Term deposits
Today we are witnessing a process of depreciation of money, although this is not visible to the naked eye. To prevent it is necessary to have at least a small income from the amount. With the help of time deposits, you will gain such an opportunity. Having put money in a bank or other financial institution, such as a credit union (deposit in hryvnias or dollars) at a certain, previously agreed upon percentage, you will receive your money from the financial institution with a percentage.
Variety of term deposits:
Deposits (Ukraine) mean the accrual of funds, in the form of interest each month or at the end of the contract are paid together with the entire amount. Interest on deposits can be credited regularly – every month, after that for the whole amount, including monthly payments, the total percentage (term deposit with capitalization) will be added. Or it may be the total percentage that is provided to the client after a period of time.
Sometimes, if necessary, you can withdraw a certain amount before the end of the term and not lose interest on deposits, but in most cases, interest is lost, or money is not given until the agreement is over.
Deposit may be cumulative. After investing, you have the opportunity to open a loan for housing or a car.
The main advantages of term deposits:
– reliability, since by concluding a written agreement with the bank, you will receive a guarantee that your money will be returned to the owner;
– a profitable deposit will increase your savings and will be safe;
– term deposits are ideal for gifts for an anniversary, wedding or birth of a child;
– the deposit can be opened to any person;
Disadvantages of time deposits:
Despite the fact that term deposits (Ukraine) have such advantages as reliability, stability, officiality, they will not be able to provide you with decent profitable growth. If you want to have high rates on deposits, you can pick up a term deposit for a longer period, which will provide a high percentage, but if necessary, you will not be able to withdraw money ahead of schedule.
Thus, when a person chooses a suitable deposit, he, first of all, pays attention to the simplicity of the transaction process itself, to guarantees for the reliability of funds, as well as to the stability of the terms of the contract.