How not to break through the middle of the opening of bank propositions and make such a deposit, which is ideal for you? If you want to make a deposit, so that you can pick up a car or a house on the omriyan, if you want to get your mother’s additional income, and if you just want to save money, save money. Many people are many different situations and, fortunately, many people have different deposits in Ukrainian banks. Let's marvel at what you want to do with respect, stealing a string deposit in the bank, and at the same time choose the best options in the fallowing for everyday needs.
Basic mind deposits
Key parameters, for which it is necessary to give respect, stealing the contribution :
- deposit currency
- deposit term
- per cent rate
- order of payment of vіdsotkіv
Also, deposits are mutually supported by other minds - the possibility of replenishment, private rent, pre-term expansion and prolongation.
Choose the deposit currency
There is a classic and quite valid recommendation - to keep savings in several currencies. This approach will help reduce exchange rate and inflation risks. The greater the amount of your savings, the more important this rule becomes.
You can make a deposit in Ukrainian banks in one of three currencies - hryvnia, US dollar or euro.
If you have funds in hryvnia and in the future plan to spend them in hryvnia as well, or if your priority is to receive additional monthly income, in this case your optimal deposit is hryvnia, because you will not lose on currency conversion and will receive high deposit rates.
Foreign currency deposits are, on the contrary, many times less profitable. However, today Ukrainian banks offer the product "Currency for deposit", when you can buy a dollar or euro at a rate that is approximately 10% more favorable than the market rate, subject to further placement on deposit. If you are interested in transferring the hryvnia to the dollar, the currency for deposit is your ideal option.
We choose the optimal term of the deposit
It is traditionally believed that the longer the term of the deposit, the higher the yield. However, in reality, banks offer higher yields for the terms they are most interested in at the moment. This is influenced by many factors: the change in the market situation and the needs of depositors, the introduction of new requirements and restrictions by the regulator, and the seasonality of lending.
Short-term deposits are a reasonable and convenient solution in a situation of instability and uncertainty. With such a deposit, you will be able to react more quickly to changes in the market situation and, if necessary, get funds back faster. It is more convenient to choose a short deposit, which provides for the possibility of extension, so that it is automatically extended without unnecessary actions and visits to the branch.
We choose the optimal method of interest payment
We place deposits in banks to receive additional income in the form of interest on the deposit. And it is for this reason that we often simply choose the deposit with the highest interest. But is the most profitable deposit always the deposit with the highest rate? The maximum amount of the interest rate of the bank is mainly set for deposits with interest payment at the end of the term, however, such a deposit does not always ultimately bring the highest benefit.
Which interest payment should be chosen? There are three most popular ways:
- monthly interest payment;
- interest at the end of the term;
- monthly interest capitalization.
If it is a priority for us to receive income every month, then obviously only deposits with monthly interest payments will be suitable for us. And if our goal is to accumulate the maximum possible amount of funds? There are two options here - a deposit with interest payment at the end of the term, or with capitalization.
How does a deposit with capitalization work?
If your choice is monthly capitalization of interest, then the income on this deposit is calculated every month, but is not paid to you, but is added to the amount of your deposit. Thus, the volume of money on which interest is accrued increases monthly, and therefore the amount of interest. As a result, at the end of the term, you may well receive a higher amount of interest paid than in the case of placing a deposit with interest payment at the end of the term.
To understand which interest accrual will bring a higher yield, you should use such a convenient tool as the deposit calculator, which is available on the website of each bank. Also pay attention to other differences that are important to you, for example, whether the deposit provides for extension or the possibility of replenishment.
What is the benefit of replenishing the deposit?
If your goal is to accumulate the maximum amount of funds, then you should definitely pay attention to deposits with the possibility of replenishment. What is a top-up deposit? This is just a great way to collect the maximum possible amount of funds. As soon as you have free funds, transfer them to a deposit without delay, and you will immediately receive income for the increased amount of the deposit. And definitely the best deposit is a top-up deposit and capitalization of interest, when both your additional contributions and accrued monthly interest increase the amount of your deposit.
Such a deposit is also a profitable solution when interest rates on the market have started to decrease, and you can top up your deposit and receive fixed high interest on an increasingly large amount. If the situation turned out the other way around and the rates went up, then you simply do not replenish this deposit, but open a new, more profitable one.