Deposit rates: what they depend on and how they are formed
Posted: Wed Feb 19, 2025 3:24 am
If you keep your money under your mattress, your savings will depreciate. To beat inflation, you need to invest your money, and one of the most reliable investment methods is bank deposits. In this article, we will tell you what your profit depends on and how the interest rate is formed in the context of inflation.
What are the rates?
If you see an offer "Up to 15% per annum", this does not singapore mobile database mean that you will actually earn that much annually. The wording may mean interest under certain conditions, peak income over a short period, or even a possible interest that will never be reached. It all depends on the scheme by which the interest is calculated. We will tell you about the types of rates that can be found on the financial market.
Fixed
This is the most understandable way of calculating interest, which does not depend on any external factors. You open a deposit for a specific period and can easily calculate how much you will earn at the end.
A fixed interest rate in an inflationary environment is a risk for a credit institution. Therefore, it is found only in programs with restrictions on the amount and term. Example: a product with a fixed interest rate - "Maximum" It allows you to invest from 10,000 to 500,000 ₽ for 90 days at a fixed #rate#3054#/rate# per annum.
You cannot withdraw the invested money for 90 days, otherwise you lose the accumulated interest. Replenishment of the deposit and capitalization are also not provided. With an investment of 500,000 ₽, you can earn 20,959 ₽ in three months.
What are the rates?
If you see an offer "Up to 15% per annum", this does not singapore mobile database mean that you will actually earn that much annually. The wording may mean interest under certain conditions, peak income over a short period, or even a possible interest that will never be reached. It all depends on the scheme by which the interest is calculated. We will tell you about the types of rates that can be found on the financial market.
Fixed
This is the most understandable way of calculating interest, which does not depend on any external factors. You open a deposit for a specific period and can easily calculate how much you will earn at the end.
A fixed interest rate in an inflationary environment is a risk for a credit institution. Therefore, it is found only in programs with restrictions on the amount and term. Example: a product with a fixed interest rate - "Maximum" It allows you to invest from 10,000 to 500,000 ₽ for 90 days at a fixed #rate#3054#/rate# per annum.
You cannot withdraw the invested money for 90 days, otherwise you lose the accumulated interest. Replenishment of the deposit and capitalization are also not provided. With an investment of 500,000 ₽, you can earn 20,959 ₽ in three months.