What are investment deposits for individuals in a bank?

What are investment deposits in banks? All people who want to invest their funds and increase them to the maximum are beginning to become interested in this question. And it is right. After all, any investment of your money, even if it’s just opening a deposit in a bank, carries certain risks. And in order to get maximum income from your investments, you must first understand all the intricacies and nuances of your investment.

And for anyone who wants to open an investment deposit in a bank, this article will be especially useful. From it you will learn what an investment deposit is and how it differs from a regular bank deposit. And also, its main advantages and disadvantages, and the main features of its discovery.

What is an investment deposit in a bank?

If income is important to the client and he is ready to take risks, the bank offers an investment deposit - a complex product with the distribution of the investment amount between a regular deposit and an investment in a financial instrument with increased risks. In contrast to independent activity, a bank client purchases shares, precious metals, shares through investment funds, transferring the right of management to employees authorized by the bank. This means that the risk of making a wrong investment decision is minimal.

Investment deposits are distinguished by their short-term nature - within 6-12 months - and increased profitability - 8-10%. The amount of placement also differs from a classic deposit - to start investing, you will need more than a hundred thousand rubles, and more often the investor will need to own 1-1.5 million.

Since part of the funds will be covered by deposit interest guaranteed by the bank, they will be provided with insurance compensation in accordance with the Deposit Insurance System in force in the Russian Federation. The rest, placed in investments through a bank, is not provided with insurance.

If the investor bears full responsibility for the risks, receiving full profit if the result is positive, the owner of the investment deposit shares financial responsibility with the bank, which guarantees the return of the deposit portion.

By participating in investing, the owner of such a deposit retains full guarantees for a fixed income from the deposit, and opens up the opportunity to earn money with a low risk of losses from working with financial instruments. An investment fund specialist acts on behalf of the investor, taking into account the required balance, when money is distributed in several directions at once. It is more difficult to suffer a loss from a complex investment than from participating in the purchase of specific stocks. Only a large-scale collapse of the economy will lead to significant losses from investment.

Types of investment deposits

It is more difficult to classify investment-type deposits, since there are no clear parameters characteristic of classic products in terms of purpose, timing, and purpose. They can be roughly divided into:

• low-risk with minimal profitability;
• high-risk, with the opportunity to earn more.

According to the degree of risk participation, programs with a risk fee, with less protection against price failure, and without a premium, when the plans have less profit, but a guaranteed return on investment, are distinguished.

According to the degree of distribution of funds, deposits are divided with an increased deposit or investment part. In practice, many banks introduce restrictions on the share of investments - no less than the amount deposited on a classic deposit. Where the share of investment is high, the bank's interest rate is higher, and vice versa.

Where the funds will be placed is determined at the stage of signing the agreement, choosing from the areas proposed by the bank:

• mutual funds;
• ILI (investment insurance);
• NSZh (savings insurance), etc.

For each parameter of the contract, the conditions may differ, which only adds options for the classification of the investment deposit.

Existing types

Financiers distinguish two types of investment deposits. This is done based on an analysis of risk levels. There are:

• investment deposits without risk premium;
• investment deposits with a risk premium.

In the first case, the bank client is guaranteed a return of the initially deposited amount upon expiration of the contract. It is not affected in any way by the state of the stock market. If the value of shares or other underlying asset has increased, the investor will be paid additional compensation.

In the second case, the risk premium is paid by the client himself. After completion of the contract, this money will not be returned to him. Moreover, such deposits are considered the most profitable.

Advantages and disadvantages of investment deposits

When the decision to participate in an investment is made by an unprepared person who does not understand the essence of placing money, there is a high probability of conflicts and claims from disappointed investors. The decision to invest in an investment deposit must be made carefully, taking into account the advantages and disadvantages and features of the proposed product.

Positive properties include:

• since the client’s money is distributed into 2 parts, the first part is reliably protected by guarantees of a fixed percentage and is insured as an individual’s deposit, and the second part can bring even more income from competent actions in the financial market;
• to invest in high-risk products on your own, you will need solid knowledge in the investment field, which is rarely observed among novice investors, therefore the risks of financial losses are much higher than when transferring funds to experienced fund specialists for management;
• to work independently, a trader will need a large amount, which opens up the opportunity for complex strategies that increase the chances of a high percentage, and the investment of a bank investor starts from 150-500 thousand rubles. The bank may lower the minimum threshold by individual agreement;
• there is no need to open your own trading accounts, engage in daily work of studying and tracking market trends and quotes - the bank will only need the depositor’s consent, his money and passport (identifying document).

