What is a deposit account?
Many people, having a certain amount of money, want toput it into circulation. At the same time, not everyone will dare to open their own business on it or set up a business: the idea may not pay off, but money will simply disappear. To get profit and to protect yourself from all risks, people very often open a deposit account and begin to receive income from it. In the article, we will consider what a deposit account is and how it happens.
A deposit account is called a deposit to a bankfunds for a specific percentage. That is, the bank, as it were, takes the amount of interest and puts it into circulation, for which the contributor pays the interest specified in the contract. Read more about this in our article What is a deposit.
The terms of such contracts depend on a certain type of deposit account. So before you open an account, you should familiarize yourself with these types.
Types of deposit accounts
Deposit accounts can be classified by term. So, they are long and short. The former can operate for a couple of years, whereas the latter usually do not exceed 6 months. It is important to know that the longer the period, the higher the percentage.
You will also benefit from our article How to open an account with a bank.
Deposit accounts can be replenished andnon-renewable. In the first case, there may be restrictions on the amount or the number of replenishments in a certain period of time. In the second case, the depositor can not add funds to the escrow account.
In addition, there are deposit accounts beforedemand, urgent and with a minimum balance. The former are characterized by a low percentage and represent, as it were, the transfer of the amount for storage to the bank, but they can be withdrawn when they want. For the second option, as a rule, a good interest is provided, however, if the amount is withdrawn before the specified dates, the depositor loses the accrued interest. The third option is a combination of the first two, because in this case, the depositor can not withdraw a specific amount before a certain period, but by the end of it can withdraw funds above this amount. On the topic read also our article Where to put money.