Prolongation and capitalization of the deposit - what is it and how to choose a deposit with replenishment and capitalization of interest on the account + 5 steps to prolong the deposit

Hello dear readers of the financial magazine Rich Pro! Today we will tell you what capitalization and prolongation of a deposit are, as well as which banks offer deposits with capitalization of interest and replenishment.

It's no secret that bank deposits are one of the most popular options for investing free funds in Russia. That is why the study of deposit parameters does not cease to be relevant.

Having studied the presented publication from beginning to end, readers will learn:

• What is the capitalization of interest on the deposit account and how often it can be made;
• What does the extension of the contribution mean and what are its conditions;
• Where you can make profitable deposits with capitalization, prolongation, as well as replenishment;
• How not to make a mistake when choosing a deposit with capitalization.

In addition, the article contains instructions on how to choose the right contribution with capitalization, how to prolong the contract. Also, at the end of the publication, we traditionally answer the most exciting questions on the subject.

Knowing the basic conditions of the deposit is useful to everyone - those who have already opened a deposit; those who are just planning to invest in a bank; as well as those who simply increase financial literacy. About everything that is important to understand, read on now!

About what is the capitalization of interest on the deposit account, what does the extension of the deposit mean and on what conditions does it occur, how to choose a deposit with replenishment and capitalization - read in this article

1. What is deposit capitalization - a concept overview + an example of calculating a deposit with interest capitalization

In Russia, bank deposits (deposits) for a very long time remain leading positions, as a way saving and augmentation funds. They are popular among both individuals and organizations. Gender, age, income level and other demographic parameters do not matter.

Most citizens clearly understand what Bank deposit. However, not everyone can define capitalization.

So, what is the capitalization of interest on a deposit account?

Capitalization of interest on a deposit account represents the addition of income accrued over a certain period to the funds invested in a deposit.

In other words, if there is a reference to interest capitalization in the conditions of the deposit, they regularly increase the deposit amount. The result of this process is that in the future, interest is accrued not only on the invested amount, but also on the accrued income.

Example of calculating interest on a deposit with capitalization

Fully and fully understand the essence, as well as evaluate capitalization benefits, can only be compared by way of example 2 interest accrual options. In this case, imagine that the deposit amount is the same - 100 thousand rubles.

Naturally, the rate for different programs is different. However, for the convenience of comparison, suppose that the percentage is the same and is 12% per annum (1% per month) For example, suppose that interest is calculated monthly on the last day of the month. The term for which funds are allocated, in our case, will be 3 months.

Comparative characteristic of interest accrual for deposits with and without capitalization:

The example shows that investing in a deposit with capitalization, the investor will receive more income. In our example, the difference was only 30 rubles.

However, it should be borne in mind that in practice, investors invest a much larger amount. Moreover, such short terms are rarely used, and the longer the placement period, the more significant the difference in income. We wrote more about how and where to invest money in a separate article of our magazine - we recommend that you carefully read it.

Terms of capitalization of interest on deposits

2. How often can capitalization of interest on a deposit account be carried out?

The presence or absence of capitalization for a particular deposit is established by its conditions, which are confirmed by the concluded agreement. The same can be said about the periodicity of capitalization, which may be different.

Most often, the regularity of capitalization is as follows:

• 1 per day;
• every week;
• monthly;
• once a quarter;
• Once every six months;
• annually.

To understand what frequency of capitalization is the most profitable, it is best to carry out calculations that will allow you to see firsthand the result.

for examplelet's say a deposit is made 100 000 rubles for six months. At the same time, for ease of calculation, we will take the rate for 12% in year (1% monthly).

The calculation result is presented in the table.

Comparison table of deposits with different periodicity of capitalization:

The above calculations allow us to understand that the greatest income brings interest capitalization with maximum regularity.

Instructions for choosing a deposit with replenishment and capitalization of interest

3. How to choose a contribution with capitalization and replenishment - a step-by-step guide for beginners

From the previous paragraphs of the article it becomes clear what the essence and benefits are capitalization. However, today in the market there are a huge number of banks with different conditions and rates. Anyone who chooses the best contribution for the first time may be confused.

