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What is a deposit in simple words? What is a bank deposit: analysis with examples

A deposit is money transferred for safekeeping to a bank; the terms and conditions are specified in the agreement. There are time and demand deposits. For the use of the depositor's money, the bank pays a monetary reward in the form of interest.

The concept of “deposit” refers to money that you transfer to the bank for safekeeping. They are subject to return within the period and under the conditions specified in the contract. Deposits can be divided into two categories, depending on the term - time deposits and demand deposits.

A demand deposit means that you can withdraw your money from the bank at any time - transfer it to the account of another person, enterprise, or cash it through a bank cash desk or ATM. The funds in your account belong to this category.

Time deposits, in turn, can be divided into several categories - long-term, medium-term, and short-term. A long-term deposit implies a period of placement of funds that exceeds 9 months.

Medium-term – from 3 to 9 months, short-term – from 1 to 3 months. If you deposited money in the bank under the terms of a time deposit, you can withdraw it no earlier than the period specified in the agreement.

What is the point of transferring your money to strangers for safekeeping? Let's skip all the disadvantages of storing cash in the mattress, under the pillow, and stockings, and get straight to the point. For the fact that depositors trust the bank to use their funds (which it quickly distributes in the form of loans), the bank pays depositors monetary compensation in the form of interest.

That is, the money in the account brings income to its owner. There are quite a few types of interest accrual - at the end of the deposit term, throughout, with and without capitalization. Let's take a closer look at them. The interest that the bank charges at the end of the deposit period is simply added to the deposit amount before the client withdraws it from the bank. For example, if you placed $500 for a year at 10% per annum, then after a year you will have $550 in your account.

In the same way, interest is calculated on the money you have in your checking account. At a certain time, the bank system checks the amount of funds in your account and charges interest on them. Interest is calculated based on the interest rate that is currently in effect (which, by the way, is several orders of magnitude lower than the rate on time deposits).

The amount of interest that has been accrued appears on the account once a month. Interest can also be accrued once a quarter, half a year, year, etc. The deposit amount remains unchanged, but you receive a stable income. The above example refers to the method of calculating interest without capitalization.

The difference at first glance is insignificant, but if the deposit amount is serious, then the capitalization of interest will turn out to be a significant increase in the interest rate. There are also deposits that can be replenished throughout their validity period. In this case, the amount of interest increases in proportion to the “added” amount.

What is not recommended to do with a deposit is to withdraw it from the bank before the due date. In this case, as a rule, the income from it will be scanty and equal to the income from a regular current account. For this reason, before you carve out any amount from your budget for a deposit, make sure that you will not need it in the near future.

And finally, one more important point. The maximum rate in ruble equivalent must exceed a value called the “refinancing rate”, established by the Central Bank. You can always find out the size of the refinancing rate by visiting the Central Bank website.

People use different investment methods to increase their savings. Bank deposits are one of the simplest and most affordable options to make a profit. How to choose the right deposit product and not make mistakes, what documents need to be prepared and when the bank is obliged to transfer interest - all this is worth studying in detail.

What is a bank deposit

If we talk about the definition of what a deposit is, then it is finance transferred to a credit institution (state or commercial) for a set period in order to generate income. To do this, a deposit account is opened where funds are stored, and accrued interest is transferred there.

Being a saving tool, the deposit helps to make a profit. According to the agreement, the depositor gives the bank money for a specified period. Financial institutions are also interested in attracting funds from legal entities and ordinary citizens, since they subsequently conduct financial transactions with the funds raised, directing borrowings to issue loans at a higher interest rate. The difference between interest paid and interest received is the bank's profit. This is how banks, being a kind of intermediary between borrowers and investors, earn money.

What is the difference between a deposit and a deposit?

Some people believe that a deposit and a deposit are no different from each other. This statement can be considered true, since some banking institutions do not share this concept. Still, you need to know how a deposit differs from a deposit in a bank. Deposit is money transferred to the bank for safekeeping and the purpose of which is profit. A deposit is money and other assets (securities, precious metals, stocks, bonds, etc.). This is what the word deposit means and how it differs from a deposit.

