Features of long-term deposits. Settlement and cash services Long-term deposit

The presence of an online cash desk is a prerequisite for work for entrepreneurs in our country. What to do if the cash desk stopped transmitting data, the lights went out, the Internet turned off and another 33 misfortunes happened, we will tell in the article.

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7 non-obvious situations in which you have to pay tax

Until the end of April, Russians must file a tax return for the last year. It may turn out that you have to pay tax, although you do not suspect it. In this article, we will consider cases where this is possible.

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How banks worked in Soviet times

Banks of the Soviet era and our days - are there many differences between them? In the article we will tell you how the loans and mortgages of the times of the USSR differed from modern ones, what was the alternative to MFIs, what were the insurances and what has changed in the handling of finances.

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How much do employees of Russian banks get paid

Frank RG has compiled a rating of Russian financial institutions in terms of employee benefits. In this article, we present its results and focus on some features of the remuneration of employees of banks and financial corporations.

• Analytics

  "Opening": investment products become an alternative to deposits

  According to Otkritie Bank, Russians have recently been increasingly withdrawing free funds from deposit accounts and investing in investment products. The population has about 30 trillion rubles in their hands. In the fall of next year, the financial structure plans to hold an IPO. Perhaps the bank will sell securities to private investors.

  12 Feb 2020

• New Product

  Gazprombank presented the deposit "Success"

  Gazprombank launched a new deposit service. The profitability of the “Success” deposit is 6.3% per annum, the period of placement of funds is 181 days, the placement amount is from 2 to 15 million rubles. departments

  10 Feb 2020

• New Product

  MKB presented a New Year's deposit of increased profitability

  Moscow Credit Bank offers to open a deposit with a yield of 7.7% per annum. The deposit is made within the framework of a comprehensive financial program, which also involves the opening of an individual investment account and the conclusion of an agreement on trust management of securities. The amount of the deposit cannot exceed the amount placed

  06 Dec 2019

• New Product

  Zapsibkombank presented a seasonal deposit "Traditions of Growth"

  Zapsibkombank has developed a new financial product - the seasonal deposit Traditions of Growth. The offer is relevant for new depositors, as well as for existing bank customers who wish to place additional funds. The maximum rate of return within the deposit program is 7.8% per annum. Funds are placed for six months. Amount

  25 Oct 2019

• Analytics

  Depositors received almost 33 billion rubles from the DIA. for 6 months

  From January to June, the Deposit Insurance Agency paid insurance compensation to 55.8 thousand people. Such data is published on the website of the state corporation. For the first six months, the DIA paid out 32.8 billion rubles to former depositors of bankrupt banks. This money was received by half of the people who are eligible to claim the insurance payment.

  July 23, 2019

• New Product

  Surgutneftegazbank presents the "Seasonal" deposit

  Surgutneftegazbank chose the name "Seasonal" for its new seasonal deposit. The deposit can be made before the end of August of the current year. The minimum amount to be placed under the deposit program is 10 thousand rubles. The maximum yield is 8% per annum.

  July 10, 2019

• banking discussions

  RF Armed Forces: disputed deposit case

  The Supreme Court did not agree with the arguments of the manager about the absence of an agreement between Belous and Ekaterininsky. At the meeting, the plaintiff said that he had personally communicated with the president of the bank regarding the opening of deposits. In his office, he handed over the money and received cash receipts. He signed the contracts that were offered to him, and he

  03 May 2019

• Legislation

  Deputies propose to increase insurance payments to depositors

  Legislators believe that certain categories of citizens should increase the amount of insurance compensation to ten million rubles. The corresponding bill has been submitted to the lower house of parliament. We are talking about people who, for a number of reasons, have more money in their accounts than the state can guarantee to return. For example, if

  05 Apr 2019

A characteristic feature of the Russian deposit market today is that there are very few deposits with a term of more than three years. If there are such, then their profitability is noticeably lower compared to their “shorter” counterparts. And this may mean that in the long term, banks expect lower market rates.

A cursory glance at the current deposit rates shows that the highest yield for bank depositors does not exceed the level of 11% per annum (under the contract). Although, a month ago you could easily meet 11.75%. The most generous rates, even in sequestered form (in the region of 10.5-11%), are offered by not so many brave credit organizations, the number of which has noticeably decreased in recent years. And what is characteristic, banks stopped inviting new depositors for the long term at their most appetizing interest rates. Thus, the duration of eleven percent savings is limited mainly to one year, rarely two.

