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.
Key benefits fiduciary deposits are as follows:
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.
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.