Therefore, we give below step-by-step guide optional deposit with capitalization of interest for beginners.

Stage 1. Choosing a Bank

Prior to the development of Internet technologies, the issue of choosing a bank to conclude a deposit agreement was not so acute. Traditionally, citizens were sent to a branch of a credit institution located in the immediate vicinity of their home or place of work.

Today, thanks to the opportunity enter into a contract in online mode, depositors easily cooperate with banks that do not even have branches in the city where the citizen resides.

One side this approach significantly increases the offer, that is, investors can choose the best option from more conditions.

However a huge choice leads to the fact that beginners have their eyes widen. In such a situation, making the right decision becomes much more difficult.

Opening a deposit in a bank in the neighborhood, you can independently evaluate the competence of employees. The location and quality of repairs in the office also indicate the reputation of the credit institution. In addition, collecting real, genuine reviews in this case is much easier than when concluding an agreement online.

Experts recommend, choosing a bank, first of all pay attention to it rating. It’s worth a visit Bank of Russia Internet portal. Information about all parameters of credit organizations is collected here. In addition, it is on this site that you can find data on banks that have any problems.

Naturally, it is not worth carrying funds to institutions with a dubious reputation. even in cases where they are involved in deposit insurance system. Invested money will certainly be returned, but interest during the bankruptcy procedure and making payments to depositors will be lost.

Only after some of the most interesting banks are selected can we begin to analyze and compare the conditions for deposits.

Stage 2. Analysis of conditions on deposits

Having determined what requirements a depositor presents for deposits, one should carefully study the conditions of programs that fit these criteria.

Most often, investors pay attention to the following parameters:

• bid;
• term;
• minimum amount.

Another important criterion is the possibility of replenish deposit or partially remove money from him without interest loss. These parameters increase the mobility of funds in case of their placement for a long period.

In other words, the investor can save money by regularly making additional contributions on the contribution. At the same time, it is important to note that often banks set the minimum size for such replenishment.

On the other hand, it’s not easy to predict when money will be needed in the long run. Therefore, it is advantageous to place funds on terms that allow partial withdrawal.

Worth keeping in mind, with a deposit with the possibility of partial withdrawal of funds if necessary, you can take a certain amount without terminating the agreement. Banks usually set such deposits. minimum balance on the deposit account, which must be on it during the entire term of the contract.

When choosing deposits subject to capitalization, it is important to pay attention to the regularity of its holding.

Stage 3. Calculation of the effective rate

When choosing a deposit from several possible options, you should not compare the rates indicated in the conditions, but effective. They provide the opportunity to conduct a correct analysis of the total real income from the moment of conclusion of the contract to its closure.

In cases where there is a capitalization parameter in the conditions of the deposit effective rateallows you to take into account interest on interest.

Financiers suggest determining the effective rate by the following formula:

where:

• The EU - effective rate;
• FROM - interest rate on the deposit specified in its terms;
• N - shows how many times capitalization is carried out during the year.

Consider the calculation of the effective rate by example.

For example, deposit conditions stipulate a rate 12% per annum with monthly capitalization. Substituting this data in the formula, we get:

Thus, capitalization in the considered case leads to an increase in the annual rate more than 0.5 percent. By placing funds at 12% per annum with a monthly capitalization, the investor will annually receive passive income in the amount of 12,68% of the amount deposited.

Not everyone knows how to use an engineering calculator, which allows you to raise a number to any degree. Therefore, we recommend using special online calculators.

Do not forget that income is also influenced by making additional contributionswhich increase the amount of the contribution. Naturally, in this case, the amount of accrued and capitalized interest increases.

The opposite is also true - a partial withdrawal of funds from the account leads to a decrease in income.

Stage 4. Analysis and comparison of the data obtained during the calculation

Using the formula described above, it is necessary to calculate the effective rate on all selected deposits.

By analyzing other criteria and comparing the calculation results, one can make the right choice in favor of one of the deposits.

When comparing deposits, the following are usually considered:

1. Possible term of the contract;
2. Availability and frequency of capitalization;
3. Effective bet size;
4. The possibility of replenishment, as well as partial withdrawal;
5. The presence or absence of a prolongation condition.

