Many individuals opt for one of the safest methods of capital growth to safeguard their funds: bank deposits. By placing money in a deposit account, investors can earn passive income.
However, in recent years, the banking sector has been facing a crisis, with financial institutions shutting down one after another. Simultaneously, depositors are at risk of losing their funds.
Where should one place their deposits in 2019 to ensure their funds are secure and prevent loss?
To address this question, experienced entrepreneur and founder of "RESOURCE" company, Sergey Tereshkin, has stepped forward. He has been placing funds in bank deposits and has acquired knowledge in this area that is not typically covered in literature or online sources. He is eager to share his insights with others. More about this successful entrepreneur can be found on his website: org-market.ru (OPEN OIL MARKET).
How to Open a Deposit – Useful Tips
To amplify one’s capital, Sergey Tereshkin advises heeding several recommendations:
- Many investors primarily focus on the interest rates offered by financial institutions. However, not all consider that it can be more advantageous when interest is accrued not at the end of the term, but monthly with capitalization. This way, income can continually grow, provided the depositor does not withdraw the interest each month but adds it to the principal amount of the deposit. Consequently, interest will also accrue on the interest.
- A bank deposit can be opened not only by visiting the bank in person but also online. Several financial institutions offer higher rates for deposits initiated online. Hence, depositors can save both money and time, avoiding long queues and the inconvenience of visiting multiple banking locations.
- The size of the interest rate is directly correlated with the deposit amount and the duration of the funds' placement. Shorter deposit terms generally yield lower rates, and vice-versa.
- It is advisable to place deposits only in well-established financial institutions. Trusting funds to newer banks that have not yet established a reputation, despite offering higher rates, is not recommended. Most of these organizations do not survive even for a year, leading depositors to lose their money.
- For those looking to deposit a substantial amount, specialists recommend dividing the funds into several parts and investing them across multiple banks. This diversification helps mitigate risk and reduces the likelihood of losing all invested funds.
When selecting a bank, it is essential to review genuine depositors' feedback, read analytics, and consult with financial experts. This approach provides a clearer understanding of the bank’s reliability.
Where to Find the Best Conditions
Currently, deposit options are available across various financial institutions. Most of them promise high interest rates and a plethora of advantages for clients in their advertisements.
However, it is crucial not to trust these advertising slogans blindly, as they often bear little relation to reality. To make an informed decision, individuals must independently research information, taking advantage of ratings and analytics available online.
Based on publicly available data, a list of financial institutions that offer favorable deposit placements can be compiled:
- Tinkoff Bank. This financial institution offers the highest interest rates. The greatest profits can be achieved by placing funds in the national currency for a period of 6-12 months. Interest is paid to the depositor monthly and can be transferred to a card or account. The investor has the option to capitalize on interest.
- Touch Bank. This financial structure offers favorable terms for depositing money into a savings account. Interest accrues daily, and the longer the funds are deposited, the higher the ultimate rate will be. Users can withdraw funds at any time, as there is no contract term limiting them.
- UBRIR. This bank provides investors with a comprehensive range of deposit options, promising high rates not only for deposits in national but also foreign currencies. Additionally, if an investor refers a new client who then makes a deposit, they receive a bonus on their account.
- Post Bank. Pensioners can deposit their funds in this government financial institution, which offers several different programs. Pensioners have access to a dedicated savings account, allowing them to withdraw funds at any moment.
Sberbank remains immensely popular among investors; however, the institution does not boast high-interest rates. Consequently, investors may find the actual returns disappointing. Furthermore, the bank is often reluctant to adopt modern services, forcing clients to spend considerable time and energy to deposit or withdraw their money.
It is advisable to place deposits in foreign currency. Such deposits typically offer lower interest rates than those denominated in rubles. However, this approach helps individuals avoid profit loss due to inflationary fluctuations.
