What is a deposit

The deposit is the money amount that the depositor transfers to the banking institution. At the appointed time, the money is returned to the depositor on agreed early conditions. In all banks, deposits differ in interest rates, the duration of the contribution and its size.

What is the benefit from the deposit for the depositor and the bank? The funds transmitted from the depositor to the bank are fully income into the disposal of a banking institution. Due to these funds, the Bank issues loans to other persons and carries out other financial transactions. The depositor time receives back its amount and a small bonus - interest from attached funds.

The bank concludes an agreement with the Depositor, where the amount of the deposit is indicated, the interest rate. The contract immediately stipulates the accrual scheme and the frequency of payments. Of course, it is possible to break the contract and get money back, but at the same time the bank has the right to finfing you. You can also increase the amount of the deposit, respectively, the gained interest will increase.

You can arrange a deposit in a bank for a period of 1 month and up to several years. At the end of the contract, there is the possibility of prolongation of the contribution, that is, extension without the presence of the investor. The magnitude of the percentage rate on the deposit depends on the currency of the deposit.

It must be remembered that the maximum interest rate in the rubles of the Russian Federation should not exceed the refinancing rate, which is established by the Central Bank of the country. In case of exceeding the depositor is obliged to pay a tax of 35%. The tax is subject to only the amount exceeding the set rate.

Before contacting the bank and entrust his money to him, read the information about the bank and types of deposits on the website of the institution. In the same place you can independently calculate your interest rate - the profit received from the contribution. Choose a bank with a good reputation and favorable conditions for you, but do not chase at a high interest rate - this may indicate that the bank will soon become bankrupt and your money will disappear.