Own business: hosting company
Industrial society was replaced by post-industrial or, as it is also called, informational. The modern world is impossible without high-speed transmission of information, pigeon mail has sunk into oblivion, having…

Continue reading →

Deposit: what is it and why is it needed?
Deposit - storage of funds in banks, which in certain conditions and within a certain period are subject to return. The term "deposit" comes from the Latin language and is…

Continue reading →

How to make money in the US stock market
What is the stock market? - These are purchases, and after - resale of valuable goods, which include stocks or indices. The place where trades take place is called trading…

...

Rules of communication with customers by phone
The impression of the company is formed in the first few minutes of a conversation with its representative. More than 95% of such conversations take place over the telephone -…

Continue reading →

Barbershop Business Plan
Barbershop is a trendy men's business that can bring good profits and become a matter for the soul. In this article, we calculated what the opening of the men's salon…

...

Deposit: what is it and why is it needed?

Deposit – storage of funds in banks, which in certain conditions and within a certain period are subject to return. The term “deposit” comes from the Latin language and is translated as “pledge” or “thing deposited.” Under the bank deposits understand the funds that the client sends to the bank with the condition of cash reward. This means that the financial institution puts this money into circulation, then makes a profit and shares it with investors.

Given the time, deposits can be divided into several categories:

“demand” deposits;
term deposits.
1. “On Demand” – such deposits can be withdrawn from a bank, turning them into cash and receiving a transfer at an ATM or at the cash desk, as well as transferring them to the necessary organization or other person. Usually all current accounts of investors belong to this category.

2. Term deposits have a predetermined period when it will be possible to withdraw their deposit. This category of deposits is divided into the following types:

short term (1-3 months),
medium term (3-9 months),
long term (long term).
It should be noted that earlier deposits cannot be withdrawn.

Why invest your money in banks for storage?
To say that it is necessary for security will not. So everyone understands that the method of storing money in a bank is much safer than hiding it at home under a pillow or in a drain barrel.

The main advantage is that for keeping money in the bank, you will be paid interest. That is why, in addition to reliability, the investor also receives a considerable income.

Interest Calculation Methods
Interest is charged in several ways: with or without capitalization, with a certain period and at the end of the term.

If interest is accrued at the end of the term, then the amount of the deposit at a certain point, depending on the amount that is stored in the bank, is a profit, depending on the conditions. That is: if you have 500 dollars on your account for a period of 1 year at a rate of 10% per annum, you will receive 500 + (500 * 10%) = 550 dollars in a year.

Once a month, the bank’s information system will check the amount of your deposit balance, depending on which interest will be calculated.

Income from the deposit can be received once a month, quarter or year. Thus, the amount of the deposit cannot be changed, and interest will be accrued regularly. The methods described above are interest without capitalization.

With capitalization, interest is calculated as follows: if interest is charged every year, quarter or month, then in subsequent periods the income will be taken into account from the total amount of the contribution (together with the addition of these interest).

There are some deposits in which you can add deposits. Here interest income will increase proportionally.

It is important not to take a deposit early. After all, then his income can not be noticed. Consider in advance whether you can do without a certain amount of time for a certain period of time. You should not give your money to the bank, which has high interest rates, compared with other banks. This means that the bank has few depositors and they lure new ones with high interest rates. And there is a possibility that the bank will soon go broke. Keep your money only in verified banks.

Own business: maintaining your channel on Youtube
Maintaining your channel on Youtube can hardly be called a full-fledged business, but to some extent this applies to business activities. Moreover, today there are real examples of how people…

...

Stamp and seal: their difference and difference. All about seals and stamps
Today, none of the organizations can do without stamps or seals. All this in order for the documents of a company to acquire an official look and to be unique.…

...

Cryptocurrency: what it is, why it is needed, pros and cons
A few years ago, few people heard about cryptocurrency. Gradually, people began to learn more about it and now it is one of the most discussed topics in the whole…

...