Along with the advantages, the possible negative consequences of placing funds on investment deposits are assessed:

• In case of early withdrawal, interest is not accrued; in order to earn a profit, you will need to wait until the end of the contract;
• partial withdrawal of funds (for example, if you want to get rid of the investment part) is not available, a refund is only possible for the entire amount at once;
• if participation in mutual investment funds turns out to be unprofitable, the client loses income;
• in addition to financial losses from unsuccessful placement of funds, the management company charges a commission, which only increases a person’s losses;
• a short placement period may be inconvenient if the investor planned to make a long-term investment similar to a regular deposit for 2-4 years;
• There is no provision for replenishment of the current deposit; a new agreement will be required if the amount of additional funds collected fits the product description;
• funds are placed on deposit without capitalization, with interest paid after the end of the contract.

There is another important nuance that bank representatives sometimes forget to inform about during registration - income tax is paid on the investor’s income, when such a tax is in principle impossible on interest income on a regular deposit (the bank’s rate should exceed the key rate by several percentage points, when in reality The investor's income is always lower).

How profitable are investment deposits?

At the client’s first request to increase the profitability of a deposit, a bank employee will probably offer one of the investment products where the projected income exceeds the usual bank interest rate by several points. However, you need to remember that there is risk, because part of the money is placed in financial products that do not have fixed rates.

How profitable cooperation with a particular bank is depends on the strategies and investment methods used. Judging by the average rate for investment products in different financial institutions, choosing such a deposit entails a higher final percentage. Where the possibilities of a bank deposit end, the investor's profit is just beginning. The difference in average bank rates ranges from 7.3% to 8.2%.

For banks, cooperation in the investment area is always more profitable, since it receives income in the form of bonuses from investment funds and participation in profits from the placement of funds. For cooperation to be successful, it is necessary to clearly understand the work scheme for the investment deposit and follow the proposed “rules of the game”.

Is it worth opening it?

Most often, those people who are not satisfied with the low returns on classic bank deposits resort to investment deposits. At the same time, they must be sensitive to existing risks.

In addition, the financial product in question is suitable for novice investors. We are talking about the stage when a person is actively interested in and studying the stock market, but does not have sufficient knowledge or skills to trade independently.

For a conservative investor who does not accept investment risks, we do not recommend considering such deposits. Also, they should not be opened with the last savings.

How to invest in investment deposits for individuals

A distinctive feature of investing through a bank is its simple registration and the absence of requirements for knowledge of processes and tools in the investment field. The procedure consists of 2 stages - opening a deposit and placing the second part in an investment fund.

The design scheme of this product is presented in the following sequence:

1. Familiarize yourself with the current offers of banks, choose one of them and decide on the management company (bank division). To reduce dangerous moments to a minimum, you should trust funds to trusted banking institutions that have been working in the investment market for a long time.
2. The purchase of shares is carried out with the help of a representative of the management company, based on his recommendations, taking into account personal wishes. Any increased risk can lead to loss of investment, and low-risk transactions provide more predictable profits.
3. A bank deposit is opened with the signing of an agreement (you will need a passport and TIN certificate).
4. The bank employee is presented with documentation of the acquisition of the share, recording the terms of the transaction.
5. The remaining part of the funds is placed on an open deposit. When depositing cash at the cash desk, a confirmation receipt order will be issued, which must be kept until the end of the cooperation period.
6. As soon as funds are credited to the deposit, the period of cooperation begins. Further actions to return funds along with the profit received depend on the terms specified in the contract.

Registered users of the online bank have access to the function of tracking the operation of the investment deposit, and upon completion of the agreement, the amount earned will be displayed on the investment deposit account.

Which banks offer to open a deposit?

The task of choosing an investment product is more complex than opening a regular deposit. Not all banks work with this product, and not every specialist from a financial institution is ready to answer the conditions and which deposit is best to choose.

When choosing a specified deposit in banks, it is impossible to rely on a single parameter - the rate, because it is not guaranteed. To choose the best offer that meets the client’s needs, it is worth considering:

• initial amount for entry;
• placement period;
• reliability of the banking structure;
• products offered to choose from.

In 2021, about twenty Russian banking institutions worked with investment deposits with varying degrees of reliability and actual investment indicators.