Another characteristic feature of today is the increased rates of banks from the TOP-10 list. Rosselkhozbank, Promsvyazbank, Gazprombank - here there are deposit offers close to 10% per annum. But Sberbank, the largest holder of borrowed money from Russians, proudly adheres to "cheap" money.

Let's pay attention to one more fact from the heading "amazing nearby". If above we were talking about the contractual rates publicly placed by banks on their Internet portals, which is called “for everyone”, then from July 1 on the same official websites you can find one very tricky indicator called the “maximum deposit interest rate”, which is also "full value of the contribution" (FVC). Credit institutions are required to publish this indicator, in accordance with the latest order of the Central Bank No. 3194-U. And what do we see? Sberbank’s maximums for June are as follows: the contractual rate is 7.5% in the “for everyone” tariff scale, the effective rate for the same product, taking into account capitalization, is 8.38%, but the mysterious maximum PSV for 3194-U is 9.557% ( over periods of 1 to 3 years). The difference is obvious. Let us clarify that, in accordance with the instructions of the Central Bank, the PSV index does not take into account capitalization, but it does take into account the conditions of already concluded contracts.

We will try to understand the features of the calculation of PSV in our next issues. In the meantime, we present an overview of long-term deposits that are rare in Russia today. By the way, it was noticed that banks began to publish more often on their websites in the column “maximum deposit term” a rather vague phrase “from ... days”. We venture to suggest that special conditions await those investors who can personally negotiate with the management of the financial institution for a longer deposit period. We want to warn those who are going to conclude a deal with their bank on individual terms - the Law recognizes only those deposit agreements that have a written public form and a deposit account number. It was on the non-compliance with these security measures that dishonest bankers played into the hands, with whom several dozens of depositors of banks that suffered fires are now suing.

Note that here we do not equate the so-called piggy bank deposits (or in other words, savings accounts, although their names may be different) to deposit ones. These do not have a fixed term, and therefore their high profitability today (for example, 11% in Promsvyazbank) can be changed at any time during the validity of the contract without notifying the owner of the capital, as well as other conditions. A distinctive feature of such a “deposit” without a deadline is that the balance account number starts with the numbers 42301 or 40817. Everything is explained simply - the mode of operation of savings accounts refers to “on demand” with special “non-urgent” rules prescribed in your contract and in the Civil Code .

Ivy Bank, deposit Stable income

Initially, amounts equal to 700,000 rubles are accepted into the account. and more. The term is fixed for 6 years and 6 months, during which the investor will receive an income of 10.6% per annum based on the results of each month.

The deposit is non-replenishable, interest is not capitalized. There are no automatic extensions. In case of early termination, the rate is reduced to the level of 1% per annum (with storage for at least 2 years).

At the beginning of this year, a purely Moscow-based bank changed its former name, Kvota-Bank, to a new one, due to a change in owners and top managers. There are two branches in the capital.

BBR Bank, Children's deposit

The deposit rate is calculated as the current refinancing rate of the Central Bank (8.25% now) plus another 2%. The total for today is 10.25% per annum, but this amount can change during the 5 years of the contract as many times as the Central Bank's refinancing indicator changes.

The minimum deposit for opening and subsequent deposits is 10,000 rubles. Special conditions - the contract is concluded in the name of the child, until the age of 14 years, the parents manage the money.

Mast-Bank, deposit Reliable Option - Pension

The following preferential conditions are provided for the bearers of a pension certificate. The term is chosen by the depositor independently in the range from 1 to 5 years. The rate of 10% does not depend on the term and amount.

The minimum first and subsequent installments are 1,000 rubles. Interest is paid monthly. There are no spending transactions. The deposit rate does not change from early termination when the contract is valid for at least 1 year.

Bank Investment Union, Pension deposit

For pensioners, the bank has an increased rate of 9.5% for each year of the deposit, the term of which is fixed independently up to the day in the range from 3 months to 5 years. Interest is calculated monthly and is not capitalised.

