Many people have the habit of keeping funds on Deposit at financial institutions. For many years the existence of this tool has proven its reliability in securing the safety of money, besides to open it at any Bank in minutes.
But despite the obvious benefits, Deposit there is a lack of – low interest rate. In most cases, accrued interest is impossible even to cover inflation, the contribution only allows to save own funds but not to increase them. This disadvantage is not happy depositors and compels them to look for higher-yielding Bank instruments. One of them is considered an investment.
An Investment Deposit is a Deposit whose amount is divided into two parts:
Money invested in investment funds used by banks to play the stock market, where shares are purchased in different businesses.
We Must understand the difference between individual investment account (IIA) and investment Deposit. IMS – investments, which the client can manage independently (for example, the well-known Bank organization savings Bank. Investment Deposit feature there involves trading on platforms after passing the training course).
A Client that invested in the investment Deposit, shall not take part in the process of making further deals, he just hands money to the Bank and forgets about them, spelled out in the terms of the contract.
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Pick up tools for investment it may be your own, however there are certain restrictions. The banking institution provides a list of mutual funds from which the customer can choose what he wants. Opportunities to acquire shares of other companies he will not have this item in the contract.
In addition, the Bank is solely responsible for decisions on the allocation percentages of contributions and payment in mutual Funds given the fact that the Deposit may be issued in an amount not exceeding the value of the purchased shares.
The Basis of the investment of deposits is that the Bank creates a Fund of money made a large number of owners of capital, and then distributes funds on the grounds of the stock market. Earned as a result of trading the profit is divided between all depositors, taking into account the deduction of interest the management company as a fee.
Minimum Deposit amount is set by the Bank and, most often, it is equated to the value of 100 thousand rubles.
The Following feature is the insurance investment deposits. If the usual Deposit may be insured on easy terms, investments in mutual funds are not insured, because investments in this case are different.
As mentioned above, the mutual Fund consists of funds of its depositors and managed by a third party for a fee. The positive moment of a unit of deposits is that funds can be redirected to any area of the economy to maximize profits.
For this reason the income received from mutual funds, are not subject to insurance. Often in the stock market is a game, the results of which are impossible to predict. Profits from mutual Funds are not less subject to various risks and leaps, nonetheless it has the potential to bring the greatest benefit.
The conclusion of an agreement on investment with a mutual Fund you need to fulfill several conditions:
The Game in the stock market, one way or another, involve risks. The money invested can be multiplied, but their total loss is also possible. In accordance with the law, to dispose of the state to take responsibility for their actions, fully knowing the consequences, allowed to persons who reached the age of majority.
The Next moment – it is a taxation. Depositing funds in mutual resources is considered as entrepreneurship, accordingly, is taxed. Despite the fact that underage persons may be payers of taxes, the legal side of this issue is so inaccurate, all discussions that occur on this issue can only be resolved by the judiciary. Actually, this is the reason to make the investment deposits can only be of full age and received a full capacity.
In case of loss or loweringassets of mutual funds all issues are resolved in a judicial order, and in accordance with the current legal system there is a requirement for confirmation of ownership of deposits.
The Legislation does not allow major investment without confirmation of the status of citizen, but at the same time requires no explanation, from what sources were taken savings. For registration fee only need a document from the workplace even if the client employed a janitor.
The first thing to consider banking institutions located in close proximity to your area of residence. In the event of the need for personal presence you can quickly get.
Many financial institutions offer the registration of investment contribution, consider the most popular of them:
Bank Name | Logo Bank | PSB | Gazprombank | Rosgosstrah Bank | Raiffeisen Bank |
The Rate, in percent | Of 9.05 | 9,5 | 8,1 | 8 | 6,5 |
Amount in thousands | 100 | 50 | 50 | 100 | 50 |
The Term | 400 days | From 6 months to a year. | From 100 days to a year. | From 100 days to a year. | From 100 days to a year. |
Replenishment | No | ||||
Extension | Only Possible PSB | ||||
Capitalization | No | ||||
Partial withdrawal | Only Possible in Loco Bank | ||||
The Preferential terms of early termination | No | ||||
How interest is calculated | Every month | At the end of the period | At the end of the period | At the end of the period | At the end of the period |
From the table we can highlight the following features of investment products that offer its customers banks:
The Process of registration of the investment contribution is virtually no different from opening a normal Deposit.
You have to understand what an investment contribution. Opening it is as follows:
The procedure of registration of the investment Deposit is not difficult, the employee of Bank branches will help the client in the design and acceptance documentation, and advise on all issues.
For customers who previously used similar products the Bank provides the access to Deposit via your personal user account. You need to know beforehand about this opportunity.
In Addition to investment banking deposits there are so-called high-yield projects, referred to as HYIPs.
HYIP or HYIP (High Yield Investment Project) is translated to English as the investment project with high profitability. However, this investment Deposit, customer reviews, a fraud.
The Principle of operation of such projects similar to the Ponzi scheme. A high payout percentage is provided by the incoming of new deposits, which contribute only registered users. Thus, a project fueled by new money, but as soon as the funds cease to flow and ceases to suffice to cover obligations to depositors, payments end and the HYIP closes.
Fraud is that the whole system is disguised as a fictional legend that is invented by history, due to which investors get interest. Investors with experience, well aware of all this and realize possible risks associated with funding such projects.
Such banking products as a transitional form from liability to asset, have all chances to exist. Investment deposits with banks, customer reviews which are quite controversial, it is reasonable to open with the minimum amount and to evaluate the results, especially since the Deposit period is quite short with a relatively high percentage.
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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
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