The characteristics of a deposit account

The characteristics of a deposit account

A deposit account is nothing more than a product that is different from the traditional bank account. From it you can usually do a few pick-up and payment of cash and checks. One of the main features is that you cannot do other important tasks such as wire transfers, checks, withdrawal with credit card on an ATM and other services of the traditional account. Let us see in detail what the deposit account and its characteristics are.

A deposit account is thus a sort of bank account that, despite the limits, can be used solely to make money from the money you deposited. The majority of deposit accounts have no operating costs and offer a higher interest rate than traditional checking accounts.

Keep your capital in and let it increase

Keep your capital in and let it increase

Upon subscription, the obligation that applies is that the person concerned should have a normal current account with another bank or the institution where you are opening the deposit account and all transactions have to be done by and for the account. Another characteristic that is rather limiting is that the account does not allow you to withdraw an amount greater than the capital, and for this reason guarantees are not required. However, if you open a deposit account, you establish different relationships with the bank you can get various discounts. In fact, some banks offer favorable conditions for as long as you constraint your initial capital. With this benefit, investors can always withdraw from the capital without waiting for the natural maturity of the bond, but in the event of early withdrawal no longer perceives some interest. There are other banks that offer promotions that have certain advantages to the investor. For this reason you should search for information about different banks to find the best deal for you.

Like every investment transactions, including deposit accounts,they may have (if you opt for the solution of the constraint of capital) their risks. However, these are limited and also any losses are often unimportant during the investment period. However, the deposit accounts are monitored by experts and 90% of them have a good outcome especially in the long term so they could be good way for you to increase your starting capital and make a profit out of it.

By +Nikos Kontorigas

About Nikos Kontorigas

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