Receipt transactions, as well as the first installment, should not be below the level of 10,000 rubles. There are auto-renewal and early termination benefits.

Bank Agropromcredit, excellent deposit

The full term of the contract - 1830 days (almost 5 years) is divided into two periods, during which a different rate is charged (up to 10%). The yield also depends on the amount: the weighted average rate is 9.06% for deposits of 10,000-400,000 rubles, 9.27% ​​for deposits over 400,000 rubles.

Interest is capitalized once a year. During the first year, you can report 5,000 rubles. and more.

Sviaz-Bank, deposit Champion Plus — online

The term of the deposit can be chosen from two options: either 1 year or 5 years. In the first case, the annual rate is 9.2%, in the second 9.44%. The minimum investment amount is 15,000 rubles. does not affect the amount of interest that is calculated monthly. Possible capitalization or rent to choose from.

Such conditions apply to customers who opened a deposit through the bank's Internet system. Replenishment operations are limited to certain periods.

The Bank actively uses the estimates of international rating agencies. The last rating was made in June 2014 at the level of “AA-(rus) stable” according to the national scale.

Otkritie Bank, stable deposit

A rather large amount of the first installment of 5,000,000 rubles. You can choose one of five terms (1.5; 2; 3; 4; 5 years), each with its own rate in the range of 9.1-8.3% per annum, with the most expensive money being shorter. Those. for 4 and 5-year deposits, the rate is 8.3%.

It is allowed to replenish the account with amounts of more than 1,000 rubles, but there are time limits. For example, 5-year contracts do not accept additional contributions in the last year of their validity.

The financial organization is part of the financial corporation of the same name, which includes three other banks. Rating on the international scale "B + stable".

Bank Rossiya, Classic deposit

A specific rate from the range of 6.75-8.1% per annum depends on the term and amount. There are five terms to choose from: 1, 2, 3, 4, 5 years. The minimum amount is 3,000 rubles. The minimum for the highest bid is 10,000,000 rubles.

Interest can be received in one of the ways to choose from: monthly, quarterly, rent, capitalization. There are conditions for replenishing the account with any amount.

Despite the political sanctions of the West aimed at the participation of the bank in international payment systems, it remains one of the largest in the country and continues to grow its liquid asset base. Rating on the national scale "A ++ stable".

Bank VTB 24, deposit Profit-Telebank

The bank has a rather complicated scale for determining the interest rate, which depends on the term and amount. The most expensive deposits of 8.25% are for amounts over 1,000,000 rubles. on terms of 395-731 days. For terms of 3-5 years, rates of 7.1-7.5% per annum apply.

The minimum for investments is 10,000 rubles. Additional payments are not provided, however, there are no debit transactions, and early withdrawal benefits.

VTB24 is considered to be a retail structure of a financial holding managed by VTB (the second largest bank in the country). In the spring of this year, the organization was assigned the ruAAA rating on the national scale.

Oksana Lukyanets, for Vkladvbanke.ru

In all the variety of ways to use free funds, bank deposits are one of the most profitable options. Since they allow you to earn income in the form of interest paid, and at the same time do not require any serious effort from the client, more and more people choose them. The most important thing to do is to find a suitable deposit program. For example, deposits with capitalization in Moscow are one of the most profitable types of deposits. It can bring you a very good income even without the highest deposit interest rate in Moscow.

Deposit calculator with capitalization in Moscow

Despite a long contract with a lot of conditions, almost every one of us is looking for a program option that will allow you to open a deposit at a high interest rate in Moscow, and practically does not pay attention to other conditions. Meanwhile, such an important deposit parameter as the capitalization of interest on a deposit account in Moscow has a huge impact on the level of income that can be received.

A deposit with interest capitalization in Moscow differs from the classic type of deposit in the following parameters:

• in a classic deposit, interest is calculated based on the initial amount that you placed on the deposit;
• a deposit with interest capitalization in Barnaul implies the addition of accrued interest to the "body" of the deposit, and the subsequent calculation of interest based on this increased amount.

Obviously, even without taking into account the rates on deposits with capitalization, in this way you can get much more income than on deposits without capitalization. And if we consider a deposit with replenishment and capitalization in Moscow, when you yourself can further increase the “body” of the deposit, then this is an even more profitable option.

