interest rates are slightly lower than those on time deposits. Also, demand deposits have wider functionality. It lies in the fact that demand deposits can, by agreement with a banking institution or according to the rules of individual countries, be a special facility in a checking account in the bank itself.
Time deposit. A time deposit is a deposit with interest that is deposited for a certain period of time and withdrawn only upon expiration of the initially agreed period. Such deposits have less liquidity than savings deposits (deposits), but they can bring a much higher percentage of profit.

Deposit security and insurance

Deposit insurance means that during the bankruptcy of a banking institution, the depositor, who entrusted his funds to the chosen bank, will fully (or at least partially) receive back all the funds invested in the deposit in the shortest possible period of time.

Payments for deposit insurance are made by special financial communities (funds) created by the state or the entire banking system.

History of deposit insurance

The very first banking insurance system was created back in 1933. Today it is called the Federal Bank Deposit Insurance Corporation.

According to publicly available information from the International Association of Deposit Insurers, banking deposit insurance systems operate in more than hundreds of countries around the world. For example, in European countries, each state that is part of the European Union is obliged to control the processes of creating and ensuring the operation of at least one bank deposit guarantee system on its own territory.

This obligation of European countries is dictated by order of the European Parliament and a special council created to ensure the safety of the deposits of European citizens. Not a single bank in Europe that operates legally can refuse to take deposits from individuals unless this bank is a member of one of the bank deposit guarantor systems.

What do we have?

In the Russian Federation there is a special law that also regulates the activities of banking institutions in this difficult issue. This law is called “On insurance of deposits of individuals in banks of the Russian Federation”. The law came into force back in 2003. According to the law, every bank that is one of the members of the bank deposit insurance system, in the event of losing its banking license, is a member of the insurance system.

This means that if the bank becomes bankrupt, the state will be obliged to return up to 1,400,000 rubles to depositors (individuals).

Features of deposits in Russia

All private (commercial) banks operating in the Russian Federation undertake to transfer to the Central Bank part of the funds that were deposited. This is called the norm of so-called “required reserves”. Otherwise, this norm is called a reserve system.

Some enterprises also cannot place their money in deposits, so they are forced to draw up a bill of exchange. A bill of exchange is a veiled form of deposit that is needed specifically for enterprises and some companies.

Taxes on deposits

In relation to income received from bank deposits, the tax base is determined as the excess of the amount of interest that was accrued under any terms of the agreement.

Under some conditions, this rule does not apply, however, the rules change periodically, so if you want to take advantage of any benefits, you should check all the information you are interested in with the Central Bank or the commercial bank chosen for the deposit.