Deposit account, It is a known investment method that the savings can be stored securely and bring profit according to the maturity option. This method may be preferred by individuals or institutions for commercial purposes. According to this situation, different names are given to the accounts. For example; commercial deposits are used for businesses, while individual ones are called savings accounts. At the same time, the deposit account name is used for accounts announced in deposit banks; but in participation banks “special current account” is called.
What is a bank? How Is It Installed And What Are Its Operations?
Money deposited in deposit accounts can be withdrawn either at the end of a certain period or at the request of the owner. If interest is expected The owner can take this into account and expect his money to be valued. But this time, he will not be able to withdraw his money every time he wants. For this reason, we recommend that you make transactions in deposit accounts opened for investment purposes after you are confident about the maturity. Now let’s learn what deposits are and get to know their accounts better:
What is a Deposit?
It is a banking product in which the money deposited on the accounts of real and legal persons at the bank is served for a term or indefinite period. Not just coins, money substitute also non-cash products can be used in deposit accounts. With deposits, not only savings can be valued, but they can also be stored and used.
Accounts can be of two types based on deposits. The first one is created with the local currency. Turkish lira deposit account, the other is a foreign currency deposit account (DTH) in the biçim. For banks, the importance of the deposit source is separate. Because banks recycle the deposits they provide from their customers to the economy through various methods. In fact, we can say that if banks do not have deposits, it is not possible for them to continue their functions. For this reason, banks resort to various methods to provide them with deposits.
Of the deposit; It özgü elements such as giving it for return, being able to be tied to demand or maturity, its subject being money or similar products. It is valid for all types of deposits. Individual or commercial customers may also use deposits for certain purposes. These are in the biçim of income generation, accumulation, storage and management. By creating their expectations, they open a deposit account of the type they want and it is aimed to achieve their goals.
What are the Types of Deposits?
Deposit types were created according to the needs and objectives of the bank customers. These are demand deposits, time deposits, deposits with notice and broken time deposits. Each özgü different properties and can be subject to different processes. The most used by both retail and commercial customers before banks; time and demand are deposits.
Demand deposit
The money deposited in the bank account remains in demand deposits; it özgü the purpose of storing, collecting or using it in transactions. You can deposit and add on whenever you want. In the same way, you can use and withdraw as you wish. There are no restrictions on this type of deposit.
When you have a demand deposit, the bank should keep you ready at all times. In this case, it is difficult for the institution to make use of the money in demand deposits and to provide financial resources such as loans to those in need.
Anyone who is actually a bank customer owns the demand deposit type. Especially corporate customers also have DTH accounts. During the day, the functions of corporate customers are also heavily available on the accounts and take place as an outflow or receipt of money.
When we look at it as an individual customer, you have such an account and you use or accumulate your money in it, in your credit rating It will create positive effects. (Additional info: What is a Credit Rating?)
Term deposit
The purpose of bank customers to request time deposits is to earn money on their money. The savings are credited and a time frame is determined. This time period is in the notification 1, 3, 6 and 12 months or more determined as. However, daily time deposits are also made in banks. The interest rate is adjusted over the deposit term you have determined in your agreement with the bank. At the end of the term, you can use your interest income along with your principal.
When looking at term deposit, it is a type of investment. Because you trade your money. You rent your money to the bank and get income in return. Most importantly, your principal is not changed. It is one of the most important reasons for investors to prefer banks. The risk of loss found in other investment markets is not found in the time deposit product.
Time deposit transactions can be made by both individual and commercial customers. It is also made in DTH accounts, but the interest rates very low It is not the most preferred type because it causes low returns. Especially small foreign currency are not used much in balances.
Notified Deposit
It is one of the methods developed by banks to use money in their own way. In case of withdrawal of the money deposited into the account, if the money is in the deposit account with notice, it must be informed 7 days in advance. In the event that it is not informed or is late, the bank özgü the right not to give the money.
Broken Term Deposit
It differs from time deposit in terms of operation. That is, their terms are different. It özgü been developed for those who cannot comply with the 1,3,6,12 months or more condition of the time deposit. While determining the deposit periods in their money More than 1 month and less than 3 months If he wants, he will perform it in a broken time deposit account. Likewise, it is valid for other maturity periods.
How to Use Deposit?
Saving your money thanks to banking services, evaluation and if you have an idea of saving, you should first go to the institution where you want to process your transactions. If your goal is to keep and accumulate, the choice of a bank does not matter much. You can go to any bank you want. But evaluating is where interest rates are involved and it is important that you choose.
You should examine the deposit rates offered by banks to you, with the thought of where you can best use your money. Making your transactions with the bank that gives the highest rate ensures that your money is valued better and your earnings are higher.
You go to the bank of your choice and state your purpose and say you want to open an account. Your account opening transactions are ready for use after certain procedures have been completed. What kind of deposits you will make on your accounts, if you make agreements with the bank accordingly. You deposit your money into the account and complete your deposit.
If your money is in demand deposits, you can use it for all kinds of banking transactions. If it is a time deposit, you cannot use it for the period you specify. When you want to use it, you have to give up the interest rate income and you only trade on your principal.
Services of banks; It is shaped by the needs of people. Deposit transactions, who want to make use of their money investor spirited It is a type of service designed for individuals. One of the main requests of people to keep their money in banks is to be a safe institution. In fact, there are many advantageous investment markets where they can increase their savings. These are as you guessed stock market and forex. But these markets are risky and are viewed without gain.
How Can I Evaluate My Small Amount?
Although it is a wrong thought, the reason for this is the people who have invested in the markets unconsciously and lost their collaterals instead of increasing them. Markets have this risk; It gives the banks their way to investors who want to make use of their money without losing money and avoid taking risks.
The most commonly used banking service type of deposit tying aims to earn a profit. In this way, customers can safe they entrust an institution and make it valued.