There is only one important nuance regarding the interest of this type of deposit: without a detailed calculation of the deposit with capitalization in Moscow, do not rush to immediately choose a deposit program only upon the availability of such an opportunity. Without taking into account all the important parameters and values, you can miscalculate and face uncomfortable conditions for yourself.

It is quite difficult to make such a calculation on your own and choose the best deposits with capitalization, so use the calculator for deposits with capitalization in Moscow, which you will find on this page:

1. Enter the initial conditions.
2. Click on the search button.
3. The system will select for you a complete list of suitable options with a description of the conditions for each.

After that, you will be able to quickly study all the necessary information and make an informed decision on opening a deposit in Moscow.

Where is it better to open a deposit with capitalization in Moscow?

It will not be difficult to find where the best deposit with interest capitalization is: many banks work with this type of program in 2020 (Sberbank, VTB, Russian Standard, etc.), so there is plenty to choose from.

The main criteria for a successful selection are:

• high interest rate;
• acceptable conditions for closing, partial withdrawal and replenishment of the deposit;
• bank reliability.

Deposits placed for long periods, as a rule, have a higher yield. If the client is willing to wait up to 5 or more years, the bank is willing to pay higher rates for such patience.This means that a long-term bank deposit will help not only save, but also increase savings.

Long-term deposits are the most profitable for several reasons. First, the nominal interest rate on them is initially higher than on deposits for shorter periods. Secondly, the effective interest rate (with capitalization of interest, when interest accumulates from month to month like a snowball) can be even higher. For example, for deposits for 5 years, it can exceed the nominal value by more than 3%.

In addition to higher returns, long-term deposits have another advantage. They make it possible to fix the interest rate for a sufficiently long period. And if banks start to reduce rates, this will not affect your profitability, since the rate remains unchanged high throughout the entire term of the deposit. Let's see which Russian banks offer the most attractive conditions for long-term deposits.

Maximum income - up to 11.25% per annum in rubles - provided for the deposit "Nota - Capital" in Nota-Bank. Such a rate can be obtained by placing an amount of 1 million rubles or more for a period of 3 years or more (the maximum deposit period is by agreement of the parties). By placing a smaller amount - from 30 thousand to 1 million rubles - for the same period, you will receive a yield of 11.1% per annum in rubles. The deposit can also be opened in US dollars, euros (yield - 0.6-3% per annum), Swiss francs (yield - 0.3-2.75% per annum). Interest is paid at the end of the term, to the current account or bank card account. Interest capitalization - no. Replenishment and partial withdrawal of funds are not provided. Early termination - at the demand rate. The deposit can be opened in Moscow, Yekaterinburg, Irkutsk, Krasnoyarsk, Korolev, Nizhny Novgorod, Orenburg, Rostov-on-Don, St. Petersburg, Surgut, Tyumen, Ufa.

Preservation of the rate in case of early withdrawal of funds from the deposit provided for the deposit "Without loss of interest" in the Russian Trade Bank. Interest is accrued at the rate for the actual term of funds in the deposit: 181-369 days - 5% per annum in rubles, 370-546 days - 10.52% per annum, 547-730 days - 10.53%, 731-912 days - 10.54%, 913-1095 days - 10.86%, 1096-1460 days - 10.9%, 1461-1825 days - 11.15%. That is, you decide to place funds for 5 years, then the rate (11.15%) will remain if the funds lie in the deposit from 4 to 5 years. The minimum amount to open is 50 thousand rubles. Interest payment - every month, to the current account. Interest capitalization - no. Replenishment is possible, but no later than 30 days before the end of the deposit term. Partial withdrawals are not allowed. The deposit can be opened only in Moscow.

Monthly payment of interest is also provided for the "Monthly income" deposit in Interactive Bank. This option is suitable for those who do not want to wait for the end of the deposit to receive income . Interest is paid every month, capitalization of interest - at your request. The minimum amount to open is 500 thousand rubles. The rate is 11.01% per annum in rubles for placement of funds for 5 years. Replenishment and partial withdrawal of funds are not provided. Early termination - at the demand rate. The deposit can be opened only in Moscow.

Monthly interest payments are also provided for "Term" deposits in RTS-Bank, "Stable Income" in Ivy Bank, "Universal" in Noosphere Bank, "Savings Plus" in Taatta Bank. Quarterly payment of interest - on the deposit "Nadezhny" in the bank "Kansky".