Types of bank deposits

There are several special criteria by which deposits can be divided. Below are the main gradations that are found in the field:

Deposit on demand

This type of deposit offer will be optimal if there is a need to place money for safety, and not to extract income, since funds can be stored on it for an unlimited amount of time, they can be bequeathed and recalled at the first need. Demand deposits are a perpetual bank account that automatically rolls over. It has no restrictions on the balance and contribution amounts.

The only disadvantage of such an offer is the accrual of a minimum profit, the value of which does not exceed 1.5%. People opening such deposits do not aim to receive additional funds, but present money to the financial institution for safekeeping. Such accounts can be opened to service credit programs and in this way interest is accrued on bank card account balances.

Time bank deposits

If the goal is to make a profit, it is worth understanding what a time deposit is. The main difference is that it is opened for a specified period, and during this time the investor does not have the right to withdraw invested money from the current account. If he does this, then interest on deposit products is accrued at the “on demand” rate. True, in our time, some banking institutions attract customers with increased interest rates in case of early withdrawal of funds.

The maturity of the deposit account affects interest rates - the longer the deposit, the higher the rates. Interest can be withdrawn monthly or capitalized in the account. Upon expiration, a short-term deposit can be transferred to the minimum rate or automatically extended for a new period - this is stated in the agreement. As for depositing funds, this is also stipulated in the contractual obligations.

It is worth noting a new product - investment deposit. It cannot be called a deposit in the full sense of the word, since it is a combination of a fixed deposit and investments in mutual funds owned by a banking institution. The product is a risky form of investment as the client may make large profits or suffer losses. Another type of investment instrument is subordinated deposit products, the term of which cannot be less than 5 years. The cost of servicing subordinated deposits is higher than classic offers.

Terms of deposits

Fighting for each client, financial institutions offer different conditions to attract money for deposit. All of them are prescribed in the contract and among them the main points can be distinguished:

• interest rate on the current deposit;
• minimum and maximum amount;
• timing and procedure for payment or capitalization of interest;
• possibility of additional replenishment of the current account;
• conditions for early closure or extension.

Deposit currency

At the present stage, most financial institutions offer to open a deposit account in the monetary units of different countries. Interest rates depend on the currency of the deposit. As a rule, foreign currency products are cheaper than ruble ones, but it is believed that this way you can insure money against inflation and currency fluctuations. You can deposit funds into a deposit account in one currency or in several at the same time (multi-currency deposit).

Interest rate on deposits

Rates can fluctuate over a wide range. You should not chase too profitable offers, since they are risky, and the insurance paid in the event of bank bankruptcy will only cover an amount not exceeding 1,400,000 rubles. According to the regulations of the Central Bank of the Russian Federation, interest on placed funds is accrued daily. They can be added to the deposit itself, participating in further capitalization, or paid separately over a certain period of time. When choosing a demand deposit, the deposit interest rate is set at a minimum level.

How interest is calculated on deposits

Depending on the type of deposit and the goals pursued, the accrual of interest on the deposit varies. It may occur with or without capitalization and be paid or added to fixed assets:

• in a certain period of time (decade, month, quarter, etc.);
• at the end of the placement period.

Deposit term

All deposit offers can be divided into open-ended and fixed-term. In the first option, the deposit period is not established (demand deposits). Time deposits imply the conclusion of an agreement for a certain period of time. It can be set in any time frame: days, months, years. Such contributions can be divided into:

• short-term (up to 12 months);
• medium-term (12-36 months);
• long-term (from 36 months).

It is worth noting that the consumer can withdraw the money he needs at any time, but then he loses interest. Some banks offer clients to personally determine the period for which they are comfortable placing funds. This is the so-called individual deposit period. It is good because the consumer himself chooses the time when he needs money and makes a profit from it.

Is it possible to replenish the deposit?

There are deposits with and without the possibility of replenishment. Among those replenished is the already well-known “demand deposit”. Contributions are allowed regardless of time. Regarding time deposits, they are divided into:

• savings. Created to save money and do not involve additional contributions.
• cumulative. Designed to be able to raise money for a big purchase. They can be topped up with any amount (some banks may set limits), and interest is charged on the total amount. As a rule, such proposals are implemented within the framework of comprehensive programs (for example, saving up for the construction of an apartment, etc.), however, such deposits have a lower interest rate compared to savings deposits, since the bank cannot know what amount will ultimately be in the account and therefore does not takes risks by charging a high interest rate.

