Bank deposits or cash deposits are a conservative instrument for increasing capital. There are several types of deposits that differ in functionality, purpose, placement periods and type of currency.
In this article we will tell you about the types of deposits and how they differ from each other. You will also learn about the most profitable and reliable deposits offered by Sinara Bank.
What is a bank deposit?
A bank deposit is a sum of money that an individual transfers to a bank for temporary storage. During the period that the funds are at the disposal of the financial institution, they are used to purchase shares, bonds and other operations in order to make a profit. It is generated through loans, trading on currency, raw materials and securities exchanges.
Types of bank deposits
Banking institutions offer clients various types of uk mobile database deposits, which differ in some parameters:
Interest rate. This is the percentage that the bank pays its client for using his money. The rate can be constant throughout the entire term or floating, depending on the parameters specified in the agreement.
Deposit term. Fixed-term deposits are opened for a clearly specified term. Open-ended and demand deposits have no specific end date. The interest rate is always higher for fixed-term deposits due to the guarantee that the bank will be able to use the client's funds for the period specified in the agreement.
Deposit currency. Deposits are placed in national and foreign currencies. There are also multicurrency deposits, which consist of currencies from different countries.
Possibility of early withdrawal and replenishment. There are deposits that can be replenished and withdrawn, and there are those when the depositor does not have access to funds for the entire period of the agreement.
The type of deposit to choose depends on the purpose. For some, it is important to save money with at least partial insurance against inflation in the form of an interest rate. Other depositors simply want to keep money in a safe place at a minimum interest rate.