And the deposit "On your terms" in the bank "Credit-Express" suggests that the depositor himself can choose when he will receive interest - once a month, quarterly or at the end of the term. By placing funds for a period of 1 year or more (the maximum period is not limited), you get a yield of 9% (amount - from 50 thousand rubles) or 10% per annum in rubles (amount - from 50 thousand rubles). In dollars and euros - 3.75% per annum (the minimum amount is from 1 thousand dollars or euros). Interest capitalization - no. Replenishment is possible, the minimum amount is 3 thousand rubles or 200 dollars / euros. Partial withdrawals are not allowed. Early withdrawal of funds - at the demand rate. The deposit can be opened in Moscow, Mytishchi and Rostov-on-Don.

Maximum freedom of disposal of funds provides a deposit "Universal" in the bank "Noosphere". The minimum amount to open a deposit is 10,000 rubles. The rate for placement of funds for a period of 5 years or more is 10.5% per annum in rubles. Interest payment - monthly, without interest capitalization. The investor can both replenish the deposit (in order to end up with a higher yield), and withdraw part of the funds (if necessary). The minimum replenishment amount is 1,000 rubles. The minimum minimum balance for partial withdrawals is equal to the initial deposit amount. Early termination - at the demand rate. A deposit can only be opened in the Altai Republic (in Gorno-Altaisk, Ongudai, Ust-Koks).

If you do not have large sums for placement, then the Savings Plus deposit at Taatta Bank will suit you. You can open it with only 3 thousand rubles (100 dollars or euros). The term is 5 years. The rates are 10.38% per annum in rubles, 4% per annum in dollars and euros. The rate in rubles is indicated for the entire term; only two interest periods. The first 730 days - 10.2% per annum, the next days - at the refinancing rate of the Central Bank of the Russian Federation +2.25% per annum. Interest payment - monthly, interest capitalization - yes. Replenishment and partial withdrawal of funds are not provided. Early termination - on preferential terms. On the deposit, you can get an increased rate by placing a large amount: 5-10 million rubles (or the equivalent in foreign currency) - by 0.3% per annum, 10-15 million rubles - by 0.6%, more than 15 million rubles - by 1 % per annum in rubles. A deposit can be opened in Achinsk, Kansk, Krasnoyarsk, Moscow, Nizhny Ingash, Rostov-on-Don, Simferopol, Sevastopol, Uzhur, Uyar, Ytyk-Kyuel, Yakutsk.

Open online (via Internet banking) you can deposit "Strategist online" in the bank "Saint Petersburg". The rate for placement for a period of 3 years or more (the maximum period is not limited) 9.5 (amount - from 10 thousand rubles) and 9.6% (from 1.5 million rubles) per annum in rubles, 3.9 (amount - from 500 dollars) and 4% (from 50 thousand dollars) per annum in dollars, 3.4 (the amount - from 500 euros) and 3.5% (from 50 thousand euros) per annum in euros. At the request of the depositor, a bank card of VISA / MasterCard payment systems is issued without charging a commission for servicing the main card, or for 50% of the cost of annual card servicing (depending on the amount of the deposit). Interest payment - at the end of the term. Capitalization is not. Replenishment is possible, the minimum amount is 5 thousand rubles, 300 dollars / euro. If an additional deposit is credited to the deposit account 30 days or less before the deposit expiration date, then interest is accrued on its amount at the current demand deposit rate. Partial withdrawals are not allowed. Early termination - at the demand rate.

Table 1. "Top 12 most profitable long-term deposits"

Data for September 2014

Long-term deposits in banks are essentially strategic savings and are opened in a bank for a year or more. Along with increased interest, which guarantee passive income, they also carry increased risks.

The concept of a long-term deposit stands for a deposit in a bank for a period of more than a year. It is possible to withdraw the deposit only after the expiration of the term. There are cases when long-term deposits in banks were kept for more than ten years.

What is the difference between deposit and deposit? The difference between a deposit and a deposit lies in the fact that it is deposited. A deposit is money that a client transferred to a bank for the purpose of keeping and making a profit. But a deposit is a kind of storage of valuables, but not necessarily money. The deposit can be securities, shares, precious metals, etc.

