Many citizens and entrepreneurs are thinking about how to get the maximum income and make a profit from their activities and their own investments. Financial institutions offer a variety of products designed for the accumulation, saving and maximization of income from citizens’ invested funds. If the goal is to achieve high profits over a fairly short period of time, it is recommended to pay attention to the investment deposits offered by financial institutions in Russia.
Not all banks offer such services, since this area is associated with a high degree of risk due to the uncertainty of the investment period. As a rule, structures with affiliated mutual funds are involved in this activity. Before you entrust your funds to the bank, you need to figure out what an investment is, what the nuances of this service are, the terms of opening and the profit-making scheme.
Features of the investment deposit
Investment banking is a rather new direction, gradually replacing traditional deposits in banks. Meanwhile, between the usual deposit and investment there are significant differences. A standard deposit is placed in any financial institution for a certain period of time with guaranteed interest in order to preserve and increase its savings. However, the usual type of banking service has an important drawback – low interest rate, and therefore low profit. In Russia, it often happens that inflation costs are so high that the percentage in the bank does not cover the losses from the depreciation of funds. In such a situation, it makes sense to consider a more profitable investment option, namely an investment bank deposit.
The main feature of this option is an increased degree of risk when placing funds for up to 5 years. If a traditional deposit implies trusting a bank of its funds, which it will manage, making a profit, on strictly established conditions, then when investing bonds and stocks of factories and various commercial organizations are bought, where it is difficult to predict the amount of profit
The amount of income will not depend on the rate set by the bank, but on what the dynamics of growth in stock prices are. Thus, the situation on the stock market, jumps and falling prices has a direct impact on profitability. Given the positive dynamics of the market, the investor has income, which can be very significant. If prices in the stock market fall and the stock depreciates, the investor incurs losses.
The riskiness of such an investment is limited – the principal amount, regardless of the situation in the securities market, will be returned to the investor at the end of the fixed period.
The principle of earning income on an investment deposit is concluded in the calculation of an increased stable interest rate on invested funds, and the additional profit obtained with an increase in the price of a share is by means not guaranteed.
Restrictions on conditions
In contrast to the individual investment account, the investor’s contribution does not imply independent steps on the part of the investor – finances are transferred to the bank for the period established under the contract, and by the end of the term the citizen applies to the bank for the final summing up.
Despite the existence of restrictions on the right to direct funds to finance an enterprise, the bank will offer a list of those securities, units in which savings can be invested. The restriction also applies to the determination of the ratio of the shares of a simple deposit and investment in a mutual fund with the observance of the condition: the amount of the deposit can not be greater than the sum of the contribution to the investment fund.
The maximum amount of investment is not limited, but in relation to the lower limit, each financial institution sets its level. Most investment proposals start at 100,000 rubles in savings.
The composition and types of contributions
Opening an investment bank in the bank is the easiest way to become a real investor, protecting the main amount of funds with a guaranteed return by the bank.
The main parts of this financial product consist of a base part in the form of a regular deposit and an additional part in the form of mutual investments.
It is the latter, an additional part, that is the source for realizing the possibilities of extracting the maximum income. Banking structures participate in the stock market by buying and selling securities on favorable terms for themselves and their clients.
There are two types of banking investments:
- Accrued risk premium paid by the investor. The client gives the funds without refund, however, and the yield of such an investment, as a rule, is higher.
- Contribution without premium payment. The bank is obliged to return the principal amount of the investment, regardless of the price per share or share at the end of the contract period. If, while investing, the value of the securities has increased, the client is paid an additional profit on the size of the share that was invested.
In order to open an investment deposit, no additional actions or efforts will be required – the stages of cooperation are similar to the process of opening an account. It is enough to appear in the branch of the credit organization and transfer the funds by entering into a cooperation agreement.
The financial organization provides advisory services – individually, based on the amount, term of the deposit, intentions and desires of the client, the best option for cooperation is selected and the terms of the deposit are stipulated.
The bank is preparing an agreement signed by the investor. This agreement acquires legal force only after the funds are credited to the account. In a number of organizations, for example, when opening an investment deposit at Sberbank, the online deposit opening service is available, which significantly reduces the time spent on the investment process, as well as increases the interest on the deposit. Funds to the account can be transferred in cash in the department or make a cashless transfer by requisites.
In the process of executing the terms of the contract, various questions may arise that can be clarified by calling the bank’s call-center.
Thus, the whole scheme of actions for opening to deposit comes down to the simplest actions:
- Execution and signing of the contract with the financial structure.
- Acquisition of investment fund units.
- Deposit money.
Investing is a product that is gaining popularity among ordinary bank depositors. The growth in demand is due to the need of the population to protect their funds from inflation and to maximize their growth by participating in transactions with some degree of risk. The legislation of Russia in terms of regulating the operation of banks and the compulsory nature of insurance protects the principal amount of the deposit. The client may not worry about the safety of his or her savings, either in the case of revocation of the license from a credit institution, or during its reorganization or bankruptcy.