What are the advantages and disadvantages of a savings certificate?

As soon as people have free money,they aspire not only to keep them safe, but also to increase the available amount. Let's talk with you about what constitutes a Savings Bank Savings Certificate and how it differs from deposits.

What is it like?

So, the certificate is a security,a reliable financial tool in order to save your money. They are certified by the amount that an individual is paid into an account with Sberbank, and can also be withdrawn with income after a certain period has expired. The main difference of the certificate from deposits is that it does not need to be registered for a certain person, as it is issued to the bearer. In such a situation, it can be donated, sold, bought, or inherited without special problems, and it is often used as a means of payment.

What are the advantages of a savings certificate?

- a higher interest rate compared to other deposits - 9.75 percent per annum. Thus, you can rely on higher returns on these financial investments;

- money a bank savings certificate can save a long time, and it can be presented for payment at any convenient time after the expiration of the contract;

mobility. It can be donated or sold at any convenient time and receive on hands its full cost;

- the certificate can be cashed by any person,so you do not need to issue a power of attorney or self-referral to the bank, but you should be careful and see that the certificate does not fall into the hands of scammers;

- bank savings certificate has the same protection as banknotes, so you can not be afraid to keep your funds in this form;

- the maximum amount is practically unlimited, since the securities are sold with a par value of up to eight million.

What are the drawbacks of a savings certificate?

- The minimum purchase amount is tenthousand rubles. Paper can be bought additionally, and partial removal is not provided. If required, you can return the entire amount before the end of the term, but without interest. But, with regard to deposits, Sberbank provides for early closure of the deposit with a floating interest rate after six months from the date of the contract.

- A savings certificate can not be renewed, inunlike deposits, the terms on these securities can be used again only after the securities have been fully cashed. After that, the person should again purchase a certificate.

- The third drawback, and quite significant,is that a savings certificate is not insured in the DIA system. That is, in the event of force majeure, for example, bankruptcy of the bank, the owner will not be compensated for the damage, at least in priority order.

- Accrual and payment of income on a certificateis made only after the end of the contract, while for deposits the income is transferred every month, and the funds can be placed on more favorable terms, that is, by switching from one program to another.

- Certificate of bearer can be usedin order to receive funds for any person, including a fraudster. And you can restore your rights only with the help of a court. Before you invest your money in a savings certificate, you should weigh and compare all the advantages and disadvantages, because maybe it's not worth it.