Stage 5. Choosing the best option for investing

Most often, citizens decide to conclude a deposit agreement with the bank in order to increase funds. Therefore, it is the income received that will prevail when comparing several deposits and choosing one. It should be remembered that you will have to pay on income from the deposit tax.

It's important to know! Today Personal income tax not charged on all profits, but only from that part, which is calculated as the difference between the interest on the deposit and the refinancing rate increased by 5 points. In this case, in favor of the budget will be transferred 35%.

Consider a similar situation by example.

Example of calculating the amount of personal income tax

Since April 28, 2017 in Russia refinancing rateequal to 9,25%. The investor decides to invest his 100 000 rubles under 16% per annum.

In this case, the tax amount is calculated as follows:

1. Taxable interest = (16 - (9,25 + 5)) = 1,75%
2. Taxable amount = 100 000 * 1,75% = 1 750 rubles
3. Personal income tax = 1 750 * 35% = 612,50 rubles

In other words, the contributor instead of the promised 16 000 rubles in a year will receive 15 387 rubles 50 kopecks.

Thus, even with today's variety of deposit proposals, it is quite possible to choose the best one. For this important take your time, make all the necessary calculations and compare the results.

What does deposit extension mean? Concept overview + conditions for extending a deposit at a bank

4. What is the extension of the contribution and on what conditions is it provided

When a customer deposits money between a depositor and a bank, an appropriate contract. It establishes the terms of cooperation between these parties, including the period for which the money will be placed.

Traditionally, the minimum deposit period is 3 months. But there are banks ready to conclude an agreement for the period from 30 days. The maximum term in this case is most often equal to 1-2 years. In addition to the length of the period for which the deposit is placed, the agreement must indicate whether there is a selected deposit prolongation.

Deposit extension - This is an extension of the term the depositor's funds are in the bank account, which implies the accrual of interest after the main term of the contract ends.

There are 2 types of prolongation:

1. Non-automatic. If the agreement does not contain a reference to prolongation, the depositor will have to contact the bank at the end of the deposit term. There are two options for the development of events: take own funds or enter into a new contract.
2. Automatic. This extension is an extension of the deposit period without conclusion of a new agreement. It turns out that the client does not have to go to the bank if he does not plan to withdraw his funds. Traditionally, the number of automatic extensions is unlimited. If, however, several are allowed under the terms of the deposit, this is necessarily specified in the contract.

It turns out that an important difference between automatic and non-automatic prolongation is the lack of the need to conclude a new deposit agreement to extend its term.

In the case of automatic prolongation, the most important parameter that concerns any investor is size new interest rate. Already at the time of conclusion of the contract, it is important to carefully study it, because the interest rate must necessarily have a separate item.

Very rarely, a new deposit rate is kept at the same level as before. This is primarily due to the tendency to lower interest rates on deposits in Russia.

Should pay attentionthat most often with automatic prolongation the percentage for a new term is set at the level that is currently operating under the same program. However, in some cases, the same deposit in the bank no longer exists. In this case, most likely, the money will be transferred to similar contribution.

Important to keep in mind, that in the absence of automatic prolongation, interest will not be accrued at all, or a rate will be set at the level of the demand account. Therefore, ideally, regardless of the presence and absence of automatic prolongation, on the day the deposit term expires, you should contact the bank in which it is open.

It is important to understand not only whether or not extension is intended for a specific contribution, but also on what conditions it will be implemented. The most important of them are described below.

Condition 1. Duration of extension

Most often, the deposit agreement is extended for the same period for which it was originally concluded.

For instancewhen making a deposit on 12 months for the first time, it will be renewed subsequently for the same number of months.

The investor must understand that in some cases the term of the contract after the extension may differ from the original. Such a condition will be mandatory fixed in the contract.

Condition 2. Start date of the next deposit period

Traditionally, the effect of the new deposit period begins the day after the previous.

In other wordsif the contribution ends 1 August, but its owner will not come to the bank, already from 2 August will begin the action of a new period.