Below is a list of 5 large banks whose deposit portfolio includes combined products:

1. Eastern Bank offers “Growing Interest” with a settlement rate of about 8.22%
2. Promsvyazbank successfully operates in the investment field with a yield of 8.25%.
3. Uralsib will offer the investor the “Right Solution” with an average profit of 8.0%.
4. HomeCreditBank invests at 8.0%.
5. Absolut Bank – average profitability of 7.7%.

Similar programs operate in Rosselkhozbank, Raiffeisenbank, Russian Capital and other banking institutions.

What is needed to open a deposit

To start working with investment products, choosing this type of deposit is ideal. It does not require deep knowledge of the mechanisms of working with financial products, and some investments are protected by bank guarantees.

Any citizen of the Russian Federation over 18 years of age has the right to contact a bank and enter into an agreement if they have a passport.

Participation in investments is available to anyone with any level of financial knowledge, including complete “dummies.” A representative of a financial institution is obliged to explain the nuances of using the selected product, its advantages and nuances.

How to terminate a contract correctly

If the terms of placement are met in accordance with the agreement signed with the bank, there is nothing difficult in receiving funds along with accrued profit. The bank will make the necessary calculations and pay out the funds, and the contract will be terminated automatically, without the right to prolongation.

If you need to terminate the contract earlier than the agreed period, you must contact the bank with a corresponding application. To terminate cooperation early, you must contact the same banking department where the investment was made and the bank deposit was placed.

The catch is that early termination is unprofitable for the investor, since all profits are recalculated at the minimum “on demand” rate, i.e. almost zero. It is recommended to wait until the end of the contract for cooperation with the bank to bring profit, and for investments to choose an amount within the limits of that which can be freely stored in the account during the entire investment period specified in the documents.

Story

The history of collective investment dates back to the early 13th century. The ancestors of modern investment funds are considered to be the monks of the Order of St. Francis, who, when tonsured, donated their property to a common fund. This was not supposed to bring them profit, but only ensure their livelihoods.

The further development of collective investments is continuously connected with the evolution of the world stock market .

The first investment fund appeared in 1822 in Belgium, which at that time was part of the Netherlands. King Willem I of the Netherlands created a trust to invest through loans to foreign countries.

Such organizations became widespread after World War II, especially in the USA and Great Britain. An investment fund, as a form of collective investment, is still extremely popular among Americans.

45% of American households have shares in various funds

Review analysis

With the help of a combined deposit with the investment of part of the invested funds without a guaranteed interest, the investor gets a chance to increase his income with minimal risk of financial losses, since the participation of the client himself is reduced to the choice of product and amount of money. He entrusts the rest of the work to specially trained investment fund employees who have deep and thorough information about working with various financial instruments.

The consultant’s task is to identify the real needs of the investor and his willingness to invest at risk. As an alternative to participating in a mutual fund or purchasing OFZ through an IIS, the client is often offered an IZH as an investment option. Without a clear understanding of what investment insurance means, the client mistakenly believes that income is guaranteed.

There are differences between consultants and consultants, and you shouldn’t expect the same level of professionalism and attention to the client’s needs from every bank employee. It is worth studying a number of recommendations based on feedback from clients who have experience investing with the help of banks:

1. Bank employees tend to recommend those products with which they are better familiar, based on their own work experience (OFZ or shares, shares or individual investment accounts).
2. Different employees of the same bank may have different opinions about the same product.
3. It is recommended to assess the reliability of the selected project independently, relying on data from alternative sources (forums, websites, media publications).

Calculating profitability is a thankless task, since no one is able to predict the behavior of the market and the state of the economy at the time of completion of the contract. The peculiarity of the product is the absence of rights to specific shares of business structures or precious metal bars. Investment specialists are entrusted with managing money through financial instruments.

Conditions for opening

To open an investment deposit, the selected bank must have its own management company. There are also a number of restrictions and requirements for individuals.

Below is a general list of the main conditions on the basis of which a bank enters into an agreement with an individual to open an investment deposit.

• The client must be an adult (age 18) and have legal capacity.
• A depositor can only be a person who permanently resides in Russia or is a resident of our country.
• It is prohibited to open such a deposit with a deposit amount that exceeds the funds invested in the mutual fund.
• In some cases, a bank employee may request a certificate from the client confirming his income.

If the client meets all the requirements described above, then there will be no problem for him to open an investment bank deposit.