It happens. A person makes a contribution for a long time for a child. As an example: a contribution in favor of a third party. When the child turns eighteen, he will be able to use the savings. All the time the deposit exists, interest, additional contributions, etc. are accrued to it. Such a contribution, as a rule, is replenished.

What are the deposits? Deposits fall into three main categories: demand deposits, term deposits and conditional deposits.

If you live in Ukraine and make a long-term deposit, it is better to open a deposit in hryvnia. This currency is stable, and the dollar or the euro is constantly “falling” or “rising”. Also, on hryvnia deposits, quite decent interest. Some Ukrainian banks offered up to 27% per annum. In recent years, interest rates have been declining due to the soft monetary policy of the NBU.

Long-term investments have disadvantages...

It is dangerous to trust money to a bank for a long time. A few years ago, in Ukraine, several banks “left”. The bankers have not yet paid the depositors the money and have not returned the savings. According to experts' advice, you should not make deposits in banks that are not members of the Deposit Guarantee Fund for individuals. Also, you do not need to invest more than the sum, the return of which is guaranteed by the state.

For a bank depositor, the Fund guarantees the amount of money for his deposit and the amount of money in the amount of the deposit, including the amount of money, remunerated on the day when the decision of the National Bank of Ukraine on the amount of the deposit to the bank is accepted iv, but no more than 200 thousand hryvnias. .www.fg.gov.ua/depositors/guarantee/

If something happened to you and you urgently need money, you can close the deposit account without waiting for the expiration date. Of course, you will have to make a payment for material costs. Usually this is a write-off of interest charges or their reduction.

Also, the bank may impose a penalty for non-compliance with the contract. Before you sign the papers for the agreement to open the deposit, read it carefully. The bank may demand a payment for closing a deposit that has not yet expired. As you can see, it is not profitable to close the deposit before the expiration date. Bank employees will never agree to your terms, because they also protect the rights of the bank.

Profitable long-term deposits with replenishment: main tasks and interest rates

The main task of long-term deposits with replenishment is to accumulate and increase. Such deposits are chosen by people in order to raise a significant amount for an expensive purchase. For example: to buy a house, a car, to pay for education, start a business or go on vacation.

What is a bank deposit? A deposit (bank deposit) is an amount of money placed by a depositor in a bank for a definite or indefinite period. The placed funds are used by the bank as working capital, which are used to make a profit.

Today, interest rates for placements in foreign currencies are lower. Also, financial experts strongly recommend placing funds in different currencies, diversifying monetary assets.

What is investment diversification? Diversification of investments - (from lat di versus different + facere do; English diversification of investments) distribution of the investor's capital by investing in different types of securities. In our version: for different currency deposits.

A person who wants to manage funds wisely will be guided by personal desires and needs. If a long-term deposit is chosen for a period of 1 year or more, then a person’s needs are reduced to the following points:

• - The desire to receive passive income, expressed in the monthly receipt of dividends in the form of an interest rate
• - Accumulation of funds to make large and expensive purchases. People save up to buy dachas, apartments, cars, household appliances, and so on.
• - The ability to protect funds from the harmful effects of inflation

These are the main tasks that are solved when placing funds on long-term deposits not only of Russian banks. With the help of the financial instrument in question, profit is fixed and insured against an unplanned reduction in interest rates.

It is recommended to choose those programs for which the bank offers a fixed or growing interest rate. Variations that link to volatility, especially floating rate offerings, are best left to experienced and knowledgeable investors.

It is worth noting that the client, having placed funds in a large volume and for a long time, often receives privileges and preferential terms for other types of banking services from a financial institution. Accordingly, the profitability of such an investment will be higher. Use insurance for guarantees. A good example is the issuance of a loan at a minimum interest rate, the possibility of lending secured by a deposit, minimizing commissions and other incentives.

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Detailed information: traditional forms of investment and risk insurance. Advice from market experts in detail from materials Business articles portal site review ★★★★★

What interest on deposits can be expected in case of long-term placement of funds on deposit?