But do not forget that here there is a reservation on the conditions of the deposit. That is, this rule is valid, unless otherwise specified in the contract.

Condition 3. Change in interest rate when prolonging a deposit agreement

When prolonging the contract, it is usually established new interest rate. Most often, it is equated to one that acts on the same contribution at the moment.

To know at what percentage the funds will now be allocated, you should pay attention to the information contained on the bank’s website, or call the hotline. In any case, the agreement must contain information about the percentage after the extension.

Condition 4. Constancy of the new rate

After the deposit is prolonged, during the renewal period the rate NOT will change.

That is, when extending the deposit for a year, during this period the percentage will be constant. The rate will change again only in case of another extension.

Condition 5. Accrual of interest to the deposit amount

If the depositor does not withdraw interest during the term of the deposit or at the end of the deposit, the income is capitalized upon prolongation. It turns out that during the new term, interest will be charged on the increased amount, which consists of initially invested funds and accrued income.

Thus, absolutely all prolongation conditions are described in detail in bank deposit agreement. It is important to carefully study the terms of this agreement, otherwise you may suddenly find yourself in a difficult situation.

Consider 2 common cases:

Case 1. The deposit term has expired, but the depositor could not visit the bank on time.

As a result, a few months later, when he turned to a credit organization, he found out that interest was accrued from the moment of graduation at the demand ratewhich is equal to everything 0,01% This is due to the lack of conditions for automatic prolongation. I had to conclude a new agreement, but no one will accrue interest from the moment the deposit ends.

Case 2. There was a condition on automatic prolongation in the contract, therefore the depositor decided not to go to the bank at the end of his term.

However, he did not pay attention to the fact that the extension is carried out under the new rate, which is currently in force in the credit organization. As a result, the percentage was reduced. At the same time, it was possible to place funds at a higher rate in another bank. It turns out that the investor again missed part of the potential income.

Instructions for the extension of the deposit agreement

5. How to prolong a deposit in the bank - 5 simple steps for beginners

It is useful for beginning investors to know how deposit extension. First of all, it’s worth carefully study the terms of the contract. If it contains an item on availability automatic prolongation, you must carefully read its terms. If they are satisfied with the depositor, there is nothing to do.

In the absence of automatic prolongation or if its conditions are not suitable for the investor, a number of actions will have to be taken.

Below is given step-by-step instructionwith which the extension of the deposit will not cause any difficulties for the depositor.

Step 1. Study the contract

Even when depositing funds, you should carefully study the agreement regarding the terms of prolongation. It is useful to do this again when approaching the end of the term in order to recall all the nuances.

Important to remember, that most often during prolongation, the rate changes to the one that is in effect at the bank at the time the deposit ends. Therefore, it is useful to study market offers to make sure that the credit institution still offers favorable interest.

Do not forget that after the extension, termination of the contract before the end of the new term threatens with a loss of income from the moment of renewal.

Concerning important thoroughly analyze the financial situation. If funds may be needed earlier than the deposit term after renewal, it makes sense to conclude another contract for a shorter period.

Step 2. Visit to the bank office

Visit the branch of a credit organization in 2 cases:

1. if the terms of the deposit do not provide for extension;
2. if the conditions for extending the term of the depositor are not satisfied.

At the office, you should contact a bank employee to get a detailed consultation.

Step 3. Consultation

When leaving for a consultation, the investor should have a clear idea of ​​what should be learned from the employee.

During the consultation, you need to find out:

• whether there is an automatic extension and what are its conditions for the current contribution;
• Are there suitable alternative investment conditions, if so, what are their conditions.

During the consultation, it is important to ask the employee to talk about all possible investment options. On our site you can also find out where to invest money to receive monthly income.

In addition, it will be useful if the consultant demonstrates the calculation of the estimated income for all suitable schemes.

Step 4. Agree on investment conditions

After all possible schemes have been described, you can choose the most suitable method for extending the deposit period.

There are 2 options:

Option 1. The client decides to roll over the deposit automatically. In this case, you must ask to print the contract for a new term.

