Certificate of Deposit. Savings and deposit certificates

Many investors in the financial crisis can be very concerned that their savings not only remain safe, but also, if possible, multiply. Some choose a simple way and keep money at home (not the best option), others buy gold or currency, and others open a bank deposit. Today, the best recommendation for those who want to preserve and increase their assets will be to deposit money in savings and deposit certificates. They serve as the most reliable and predictable ways to save money from inflation. Let's take a closer look at this nesting method.

Certificate of deposit

What it is?

A certificate of deposit is a security with the highest degree of protection, which serves as confirmation of the deposit amount. You can purchase it in banking structures for a period of three months to three years.To buy a security it is enough to come to the bank with accumulated savings and a passport. The depositor can issue a nominal deposit certificate or bearer. The issue of these securities is made in the amount of 10,000 rubles or more, while they have a certain period, as well as a fixed interest rate.

If the certificate is issued to the bearer, it can be used as credit security, will be accepted for payment at authorized bank branches, and can also be transferred to other persons, without any restrictions. When it expires, it returns to the bank, where the investor will receive the amount of his deposit with the interest indicated in the security. If the deposit is withdrawn ahead of time, then the depositor is given the amount of the deposit with interest that has accumulated at the moment. It does not matter what situation the bank is in, the conditions for working with the client will not change, just as there will be no “cuts” in the interest rate (unilaterally such actions are illegal).

Merits

Bank deposit certificates have certain advantages over regular bank deposits.The most important of them is that it can be donated or transferred to another person without any difficulties, and there is no need to notify the bank and issue a notarized power of attorney. To transfer the nominal certificate of deposit, it is required to specify the passport data of the new owner on the reverse side of the security. Convenient certificate to bearer as collateral or collateral when applying for a loan. So, you can get a loan in any bank for an amount that should not be more than the nominal value of the certificate. Thanks to this solution, you can reduce the loan rate by 6% per annum.

Savings and deposit certificates

Features of the nominal price of paper

Registered savings and deposit certificates are securely insured. The depositor has the opportunity to return savings in case of problems with the bank that issued the securities. In case of force majeure circumstances, it is possible to cash out a savings certificate to the bearer only after the bank is declared bankrupt. As well as other types of deposits, the certificate of deposit is subject to personal income tax. This, too, must be considered when purchasing it.

Species

A certificate of deposit is a security with a large nominal value, which serves as confirmation of the amount of the deposit made to the bank by a legal entity at a fixed interest rate and for a specific period. This type of securities is intended for use as a debt receipt, as these funds will serve as collateral in the event of a loan. A certificate of deposit can be sold, mortgaged or transferred to another owner.

Increased profitability is the hallmark of such securities. Deposit certificates of banks can be registered or urgent. When the maturity of the security expires, the investor receives the invested amount and interest. Certificates of deposit are issued by each bank in the currency of the Russian Federation, and all calculations are carried out in a cashless manner. These banking products are fairly reliable, so interest in them from investors is becoming more and more noticeable.

Securities

Solvable tasks

First you need to note the difference between the certificate of deposit from the classic term deposit. The most important difference is that it is a security that serves as an asset in itself. A deposit is only an agreement between an enterprise and a bank.Accordingly, the issuance of certificates of deposit is accompanied by a transformation of assets, as well as a change in their composition: liquid funds of the company are exchanged for a certificate of deposit. This leads to certain consequences.

Another feature is that such securities do not impair liquidity, since the company has the possibility of selling a certificate. Like all other types of securities, this one can circulate on the market and be resold, but there are certain nuances here. To understand them, you need to consider the types of certificates of deposit:

  1. Name - suggest that payments will be made only to the person who is indicated as an investor in the certificate. In this case, to transfer the rights to these securities to another person, an assignment is required.
  2. To bearer - assume the payment in favor of the person who was presented with a certificate in the bank. These securities have the opportunity of free circulation on the market throughout the entire period of their validity.

Deposit certificates of banks

Tasks of certificates of deposit

It turns out that the list of such tasks is very different from those that are solved through an urgent deposit.The company has the opportunity to invest money in the certificate of deposit, defining in advance the period of investment. And in case of need - “painlessly” to sell these securities. It is important to understand that the losses associated with the early implementation of the certificate will be less than the losses in case of early termination of the bank agreement on the investment of funds.

For this reason, the certificate of deposit of Sberbank or another financial institution serves as a good tool for the temporary placement of monetary assets. In addition to the fact that money will be protected from inflationary interest, there is also the possibility to receive additional interest income. The certificate can be sold on the stock market.

Certificates of deposit issues

Domestic practice of implementation

In the Russian banks such product as the certificate of deposit is offered. It can be in rubles or in currency. The most popular papers on deposits in euros and dollars, since their inflation is much lower than in the case of using the Russian ruble.

The interest rate on such securities is higher than on term deposits, since they are not protected by the deposit insurance agency, while the bank can offer higher interest rates.The deposit certificate to the bearer is characterized by a lower return in comparison with the nominal one.

What does the investor face?

The main difficulty in the case of the acquisition of this type of securities is in relatively large amounts of minimum deposits, and because of this, the financial product will be positioned as a solution for large and medium-sized businesses. In the banks of Russia, the minimum rate is 100-500 thousand rubles.

Deposit certificate of Sberbank

Repayment terms

The deposit certificate, whose expiration date has already come, will be redeemed in full with a mandatory payment of interest on the deposit. If a security is presented which has not yet reached the end date, then it is redeemed in full, but interest is paid by calculating at the rate specified in the text of the certificate.

Some banks charge an additional fee in the case of the cession, while others do it for free.

Popular product

Certificates of Sberbank of the Russian Federation are the most popular. The rate on them is at the level of the rate on deposits, and sometimes exceeds it.The certificates do not provide for capitalization of interest, since a fixed rate is initially established. The Savings Bank of Russia issues bearer certificates only.

Registered deposit certificate

Terms of issue

The bank is a legal entity, therefore, in accordance with the existing rules, it may engage in the issue of shares and bonds. These securities have the same properties as their counterparts, which are issued by joint-stock companies. In addition to these securities, the bank has the right to issue specialized savings and deposit certificates.

A bank certificate is attractive to investors because it is a security. In terms of reliability, it ranks second, and government securities are in the first. The holder of a bank certificate is more likely to receive a refund in comparison with shares and bonds of the joint stock company.

Difference

A certificate of deposit is a written bank certificate stating that the holder will be paid deposits and interest on them. Savings certificate is a document that serves as a bank obligation to pay savings deposits of individuals placed with him.

The terms of issue and placement of both types are similar, the differences are that the certificate of deposit is used exclusively for servicing legal entities, and the savings certificate is for the public. Persons, legal or physical, who have made their contributions to the bank are referred to as beneficiaries or depositors. They have the right to receive the deposit amount after the expiration of the established period, as well as interest on it.

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