Deposit and savings certificates. Types and contents of certificates.

Banks in the process of carrying out their activities, in addition to deposits and plastic cards, have financial instruments unknown to the general public. A bank certificate refers to such an instrument.

So, the certificate of the credit institution plays the role of a paper that says that the finances are placed in the bank and it is this paper that certifies the right of its owner. The owner's identity card is necessary to ensure that the holder of the security receives the amount of its face value and accrued interest. Thus, the certificate is detected by a document that certifies the circumstance of making a contribution to the credit institution, as well as the authority of the holder of the certificate to receive the deposit amount in conjunction with the interest.

The bank certificate has two types. These are deposit and savings certificates. A certificate of deposit assignment is a security that is intended for organizations and companies. It is issued for a period of up to one year. The difference between such concepts as deposit and savings certificates is that the certificate of deposit is intended for individuals. The release date is also a distinguishing feature. The release date is up to three years. At the same time, deposit and savings certificates have undoubted similarities in the field of their grounds of issue and terms of placement. In order to issue the type of security in question, you need to obtain permission from the Central Bank of Russia. Papers are issued for a certain amount, but you need to understand that they can not be a means of payment or payment for work or service. The interest that is accrued on these types of securities is called a coupon. There are two types of certificates. Certificates of deposit are transferred to other persons by means of a cession, and a certificate of a bearer security is handed over to a simple character.

Deposit and savings certificates are also characterized by the fact that the powers can pass from one owner to another. If it is a document of a nominal type, the transfer of powers must be made on the side of a negotiable security, in addition, a bilateral agreement between the holder of the former type and the current owner of the paper. In the event that the transfer of rights is documented by bearer paper, then there are no problems.

In order to receive finance in accordance with the certificate, you must come to the branch or branch of the issuing bank. The bank has an obligation to the bearer of the document to pay the entire amount of the certificate, plus the interest that is specified therein. It should be added that the interest rate can not be changed in a period equal to the circulation of the certificate. In addition, it is fitting to designate one more circumstance related to the security under the name "certificate". When it is issued, the holder retains the right to present the certificate to the bank early for payment. In this case, the amount that has been paid will be considered by the credit institution by analogy with the terms of the demand deposit, thus, the interest on the certificate that could have been significantly lost if not for an early payment. The savings certificate by the general rule has an urgent form and is issued for a period of three months, half a year, also has a ruble currency.

Despite the fact that the bank certificate is a rather young phenomenon on the securities market in the Russian Federation, nevertheless, it gained mass popularity. It's all about the comfort that is given to paper owners. It consists in the fact that the certificate combines the properties of the deposit of a bank and a security. Of course, certain moments occur when there are differences in these financial instruments. Buying the certificate discussed above, each individual should understand that he is the owner of the security, he has the value and can be applied at the discretion of its holder. The interest rate on the certificate is fixed, the payment is made at the time of the payment of the document. The certificate is subject to the influence of civil relations and norms of contract law, that is, agreements of inheritance, barter or gift, as well as collateral.