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Thursday, December 8, 2016

Deposits of troubles of the day: how to choose the right contribution


Almost every week, the Central Bank revokes the license of any Bank. “EV” decided to find out whether it is now profitable and without any risk to open a Deposit at a good rate?


photo: Mikhail Kovalev

The specificity of Oct

To start is to determine why the Deposit: to preserve capital or with the hope to make a profit? Outset that winning the jackpot in the current economic situation, when prices are rising and jumping rate, is possible only with very favorable developments. The maximum rate at banks experiencing liquidity shortage, is 10-10,5%, standing firmly on his feet to the depositor banks are offering 8-9%. In addition, many banks are offering high rates on deposits, negotiated a payoff for him only at the end of the term of the contract with the client.

Expect an increase in rates on deposits is hardly necessary. “Given the plans of the Bank of Russia on decrease in the key rate, we can expect further correction in rates on deposits. In our view, the decline may not occur until January of the following year. This is due to the fact that in anticipation of the end of the year, banks traditionally administered in their line of seasonal Deposit with an increased interest rate. Typically, these offers are valid until the end of the year,” — said Yevgeniy Safonov, Director of the Department of development of private banking business Absolut Bank.

Agree with him the first Deputy of Board of Bank “Russian standard” Evgenie Lapin: “given the market trends and the overall dynamics of the decline we do not exclude further reduction of interest on deposits in the short and medium term. Now is a good time to open deposits. First, banks still have the best deals. For example, many banks currently offer higher rates when making deposits in online banking. Secondly, some banks have introduced seasonal deposits”.

Important conditions

When you select a contribution rate in addition to pay attention to the section “Special conditions of Deposit”, although not all banks include it in the contract. To begin to learn more about the possibility of a partial or full withdrawal. Unfortunately, in our time, it is likely a situation where the investor cannot or does not want to wait until the end of the Deposit term. The banks ‘ policy in this matter aggressively. In case of partial withdrawal, most banks do not allow to use more than 30% of the initial Deposit amount. Negotiated more and withdrawal periods from 30 to 180 days from the date of the Deposit. In case of early withdrawal all funds from the account (early termination agreement) transferred to the Deposit rate “on demand”, and this is only 0.01%.

Many banks now provide investors with a service Deposit. That is an increase in the amount of the Deposit on which the interest is accrued. At first glance, it seems like beneficial to those who are not able to put a large amount into the account. But there are pitfalls. Namely, restrictions on the amount and timing. The first is not particularly scary, because it sets the minimum amount of funds. As a rule, he ranges from 1000 to 5000 rubles. the latter is more serious. Regulates the time period in which the account is allowed to refill. Usually it is limited only by the month (at least three) from the time of conclusion of the contract with the Bank, after which the replenishment becomes impossible. However, there are exceptions, some banks limit no.

You also need to ask about the capitalization of the Deposit — accrued interest for a certain period is added to the original body of the contribution and the next payment is calculated from the resulting amount. The percentage remains the same, but the amount of contribution increases and, consequently, increases the income of the depositor. Now the maximum rates on such deposits of about 9-9,7%. Of course, if the amount is 10 thousand rubles., capitalization not particularly affect the end result. But the more you Deposit, the more will increase the income.

Features choice

Of course, one cannot avoid the issue of possible risks. The Deposit insurance system provides a guaranteed refund in case of termination of Bank activity. And this is the main plus the usual deposits. “The availability of insurance coverage ASV makes a Deposit most secure savings instrument for the population. Let me remind you that the maximum amount of compensation for deposits is 1.4 million rubles. Unlike deposits and other savings instruments such as mutual Funds, Unallocated metal accounts, securities, etc., do not fall under the insurance system are not only more profitable but also more risky. Another advantage of deposits — guarantee of profitability for this instrument, which does not depend on market fluctuations,” — said Eugene Safonov.

However, the market began to appear alternatives to conventional deposits. For example, investment life insurance (coli). Similar programs in recent years are increasingly in demand. Evgeny Lapin explained the principle of their action: “the Money is not just accumulate on the customer’s account. They are placed in highly reliable securities. All profits from such investments along with insurance premium at the end of the term of the agreement coli is transferred to the account of the client. It is a comprehensive approach to creating savings with simultaneous protection of the insurance. That is the provision of a structural product with a 100% guarantee of return of capital”. According to the Banks.ru in the first half of 2016 the rate of growth of investment life insurance products amounted to 147,5%. Of the minuses coli it should be noted that the minimum contract term for these programs is 3-5 years.

According to experts, at the moment, deposits are still the most popular and reliable mode of investing. Just the time has passed when one could only choose the highest interest rate and put money into the account. Now we need to understand all of the nuances of the contract, to soberly assess their capabilities and to estimate the probability of the most pessimistic scenarios.

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