Deposit operations
According to the economic content of the deposit can be divided into groups:
– demand deposits;
– term deposits;
– savings deposits.
Deposits can also be classified according to other criteria: according to terms, types of depositors, terms of depositing and withdrawing funds, interest paid, etc.
In the world banking practice, along with the usual demand deposit accounts, such types of demand deposit accounts as science accounts (USA) have been widely developed.
Nau accounts are demand deposit accounts on which settlement documents can be issued in favor of third parties. These accounts combine the principle of liquidity with the possibility of receiving income in the form of interest. These accounts are opened only to individuals and non-profit firms.
In countries with developed market economies, the share of demand deposits accounts for about 30% in the amount of attracted resources.
Term deposits and savings deposits represent the most stable part of deposit resources. Term deposits are cash deposited in a bank for a fixed term. They are divided into:
– proper term deposits;
– deposits with prior notice of withdrawal of funds.
For term deposits with prior notice of withdrawal of funds, banks require a special application from the depositor for withdrawal of funds. The deadlines for submitting such applications are stipulated in advance, and accordingly the amount of the interest on the deposit is established.
Thus, a term deposit (deposit) has a clearly defined term, as a rule, a fixed interest is paid on it and restrictions are imposed on early withdrawal of a deposit. If a deposit is withdrawn before the term, the bank charges a penalty in the amount of a previously agreed upon percentage of the deposit amount and the withdrawal period.
The amount of remuneration paid to the client for a time deposit depends on the term of the deposit amount and the depositor’s fulfillment of the terms of the contract. With the growth of the term and the amount of the deposit increases the percentage of it. The current practice provides for the issuance of fixed deposits for 1, 3, 6, 9, 12 months or longer periods. Such detailed gradation stimulates investors to rational organization of their own funds and their placement in deposits, and also creates conditions for banks to manage their liquidity.
Savings deposits occupy an intermediate position between time deposits and demand deposits. Traditionally, these operations were carried out by Sberbank, but at the present time, in the course of competition for resources, commercial banks have begun to actively explore this sector of the loan capital market.
Foreign practice considers savings operations apart from deposit operations, emphasizing that the distinguishing feature of a savings deposit is that its owner is given a certificate of a deposit, most often a savings book.
Based on the foregoing, it follows that savings include deposits formed with the aim of accumulating or preserving cash savings.
Savings accounts (deposits) may or may not have a fixed term. The most common types of personal deposit accounts are savings with a book.
In domestic banking practice, savings accounts are opened only to individuals. In foreign practice, such accounts are also opened to non-profit organizations and business firms. Interest paid on savings accounts is usually lower than term deposits.
A variety of term deposits and savings deposits is the deposit and savings certificates.
A deposit or savings certificate is a written certificate of the issuing bank on the deposit of funds, which certifies the right of the depositor or his successor to receive funds after a specified period and interest on it.
Certificates can be registered, bearer, can be transferred or donated. Certificates can not serve as a settlement or means of payment for goods sold and services rendered.
Certificates of deposit are issued for large amounts and are purchased by legal entities. The right to claim a certificate of deposit may be transferred only to legal entities registered in the Russian Federation.
The world banking practice knows two types of certificates of deposit:
– non-transferable certificates of deposit are stored at the “depositor” and are presented to them at the bank upon expiry;
– transferred (circulating) deposit certificates can be transferred to another person by buying and selling them in the secondary market.
Savings certificates are intended for sale mainly to individuals. The maturity of term savings certificates may exceed 1 year and be 3 years if the conditions for their release are agreed with the Central Bank of the Russian Federation. If the deadline for receipt of a deposit or deposit on a certificate is overdue, then such a certificate becomes a demand document.