Banks offer replenishable deposits with the possibility of partial withdrawal, but in such products the size of the minimum balance is clearly specified in the contract. The client can repeatedly withdraw part of the funds and replenish the account back, but the base amount must be constant. The interest rates of such offers are lower, but they do not in any way affect the ability to withdraw or top up your account.

Which deposit to choose

Many people wonder how to choose a bank deposit so as not to make a mistake. In this case, it all depends on what goal to pursue. If you just need to save your accumulated savings, then you need to choose a product “on demand”. If you want to increase the funds collected, then you should read it through savings deposits. Those wishing to accumulate a certain amount should choose savings deposit products.

You should not chase big income, as this is associated with risks, but focus on the liquidity of the deposit. It is better to give preference to banks with a reputation and experience in the market (Sberbank, VTB, etc.). An important factor will be the availability of information on deposits and the compliance of the interest rate with the refinancing rate of the Central Bank of the Russian Federation.

How to open a deposit

It is worth noting that opening deposits does not take much time. To do this you need:

• decide on a deposit product;
• visit a bank branch (some institutions offer to carry out the procedure online or through an information kiosk);
• provide the required package of documents and fill out an application;
• sign the contract.

Application for opening a deposit account

Before placing funds on a deposit account, the client is asked to fill out an application to open a deposit. Each bank has the right to independently develop the form of this document, but in general it contains the minimum necessary information about the client. The application is signed by the depositor on the one hand, and an authorized person of the bank on the other and certified by a seal.

Documents for opening a deposit

A financial institution may have different requirements for depositors. Individuals only need to present a passport or other identification document (military ID, residence permit, pension card, etc.). Legal entities and individual entrepreneurs present other documents to open a deposit account, the list of which should be clarified with the financial institution.

Agreement for opening a deposit account

When placing money for the purpose of making a profit, the client enters into an agreement with a banking institution to open a deposit, which specifies:

• subject of the contract;
• responsibilities of the financial institution;
• rights and obligations of the depositor;
• how controversial issues will be resolved;
• possibility of early termination.

The agreement defines the relationship between the parties. There may be options for lowering/increasing the interest rate, making additional contributions, the procedure for paying profits, etc. If the agreement is concluded in favor of a third party (relative, friend, organization, etc.), then the details of the beneficiary of the deposit must be written down in the document. It is worthwhile to provide for all the nuances and indicate them in the contract, since it will be the main document if you have to deal with it in court if controversial situations arise.

How to close a bank deposit

After the time for placing funds has expired, the deposit must be closed. To do this, the client must come to the branch with an agreement and an identification document on the day the deposit is closed or the next. If the contract specifies automatic extension and the depositor is satisfied with this, then there is no need to visit the banking institution. Otherwise, if the client does not show up for the money, the bank transfers this deposit to the “on demand” category.

Early closure of the deposit

Each client has the right to close the deposit early. He will receive the entire amount of funds placed and profits, according to the agreement. To do this, you need to come to the bank in person, bringing with you an agreement and an identity document. You will need to write an application for early withdrawal of money, after which the banking institution is obliged to return the funds in full plus the due profit for the time the money was placed in the account.

Video: Bank deposit

Deposit (bank deposit)- this is the amount of money placed by a depositor in a bank for a certain or indefinite period. The bank uses the placed funds as working capital, which is used to make a profit. Regardless of the result, for the use of these funds, the bank pays the depositor a bonus in the form of interest.

During a crisis, this is the most reliable way to invest personal funds. All banks that accept money from the public for deposits are required to be participants in the state government, which guarantees depositors of such banks payment of compensation for deposits of up to 1.4 million rubles if any problems arise in this bank (bankruptcy or revocation of a license).

The shortage of liquid funds became the root cause of the crisis. Banks are taking serious measures to attract funds from outside. One of the measures is to increase interest rates across the entire line of deposits. Banks are beginning to actively advertise their deposits, attracting funds from ordinary people to the bank.

Since during a crisis they have nowhere else to get money. By placing funds in a bank, you are guaranteed to receive your income. in the form of the interest rate promised by the bank.

Today you can easily find a bank deposit at 15-20% per annum in rubles, which seemed unrealistic just a year ago. These are pretty big numbers. And given the inflation rates, we can safely say that you will not only save your money, but also increase it.

