Bank deposits - that is the deposit?Interest on deposits .All secrets .

It would seem that may be easier to bank deposits.He took the money, carried her to the bank, and put it on deposit.Customer satisfied, satisfied with the bank and the money charged.So it looks at first glance.In fact, not to be trapped and really increase your income, you need to have a holistic view of the deposit.First of all, you need to clearly understand that the bank is a structure aimed at making a profit.The bank is interested in its profits, and deposits only one of the means to obtain it.

cooperation of banks with customers.


saying about the rescue of drowning is familiar to everyone.In the case of cooperation with the bank, it will be very handy.The mechanics is very simple and entertaining.Making a deposit, the bank receives the money at its disposal.At the end of the deposit term the customer will receive, for example, 12% in the form of interest.During this time, the bank will give money on credit under 20%.Having thus 8% of net profit.As a result, an interesting picture - the lower

the interest rate for the investor, the more you earn the bank and vice versa.


shows an example to illustrate how one must be careful when you make a deposit.All information must be gathered in advance.Even going to the bank, the investor must be sure I made the right choice.At the same time, possessing sufficient knowledge to enable him to conclude a deal.Do not become a bargaining chip in the big game.Of course, information on deposits are now many and not difficult to get confused.

main thing is not to hurry and to dismantle all is quiet.Money does not like to rush and do not run away if they are not customized.Hasty decisions can not only significantly reduce the level of income.But even jeopardize the very existence of the depositor's financial security.In this connection, it is worth repeating again - decisions should be made carefully and wisely.

What is the deposit?

In simple words, the deposit - money that the client sends to the bank for a limited period with certain conditions.Under the terms are understood as interest themselves, and their calculation formula.Pay attention only to the interest rate is not only the biggest but also the most common mistake.The way these percentages will be added, plays a major - if not the most important - role.

Deposits are immediate and "on demand".The latter is very similar to the first, only the interest rate is usually much lower.And conditions of the contribution may be different again.Which category of deposits to choose depends on personal preference, timing and other conditions.As for the more traditional, fixed-term deposits, they are divided into three categories:

• Short-term deposits - a contract is usually concluded for a period of 1 to 3 months;
• Medium-term deposits - in this case the period is increased from 3 to 9 months;

• long-term deposits - those considered to be all deposits for a period of 9 months.

important to understand that deposits on term deposit can be obtained only at the end of the deposit term.

How interest is calculated?

Depending on the type of deposit and investor objectives vary significantly, and interest calculation methods.Charging can be done:

• at the end of the deposit period;
• at regular intervals (monthly, quarterly, etc.);
• with the capitalization of interest;
• without interest capitalization.

main differences it's best illustrated by an example.Interest on deposits, which are awarded at the end of the period, just added to the principal amount.For example, putting on deposit $ 100under 12% per annum, for the period after the customer receives in the hands of 112 USDA similar situation with interest at regular intervals.If interest is charged, say, once a month, the calculation is made using the following formula:

(100 * 0.12) / 12 = 1

Where 100 USD- Deposit amount, 0.12 - 12% per annum, 1 cu- A monthly percentage.Interest payment allows the investor to obtain a stable monthly income.At the end of the deposit term, he will get back $ 100

Miracle capitalization of interest!


deciding to put money on deposit, the investor must be sure that the money he did not need the period of the contract.If this confidence is present, it is very good bargain can be regarded as deposits with interest capitalization.A method of charging interest in this category of deposits is very similar to the above.With one important difference.Interest once a month or once a quarter attached to the total amount of the deposit.And following the accrual occurs already considering such interest.Example:

1 month: (500 * 0.12) / 12 = 505 USDat the end of the first month;
2 month: (505 * 0.12) /12=510.05 USDat the end of the second month, etc.

not difficult to guess that at the expiration of the term of the deposit, the depositor will get your hands on a pretty decent amount.The difference is even more evident when compared with the deposit without interest capitalization.There are also deposits, which allows at any time to add money to the basic account.In this case, everything is simple - the interest will be calculated taking into account the added amount.The greater the amount, the more profit.

Which currency to choose for the deposit?


Oddly enough, but the currency still quite simple.The contribution is often carried out in the currency, which is available at the time of the transaction.Or, in the one which the client wants to have at the time of the expiry of the deposit term.Conversion unnecessarily from one currency to another will only increase the monetary loss.For those who have opened a deposit additional monthly receipt of interest, it is most advantageous to do so in local currency.

on what else to pay attention?

factors listed above are at the opening of the main deposit.But there are a number of subjective factors that should also be addressed.Among them are:

• bank's reputation and professionalism of its employees;
• simplicity of the deposit;
• the availability of information on account balance and other;
• tariffs for maintenance and other.

Such moments will allow to establish fruitful cooperation.Which, among other things, will be pleasant and comfortable for the investor.