A bank deposit is a certain amount of money that an individual or legal entity transfers to a bank to make a profit based on interest accruals. Financial transactions provide interest.
For example, a bank attracts a deposit from one client, and gives it to another, as a loan.
What are the conditions for making a deposit?
Each financial institution has its conditions for customers. Most banks offer several programs for investors at once, which imply various conditions, interest calculation principles. The main types of deposits:
It can be long-term, medium-term, and short-term. Long-term deposits include deposits that are issued for a period of twelve months, but a short-term loan can be issued for a period of one to three months. As for the medium-term loan, its duration is from three to nine months. When using a fixed deposit, it is not advisable to withdraw funds earlier than the date specified in the agreement; otherwise, the profit may be less.
It is a contribution that can be made for any period, amount, or purpose.
Accounts that do not have a low percentage of income or completely zero rates are used. An advantage is the ability to withdraw at any time, as well as transfer money to the accounts of other persons, enterprises. Also, the depositor can cash out his money at the cash desks of banks or ATMs.