What is the Deposit

In simple terms, a Deposit is money that the investor has transferred the debt to the Bank. Conditions of storage of funds on the Deposit account specified in the Deposit agreement or the Deposit agreement. From the point of view of civil law the differences in the terms "Deposit" and "Deposit" does not exist. But, however, in banking these concepts are somewhat different. A contribution is considered to be cash placed in the Bank, while the Deposit can be other values passed to storage. For example, the Deposit can be made of precious metals, securities. Thus, the contribution is one of the types of Deposit.

Deposits are time and demand. Term deposits involve depositing funds to a pre-set time by which they cannot be withdrawn or can be withdrawn partially. However, in accordance with the laws of the depositor is entitled to withdraw funds from such Deposit. In this case, interest will accrue at the rate of Deposit "on demand", if the Deposit contract is not stipulated otherwise. Often, the term deposits are called cumulative or savings deposits.

Deposits "on demand" can be withdrawn by the depositor at any time without any restrictions. However, the interest rate on such deposits is extremely low. As a rule, it is not more than 0.1-1% per annum.

Deposits can be refilled, i.e. there is an opportunity to make additional amounts of money, and non-renewable. Some deposits suggest a partial withdrawal, when the depositor can withdraw your funds from the account without loss of interest. This Deposit is a minimum balance is the amount that always needs to be on it. Deposits, which provided for replenishment and partial withdrawal of funds are deposits with the expenditure and receipt transactions. Typically, the interest on them is lower than deposits that do not involve such operations.