Advice 1: What is the fiduciary Deposit

The concept of the fiduciary Deposit literally means a trust Deposit. It involves opening accounts on behalf of one Bank in another. The name of the depositor in this case does not appear anywhere.
What is the fiduciary Deposit
A fiduciary Deposit is a Deposit that is placed with an international Bank on behalf of another Bank as agent. They are used in the following cases: if your money is kept in the account in a foreign Bank and you decide the portion of funds to transfer temporarily to a Russian Bank. But you do not want the name appeared in the documents, or to withdraw money from foreign accounts.

For reviews of market participants that such transactions are made more often.
In Russia among the leaders on the market, fiduciary deposits includes banks Zenit, Open, URALSIB and ROSBANK. Similar services are offered by almost all banks.
But they are popular only among the affluent. It is clear that not every Russian today has accounts in foreign banks. The average size of such a Deposit is around $ 1 million.

The benefits of fiduciary deposits

Key benefits fiduciary deposits are as follows:

  • they provide privacy and security: the Deposit is opened by the Bank on behalf of customer in another financial institution, the customer's name does not appear anywhere;

  • the possibility of obtaining additional income, since interest rates on deposits in Russian banks is higher than, for example, in Swiss - 8% vs 4%. After the crisis of 2008 the rate in Swiss banks for deposits in Euro was near zero.
    Because fiduciary deposits involve larger investments, Bank rate may be above the base. She determined on an individual basis.

Disadvantages of fiduciary deposits

Among the disadvantages of fiduciary transactions the following call. For fiduciary transactions provided by the Commission. Swiss banks, on average, receive for their services from 0.25 to 0.75% or 5% of the profits on the Deposit. The first case is applicable when you find yourself the Bank and arrange with him about terms of Deposit, the second - with the mediation of the Bank. It should be noted that the Commission at 5%, practically nullifying all the economic sense of the fiduciary Deposit.

All risks of possible bankruptcy of the Bank in this transaction are the customer's responsibility - fiduciary deposits are not included in the Deposit insurance system, since technically it is the usual interbank operation.

Advice 2: What is the Deposit

Deposit or the Deposit is money placed in a Bank or other financial institution for interest on pre-agreed terms. The funds can accommodate cash or cashless, in foreign or national currency.
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.
Is the advice useful?