Option 2 It was decided to draw up a deposit on other conditions. It is important to carefully clarify absolutely all the nuances. After that, the old contract will have to be terminated, the funds transferred to a new account and an updated agreement signed.

Step 5. Confirmation of intention to extend the deposit

If the depositor decides to extend the current deposit, in case of visiting the office, this intention will have to be confirmed. To do this, write statement.

This can be done directly at the office. Next will be printed new contract, which you will have to familiarize yourself with, and then sign it.

Thus, there is nothing complicated in prolonging the contribution. To avoid problems, it’s enough carefully to study the presented instruction and to precisely observe it.

6. In which banks can deposits be made with capitalization, replenishment and prolongation - an overview of the TOP-3 of large banks

In the financial market of Russia there are a fairly large number of banks that offer deposits with capitalization, replenishment, as well as prolongation.

Below are presented 3 credit organizations with profitable deposits. They have programs with all the parameters considered, but before opening a deposit, in any case, you should contact the bank for detailed advice. Only in the office will they be able to tell in detail about all the programs that are currently operating in a credit organization.

1) Sberbank of Russia

For many years, millions of Russian citizens trust their money Sberbank. This credit institution is the oldest in our country.

Today, among the deposits with automatic prolongation, the most popular is deposit Good year. On it, the bank offers a bet from 7,4 before 8% APR. The final amount is determined depending on the amount deposited on the deposit.

The minimum term for the deposit in question is 3 of the month. Amount starts from 100 000 rubles. Interest is charged at the end of the contract term. You can open a deposit, not only by contacting to the office, but also on the bank's website in online mode.

2) Ural Bank for Reconstruction and Development

In the 27 years since its foundation UBRD, the bank managed to enter 30 the largest credit organizations in Russia.

The state trusts the Ural bank, it is allowed to open accounts here housing and communal services companies, strategic enterprisesas well as store retirement savings.

Bank branches are located in 43 Russian regions, where you can open a deposit with a rate before 11% APR. When making a deposit on the bank’s website, you can additionally receive 1%.

3) VTB

VTB Bank It is part of an international group operating in the financial market. Today, in branches located in 72 Russian regions, you can open deposits with a rate 5,75- 7,85% APR.

To compare the conditions of various bank deposits and choose the best of them, it is not necessary to go to the bank branch. Enough to do hotline call. There is another option - to visit VTB website.

If not all issues are resolved, you can order directly on the Internet resource back call. To do this, just fill out the special form.

Often, investors doubt which bank to prefer. Experts advise using a special questionnaire that will help make a decision.

Questionnaire for a comparative assessment of credit organizations according to various characteristics:

On this questionnaire, all selected banks should be evaluated. After this, preference should be given to the one who will score the most points.

We also advise you to read our article on which bank is better to open a deposit at a high interest rate.

7. How not to make mistakes, opening a contribution with capitalization of interest - 3 most important advice of specialists

To draw up a contribution with maximum income, you should familiarize yourself with the advice from specialists. They will help to avoid most mistakes.

Tip 1. You should invest only in reliable banks.

Most depositors are chasing the maximum percentage and are not always right.

Worth considering! It is much more important to pay attention to the reliability of the bank than to the percentage on the deposit.

Of course, the deposit insurance system, which is mandatory in Russia today, guarantees a refund in the event of a bank collapse. However interest accrual from the moment of deprivation of the credit organization license is terminated.

It turns out that the investor will lose income, because the payment of the sum insured is not immediate.

Tip 2. You should definitely calculate the effective bid yourself

Many investors, as you know, are bribed by attractive advertising, which promises huge interest on the deposit. But do not rush.

Ideal option - before visiting a bank branch, you should calculate the income that will be received when depositing funds on the conditions under consideration. This can be done based on formulasgiven in this article, or using special online calculators.

This approach allows you to know what you can count on when contacting the bank. In addition, it will be possible to compare your own result with that of a bank specialist.

Tip 3. Do not forget to evaluate your own financial situation.

When deciding how much and for how long to open a deposit, the depositor must carefully evaluate his own financial situation.