A crisis is a time for profitable investments and purchases, including in the bank deposit market . Today you can both earn and lose on deposits. The result depends on the contribution parameters and your goal.

To make these words more clear, let's look at the table below:

• at an interest rate of 14% per year

In this example, we considered a bank deposit with an interest rate of 14% per annum, with monthly capitalization and the possibility of additional monthly contributions.

14% is the rate that existed before the crisis. In the spring of 2009, when the shortage of liquid funds in banks was especially sensitive, there were offers on the deposit market that were much more interesting than 14 percent per annum.

For example, I invested 250,000 rubles at 20% per annum for 200 days in one of the banks. Deposits in this bank are insured, so I have peace of mind about my money. After 200 days, the amount of interest accrued for the entire deposit period will be 27,397.26 rubles. Of which 958.90 rubles is tax. I will receive 26,439.36 rubles net.

Each bank has a fairly extensive range of deposits in its arsenal. As they say, for every taste and color. Although, often, this fact plays a disservice to banks.

This is explained simply. Most people in our country are financially illiterate. They already do not understand banking instruments, but here they are also offered a wide choice.

However, a wide choice is not only a problem for banking structures. How many customers leave the store empty-handed just because they were offered too wide a choice!

For example, in the bank where I worked before, there were about 8 types of deposits, of which there were only two or three working ones. A similar number of deposits is more necessary to make sales.

This technique is borrowed from retail, where 20% of products generate 80% of revenue. Or to put it another way, 80% of the products are necessary for the main 20% to sell well. Therefore, if you decide to study the deposits of any bank, keep this in mind.

But let’s return to a detailed consideration of bank deposits. If we approach this issue from an anatomical point of view, then all contributions have a skeleton.

The skeleton is the very essence of the deposit. Namely, the opportunity to preserve and increase your funds with the help of a bank. But each contribution has different properties. Depending on these properties, financial results differ. Properties are determined by customer needs. The properties of deposits are:

• Interest rate
• Capitalization of interest (order and cyclicality)
• Deposit term
• Deposit currency

Interest rate

The higher the interest rate, the better. The final amount of money you earn depends on its size. However, this is not a key indicator of the profitability of the deposit.

Possibility of replenishing the deposit during the term

For me personally, this is an important indicator, since I try to save 10-20% of my income every month. And if the deposit allows you to make replenishments, then I try to take advantage of it, since interest is accrued on the deposit amount. At the same time, some banks do not allow you to replenish your deposits, especially for deposits with a high interest rate.

Interest capitalization

This is one of the key indicators by which you should choose a bank deposit.

Capitalization– this is when the interest earned is added to your initially invested amount of money.

The more often capitalization occurs, the higher the final deposit amount will be, since interest is calculated on the total amount.

There are the following types of capitalization: monthly, quarterly and capitalization at the end of the term. Although there are quite unique capitalization conditions.

For example, one of my deposits capitalizes twice a month. In the middle and at the end.

In the pictures you can examine in detail the principle of capitalization. For example, I took 100,000 rubles, at 14% per annum, for a period of one year.

There are also different procedures for calculating interest. They can be added to the deposit, or credited to a separate account, from which you can then withdraw them.

Deposit insurance

Here it is important to know whether the bank is included in the compulsory deposit insurance system or not, since.

Deposit term

This is a rather “tricky” parameter. Let's say you made a deposit for a period of three years at 15 percent per annum. The agreement of many banks states that in case of early termination of the deposit, the interest rate will be calculated at the “Demand Deposit” rate, which usually does not exceed 0.5-1% per annum.

I rarely use deposits where the deposit period is more than a year. Circumstances change, conditions change, and it is important for me that I can quickly manage my money.

Deposit currency

There are three main currencies common in Russian banks: rubles, dollars and euros. The interest rate on deposits in rubles is usually much higher and fluctuates at 13-20% per annum at the time of writing.

In dollars and euros, the interest rate ranges from 6 to 9%. It is worth noting that people who made deposits in foreign currency before the crisis earned very good money. Considering that from November 2008 to the present day, the value of the euro and dollar has increased by an average of 30%.