Rates for long-term programs will be higher than for short-term ones. So, the average interest on offers from 1.5 years and above will be higher than on deposits for up to 1 year. Today, the average rate on a long-term profitable deposit for a period of 3 years can reach 14-15% per annum. If we take in comparison similar programs for 3, 6 and 12 months, then here you can count on the maximum percentage of 10-11% per annum. Check the relevance of interest rates, as they change constantly. It depends on many economic factors of this or that state. For example: in Russia, deposits can become cheaper, at the same time, in Ukraine, Belarus, they can rise in price, and remain stable in Kazakhstan and Moldova.

What is the interest rate on a deposit? Interest rates on deposits - interest paid by banks to customers for the use of money placed in a deposit account. A bank is an organization whose income consists of the difference between the price of attracting and placing financial resources.

If a person chooses a cumulative long-term deposit with replenishment, then in this case the rate will coincide with deposits opened for up to 1 year. The more opportunities the program gives the client, the lower the return on investment will be.

What is the real interest rate? The real interest rate is the nominal interest rate minus the expected rate of inflation. For example, the nominal interest rate is 10% per annum and the projected inflation rate is 8% per annum. Then the real interest rate will be: 10 - 8 = 2%.

When choosing long-term deposits, you have to pay attention to the type of currency. Today, interest rates for placements in foreign currency are lower than in Russian rubles and hryvnias.

Also, financiers recommend placing funds in different currencies, since when the exchange rate of one falls, the exchange rate of the other automatically increases. Thus, this method is used to protect against inflation and generate a stable income on the deposit. Investors use this method when working with long-term investments in the Russian, Ukrainian and foreign financial markets. An example for our region is as follows: 30% in US dollars, 20% in euros and 50% in national currency.

Long-term investment: serious risk or high return?

How to choose a long-term deposit, and this is not only an increased return, but also an increased risk. The Client may terminate the bank deposit agreement ahead of schedule. In this case, many financial institutions recalculate the interest rate at the “on demand” rate. The savings will be returned, but the income will be minimal. Given inflation, you can lose on this.

Not everyone knows how to handle money carefully. If a large and expensive purchase is planned in the coming years, then learn how to correctly use the financial instruments that are available today. One of these solutions is long-term deposits offered by domestic banks.

Advantages of long-term deposits

Remember that investing money for a long time on the terms of a long-term deposit is always a risk. However, long-term investments have inherent advantages that need to be taken into account. What are the benefits?

• - Unlike most programs, higher interest rates are charged on such deposits. At a minimum, such deposits offer 0.5-1% more than traditional ones.
• - According to experts working in the financial market, up to 90% of banks allow replenishing a long-term deposit opened for a long time. This is a good factor for people who seek to accumulate a significant amount in their account.
• - Profit will increase if the client has chosen a deposit, which provides for the transfer of interest with capitalization, as a rule, on a monthly basis.
• - A client, when opening a long-term deposit, can count on a reduction in expenses for other banking services. It is worth remembering that many banks have loyalty programs for customers. Special conditions are expected when placing funds on deposits: discounts on the rates of certain types of banking services, discounts on opening accounts, preferential car loans, minimizing interest rates on loans, mortgages, microloans, etc.

What is the capitalization of interest on a deposit? In other words, the calculation of interest on interest. Thus, the capitalization of interest increases the effective rate on the deposit and the total amount of income received. The most common is monthly capitalization of interest, when accrued interest is added to the principal amount of deposits once a month.

There are always pitfalls

Choosing a long-term deposit is no exception. One example is the lack of capitalization and the ability to replenish savings. However, this is not the worst. The client signing the agreement needs to be sure that the interest rate will be at the same level during the entire validity period. Often, banks go to tricks and tie deposits to a hidden indicator. Thus, during the term of the history of the deposit, the interest rate may decrease.

How to choose a reliable long-term deposit, so as not to “burn out”?

• 1. Choose a reliable bank with a good reputation
• 2. Independently study the conditions of the programs. Pay special attention to footnotes and text written in small print. As a rule, additional fees and restrictions are hidden here.
• 3. If your own knowledge is not enough, then involve an experienced specialist who will study the documentation himself and help determine the program with the most favorable conditions for investing capital

Finally, it must be remembered that the client can terminate the bank deposit agreement ahead of schedule. In this case, financial institutions recalculate the interest rate at the demand rate. This factor should also be taken into account when choosing a deposit for several years.