Once people appear free money, they tend to leave them not only to preserve but also to increase the amount available.Let's talk with you about what is the Savings Bank savings certificate and how is it different from the deposit.
So, the certificate is a security, a reliable financial instrument in order to save their money.They certify the amount that a natural person is brought to account in the Savings Bank, and maybe they took with income after the expiry of a certain period.The main difference between a certificate of deposit is that it does not need to draw on any particular person, because of his outstanding bearer.In such a situation it can be someone to give, sell, purchase or transfer by succession without any particular problems, and it is often used as a means of payment.
What advantages does a savings certificate?
- a higher interest rate compared to other deposits - 9.75 percent per annum.Thus, you can count on higher profits from these investments;
- money bank savings certificate can keep for a long time, and present it for payment at any convenient time after the expiry of the contract;
- mobility.You can donate or sell at any time and get your hands on the full cost;
- certificate can be cashed by anyone, so do not require registration of power of attorney or self-handling to the bank, but it is necessary to be careful and watch that the certificate is not in the hands of swindlers;
- bank savings certificate has the same protection as bank notes, so you can not be afraid to keep their funds in such a way;
- from a maximum of almost no restrictions, as securities sold at a nominal value of up to eight million.
What disadvantages are present in a savings certificate?
- Minimum purchase amount is ten thousand rubles.Shares can be purchased additionally, and the partial withdrawal is not provided.If you want, you can return the whole amount before the deadline, but without interest.However, with regard to deposits, the Savings Bank provides early closure of deposit with floating interest rate after six months from the date of conclusion of the contract.
- savings certificate can not renew, unlike deposits, re-use conditions for these securities only after the paper will be fully cashed.Then again, the man should purchase a certificate.
- The third disadvantage and quite significant, is that the savings certificate names are not insured in the ACB.That is, in the event of force majeure, for example, a bank failure, the owner will not be reimbursed the damage, at least, in order of priority.
- Calculation and payment of income on the certificate only at the end of the contract, while deposit revenues transferred every month, and funds can be placed on more favorable terms, that is, with the help of transition from one program to another.
- bearer certificates can be used to obtain funds to any person, including a fraud.And to restore their rights is possible only with the help of the court.Before you invest in a savings certificate should weigh and compare all the advantages and disadvantages, as can be, it's not worth it.