Add to this the interest rate. Let me explain with my own example: on November 6, 2008, I opened a deposit in one of the banks, in dollars, at 9% per annum, for a period of 222 days. The deposit amount is $1000. I deposited 27,510 rubles.

Interest is calculated at the end of the term. It will be 1054 dollars, which in terms of rubles, at the rate of 31 rubles per dollar (dollar exchange rate as of May 23, 2009), will be: 32674. The profitability will be about 18%. The contract expires on June 16, 2009.

Possibility of partial withdrawal of the deposit without loss of interest

This is another interesting parameter. If we continue to consider the previous example, I forgot to mention that my dollar deposit does not have the possibility of partial withdrawal or withdrawal of the deposit without loss of interest.

Otherwise, I would have withdrawn the money when the dollar was worth 35 rubles. This option will also be useful in other cases. For example, I have a deposit in another bank, where partial withdrawal is possible.

Free video course to help you with this.

Video for dessert: Unique transforming miracle cubes

It would seem that it could be simpler than bank deposits. He took the money, took it to the bank, and deposited it. The client is happy, the bank is happy and the money is credited. This is what it looks like at first glance. In fact, to avoid getting into trouble and really increase your income, you need to have a holistic view of deposits. First of all, you need to clearly understand that a bank is a structure aimed at making a profit. The bank is interested in its profit, and deposits are only one of the means of obtaining it.

Cooperation between banks and clients.

The saying about saving drowning people is familiar to everyone. In case of cooperation with a bank, it will come in very handy. The mechanics are very simple and entertaining. By making a deposit, the bank receives money at its disposal. Upon expiration of the deposit, the client will receive, for example, 12% in the form of interest. During this time, the bank will issue this money as a loan at 20%. Having received 8% of net profit. As a result, an interesting picture emerges - the lower the interest rate for the depositor, the more the bank will earn and vice versa.

The example is given to clearly show how careful you need to be when making a deposit. All information must be collected in advance. Already going to the bank, the depositor must be sure that he has made the right choice. At the same time, having sufficient knowledge that will allow him to conclude a profitable deal. Don't become a bargaining chip in a big game. Of course, there is now a lot of information about deposits and it’s not difficult to get confused.

The main thing is not to rush and sort everything out calmly. Money does not like haste and will not run away unless prompted. Hasty decisions can not only significantly reduce your income. But it also jeopardizes the very existence of the investor’s financial security. In this regard, it is worth repeating once again - decisions should be made carefully and wisely.

What is a deposit?

In simple words, a deposit is money that the client transfers to the bank for a limited period under certain conditions. Conditions refer to both the interest itself and the formula for calculating it. Paying attention only to the interest rate is not only the biggest, but also the most common mistake. How these interests are calculated plays a big, if not the most important, role.

Deposits can be urgent and on demand. The latter are very similar to the former, only the interest rate is usually significantly lower. And the conditions for receiving the deposit back may be different. Which deposit category to choose depends on personal preferences, time frames and other conditions. As for more traditional, time deposits, they are usually divided into three categories:

Short-term deposits – the agreement is usually concluded for a period of 1 to 3 months;
medium-term deposits – in this case the period increases from 3 to 9 months;
long-term deposits - all deposits for a period of 9 months or more are considered to be such.

It is important to understand that time deposit deposits can only be received upon the expiration of the deposit period.

How is interest calculated?

Depending on the type of deposit and the goals of the depositor, the methods of calculating interest vary significantly. Accrual can be made:

At the end of the deposit period;
at certain intervals (monthly, quarterly, etc.);
with interest capitalization;
without interest capitalization.

The main differences are most conveniently illustrated with an example. Interest on deposits that accrues at the end of the term is simply added to the principal amount. So, having deposited 100 USD. at 12% per annum, the client will receive 112 USD upon expiration of the term. The situation is similar with the accrual of interest at regular intervals. If interest is calculated, say, once a month, then the calculation is made using the following formula:

(100*0.12)/12=1

Where is 100 USD? – deposit amount, 0.12 – 12% per annum, 1 c.u. – monthly interest. Payment of interest allows the investor to receive a stable income every month. At the end of the deposit period, he will receive 100 USD back.

The miracle of interest capitalization!

