Demand deposit: advantages, disadvantages, design nuances

After receiving a large amount of money after the saleexpensive property (for example, a car or an apartment), the seller will certainly worry about the safety of money. Many experts recommend investing any money in the business so that they work (and this really makes sense). But in fact there are times when, selling one car (an apartment, a dacha), a person plans to buy soon another, then there is no question of any "work" of money.

On the other hand, the search for a new purchase can take quite a long time, during which the money needs to be stored somewhere.

One of the most successful options in such situations is the demand deposit.

You can, of course, rent a safe and keep money there, but in this case you will have to pay rent.

In the same case, when money deposits are opened, on the contrary, the bank will pay interest to the depositor.

Of course, if you open a demand deposit,it is not necessary to count on high interest rates (in many banks the rate for such deposits does not exceed 1%), but the essence of this action is not to earn, but to not worry about the safety of the funds.

The main advantage of the demand deposit isthe ability to withdraw money at any time without additional contracts, agreements and other paper red tape. The main thing is to have the necessary amount in the desired currency in the cash department (for this, it is advisable to order it in advance). Of course, there are other deposit programs, under which the client has the right to partially withdraw money from the account without terminating the contract, but they still require additional efforts from the client, and the entire amount can not be withdrawn from them normally.

In addition to unchecked withdrawal of money,demand is still good because it opens for an indefinite period (the contract will remain in effect until the client closes it). Any term deposit can be issued only for a certain period, after which it can be automatically renewed, but this can not last indefinitely - at a certain moment the contribution will cease to be lined up. In general, the client will need to monitor the status of his deposit, which is not always convenient, and demand deposits do not need it.

As for the shortcomings of theprogram "on demand", the main one is low interest. If we consider all cash deposits in all banks, then demand deposits can be considered as interest-free, so the rate will be negligible. Nevertheless, in situations of complete financial uncertainty, the demand deposit is just what is needed. If, after some time, it turns out that money will not be needed in the near future, it can be re-entered into a term deposit to earn more interest.

It turns out that the type of deposit "poste restante"it is an excellent opportunity to temporarily leave your money in the bank for storage, without paying any rent and without losing commissions when replenishing or withdrawing. But constantly keep money on this deposit is not necessary - there are more advantageous options.