Important to understandthat most deposits do not provide for spending transactions. Moreover, early termination leads to a lack of interest. Therefore, it is important to choose a term with maximum responsibility.

Having listened to these tips, each novice investor will be able to easily open a profitable deposit.

8. FAQ - frequently asked questions and answers to them

According to tradition, at the end of the publication we will answer questions that most often arise from contributors.

Question 1. Where can I find an online calculator for calculating the parameters of deposits with capitalization and replenishment?

Depending on why the calculations are carried out, there are several options for calculators that are used to calculate deposits.

We offer to use our deposit calculator, which will help to calculate the interest on a deposit online:

Types of online calculators for calculating deposit parameters:

1. Calculators on the websites of banks offering to open a deposit. You can find them on the deposit selection page. When calculating with such a calculator, you will have to enter a minimum of data - the amount, deposit term, date of issueas well as planned replenishment (if provided). The rate and other deposit parameters are automatically configured.
2. Calculators located on thematic (financial) sites. This option is suitable for those investors who have not yet decided which bank to carry their funds to. Here you can find useful information about deposits offered by various credit organizations. Using such calculators, the depositor must enter quite a few parameters, because the characteristics of deposits in each bank are different. It is necessary to indicate, including capitalization and its frequency.
3. Calculator sites.Recently growing in popularity specialized internet resources, which are deposit calculators with the maximum set of useful functions. In addition to the characteristics used in other calculators, here are used: bet type selection (fixed or floating); possibility of replenishment and withdrawal; tax accounting. In addition, a detailed description of all the functions used is given here. This approach leads to the fact that the calculation is as accurate and detailed as possible.

An example of an online deposit calculator with capitalization and replenishment

When choosing a deposit calculator online, it should be understood that in any program for settlements, errors. They differ significantly for each type of calculator and can occur for various reasons.

The main causes of calculation errors when using the online calculator:

• the simplest programs do not take into account many parameters - income taxation, commissions and others;
• some calculators do not allow for a change in income in the case of making additional contributions or withdrawing part of the deposit amount;
• banks have a different attitude to the calculation of interest if the end date falls on a day off.

All of the above circumstances lead to errors. It should be borne in mind that for simple programs it can be quite large.

Take note! The use of professional calculators in the calculations minimizes errors. They usually do not exceed one percent.

Question 2. Does the investor have the right to refuse to prolong the deposit and what will have to be done for this?

Naturally, the depositor has every right to refuse further relations with the bank in which he has ended the deposit.

However, not everyone knows what actions should be taken so that problems with obtaining funds do not arise, and interest is not lost. Therefore, we provide detailed step-by-step instructions below.

Step 1. Visit the bank office

If the terms of the contract provide automatic prolongation of deposit, but the depositor decided to take his money from the bank, you have to go to the bank. At first, it’s enough to consult why contact to the officecall to the hotline or chat with a consultant on the site.

Most often, in order to refuse to prolong a deposit, one has to contact a branch of a credit organization. But exactly the need for this can only be confirmed by employees of a particular bank.

Step 2. Application

In the branch of the credit organization, you will likely have to fill out written statement. The sample of this document is different in each bank, so it makes no sense to draw it up in advance.

Step 3. Termination of the deposit agreement

Based on a written statement deposit agreement regardless of whether it was prolonged, will be terminated.

It's important to know! A statement is necessary to confirm the intention of the depositor to withdraw his own funds.

Step 4. Getting money

The last step remains only to withdraw funds. You can get them in cash or transfer to another account, details of which are indicated in the application.

9. Conclusion + video on the topic

In this way, capitalization increases the level of profitability of the deposit. Prolongation contract is also a useful option. It is important not only to know what these concepts mean, but also to understand what their features are.

Having studied the tips and instructions given in the article, everyone will be able to choose the most profitable contribution in accordance with their preferences.

We also advise you to watch a video about what compound interest is (% taking into account reinvestment or capitalization) and how to calculate them:

That’s all with us. We wish our readers the maximum return on deposits. At the same time, it is important that not a single penny is lost.

The team of "Rich Pro" magazine is waiting for comments on the topic of publication, as well as with great pleasure to answer all questions!

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