Having decided to put money on deposit, the investor must be sure that he will not need this money for the duration of the agreement. If such confidence is present, then deposits with interest capitalization can be considered a very profitable deal. The method of calculating interest in this category of deposits is very similar to that described above. With one significant difference. Interest is added to the total deposit amount once a month or once a quarter. And the next accrual takes place taking into account these percentages. Example:

1 month: (500*0.12)/12=505 USD at the end of the first month;
2nd month: (505*0.12)/12=510.05 USD at the end of the second month, etc.

It is not difficult to guess that upon expiration of the deposit period, the investor will receive a fairly decent amount. The difference will be even more noticeable when compared with a deposit without interest capitalization. There are also deposits that allow you to add money to your main account at any time. In this case, everything is simple - interest will be calculated taking into account the added amount. The larger the amount, the greater the profit.

Which currency should I choose for my deposit?

Oddly enough, but with currency everything is quite simple. The deposit is often worth making in the currency available at the time of the transaction. Or in the one that the client wants to have at the time of expiration of the deposit. Unnecessarily converting from one currency to another will only increase monetary losses. For those who have opened a deposit with monthly interest payments, it is most profitable to do this in national currency.

What else should you pay attention to?

The factors listed above are the main ones when opening a deposit. But there are a number of subjective factors that should also be taken into account. Among them are:

The reputation of the bank and the professionalism of its employees;
ease of making a deposit;
availability of information about account balance, etc.;
service fees, etc.

Such moments will allow you to establish fruitful cooperation. Which, among other things, will be pleasant and comfortable for the investor.

The tendency of people to preserve and increase their wealth has been known since ancient times. But if previously money had to be hidden in chests, then with the development of financial relations a person can take his savings to the bank and not only keep them safe, but also make a good profit.

In this regard, the term “deposit” has firmly entered our vocabulary, implying a banking service for storing money and paying certain interest. What is a deposit? And how does it benefit financial institution clients?

Term "deposit" comes from Latin depositum, meaning “pledge” or “thing given for safekeeping.” The history of deposits dates back to the times of Ancient Hellas, when large sums of income from land rentals and offerings from parishioners accumulated in temples.

Then the priests were faced with the task of increasing these funds, so they began to invest them in all sorts of profitable enterprises. Over time, money changers appeared in many countries who accepted gold coins from the population and guaranteed payment of their equivalent after some time.


Thus, the first deposit operations, which are widespread today, were born.

Today, a bank deposit is understood as a sum of money that the client transfers to the bank with the condition of subsequent remuneration. By accepting funds from individuals and legal entities, financial institutions put them into circulation and share them with their investors.

Since, like any entrepreneur, a bank can become bankrupt, the possibility of non-return of money is subject to insurance by independent organizations. In Russia, deposit insurance is carried out at the legislative level and provides for 100% payment of invested funds, but not more than 1.4 million rubles.

Depending on the terms, deposits are divided into time deposits and demand deposits. In the first case, money is deposited in the bank for a specified period and is completely withdrawn after this period.

In agreements on demand deposits, a storage period is not established, and the money is returned at any time at the request of the depositor.


As a rule, time deposits are much more profitable because they are accepted at higher rates, but have less liquidity.

In addition to bank deposits, there are deposits when renting an apartment, which have a slightly different meaning. When renting, an agreement is concluded between the tenant and the property owner, according to which the tenant must pay rent for the first month of residence and an additional amount (deposit) equal to the monthly payment.

Such a deposit does not bring profit to the tenant, but allows the landlord to protect himself from possible negative consequences - damage to property, non-payment of utilities. After the end of the lease, if the owner has no claims against the tenant, this payment is returned in full.

Often the terms “contribution” and “deposit” are used as synonymous words, but in reality they have some differences.

First of all, the deposit is transferred only to registered credit institutions operating legally, and the contribution is made to both banks and non-bank institutions.

Secondly, only cash is used as a deposit, while securities, precious metals or assets can also be used as a deposit.

Thirdly, the deposit is transferred at a certain percentage, and the contribution is transferred both for a fee and free of charge.

Deposits are beneficial to both banks and depositors. Financial institutions can use the raised funds to carry out various banking operations (for example, providing loans) and receive a solid income.


For investors, the benefit of deposits is, first of all, the opportunity to save their money and increase its volume by receiving interest. In addition, a deposit allows a person to more easily accumulate the amount for any purchase without spending money on unnecessary things.