What is a deposit account in a bank and what kind of deposit is it?

Banking services are used by almost all legal entities, as well as many ordinary people. Sooner or later they have a question: "What is a deposit account in a bank?" The answer to it is simple enough: it is a current account in the bank where the client keeps his money, and the bank, in turn, pays for it in the form Interest on the amount of the deposit. A deposit account is sometimes called a deposit or a deposit.

In other words, it can be summarized that a deposit account in a bank is a way to save and increase your money, using the services of financial institutions.

History of appearance

Greece is considered the channel in which the first principles of deposit accounts began to emerge . At a time when there were no modern financial institutions and awareness of what a deposit account in a bank, people kept their wealth in the temples. They put their goods in pots, wrote their name and date. At the same time, the church took upon itself the obligation to preserve values, but at the same time took a reward for such a service. This was more reminiscent of today's service for saving values in individual depository cells, which banks provide.

At a time when more and more people kept their savings in gold coins, there are so-called "money changers". They kept money for a certain reward. Then they realized that the gold coins that they kept, you can give other people in the form of a loan and earn on it. At that moment, the first principles and understanding of what a deposit account was in the bank was born.

When the depositors found out that the money-changers make money on their money, they wanted to have some dividends from it. Since that moment, the principle of calculating interest for placing a deposit has appeared.

There are several types of deposits. In this article, the most popular ones are considered.

What are the types of deposits by the term of the credit?

This criterion distinguishes:

1. Demand deposits.

This is a kind of deposits, in the conditions of which it is stipulated that the deposit agreement has no validity period, that is, they are unlimited.

2. Term deposits.

Such deposits have a certain period of time. Often contracts are concluded for 3, 6, 9, 12 and 24 months, but other options are possible. Such deposits can be returned early, if such is provided for in the contract.

What are the ways of withdrawing deposit funds?

By the method of withdrawing deposit funds, you can divide the deposits into the following types:

1. At the end of the period in full.

Such deposits can not be withdrawn prematurely, unless the client breaks the contract with the bank. But in such a case there will be a fine in the amount of interest that the bank will withdraw from the client for violation of the terms of storage of funds that were specified in the contract.

2. Partial withdrawal is possible.

Deposit accounts with such an opportunity entitle the client to partially withdraw funds from the account, as necessary. In this case, no penalty charges to him from the bank will not be applied.

Deposit funds can be withdrawn both through the cashier of the bank, and by cashless transfer to a card or current account. For this, the bank may withdraw an additional commission.

How are interest accrued on deposits?

Deposits by way of accrual and interest payments are divided into:

1. Deposits with interest payments at the end of the term.

This implies that the interest that the bank charges on the deposit amount is given to the client during the payment of the deposit body at the end of the term.

2. Deposits with capitalization.

Such deposits are considered more profitable than the previous ones. The terms mean that the monthly interest that is accrued to the customer on his deposit, the bank adds to the body of the deposit, that is, from the next month, interest will already be charged on a large amount.

To better understand what a deposit account in a bank is, you need to divide the deposits according to the terms of the extension of the terms of storage (or deposit agreement):

1. Without extension.

These deposit agreements are not renewed after they have ended. Deposit funds will be stored in a bank account without accrual of interest until the client takes them.

2. With prolongation.

To date, the extension of deposit agreements is a popular and popular service. After the expiration of the deposit period, the deposit is automatically re-arranged for the same period for which the contract was concluded, but already at the new deposit rate. Very often, banks have loyalty programs, which for prolongation increase the standard interest rate from 0.5 to 1%, which is more beneficial for customers.

By the method of replenishment, deposit accounts are:

1. With the possibility of replenishment.

Such deposits can be replenished at any time, which is very convenient in the presence of additional funds that the client of the bank also wants to put on such an account.

2. Without the possibility of replenishment.

This type of deposits can not be replenished, which is prescribed in the contract for opening a savings account.

What are the most popular deposits?

Following the example of Russian banks, we can conclude that the most popular is the classic deposit account. "Alfa-Bank" for such a deposit charges the highest percentage, compared to other types of deposits. Classical are those that are placed for a certain period without the possibility of a partial withdrawal.

In order to open a deposit account in a bank, usually a person needs to bring with him a passport and a taxpayer identification number.