How to deposit wisely, to get the money’s worth
Is it better to save money in dollars or soms? What is capitalization? Is it possible to make money on a deposit quickly?
Answers to these and many other questions can be found in our partner material with @24_kg
12:00, February 25, 2018, Bishkek – 24.kg news agency, Tatyana KUDRYAVTSEVA
Economists often advice to save at least a tenth of your salary for a rainy day. But it’s one thing to just save, and the other thing is to make money on it. Correspondent of “24.kg” news agency talked with employees of Bai Tushum Bank to learn how to deposit money and get the money’s worth.
- Is it better to save money in dollars or soms?
- Everything depends on what you are saving for. If you are going on a vacation or planning to send your child abroad, then save in dollars. If you are planning a major purchase in soms, then save up in soms. Once you decide about the currency, decide how much you want to save and for how long. And the last step is to choose a deposit.
In any case, it’s worth sticking to a simple rule – do not save in one currency. It is that simple. If you save in different currencies, then there is smaller risk of losing money in case of a sharp fall in the exchange rate.
- Which deposits are the most profitable?
- There are a lot of deposit products in the market. And each one meets different goals. If you want to receive the maximum income on interest rates of the bank, then you should deposit for the maximum period without or with the possibility of replenishment. As a rule, this is where the highest rates are.
- What is capitalization?
Let’s take “Your capital” deposit of Bai-Tushum bank as an example. If you open this deposit, the amount of accrued interest will increase the amount of deposit each month. As a result this will allow increasing the total amount of income at the end of term.
- And what deposit is it better to use, if you have a small business and you need money from time to time?
For small and medium businesses the deposits which provide for possibility of partial withdrawal are suitable. For example, you deposit your free funds on Bai Tushum’s “Exclusive” deposit. As a result, there is additional interest income on the amount of temporarily available money. More interest will be accrued on it than on demand deposit. When you need some money, you can take them without losing the accrued interest, saving only the minimum balance of 5 thousand soms or 100 dollars on the deposit.
- Is it possible to earn quickly on deposits?
Yes, it is. “Bai-Tushum Profitable” deposit has been launched in the bank. It allows in a short period of time, for example in 6-9 months, receiving maximum interest income. When you allocate for 6 months, income will be 7 percent, for nine months – 9 percent.
- Is it definitely profitable?
Yes. Let’s assume that you have money that you cannot deposit for a long time, for example, for two years. But at the same time you are not going to spend them in the near future – you are saving for a major purchase in the future. “Profitable” deposit will be useful in exactly such cases. Money should work. For example, if you have 100 thousand soms, then your interest income in 6 months will be about 3.5 thousand soms. In the meantime you could make your purchase and earn some money.
- Is it possible to save up for an apartment or a car with the help of deposit?
Yes, of course. Most of the clients do so. The most important is to set a goal, define the necessary amount and amount of money that you can save each month, and follow your plan in a disciplined manner.
In order to expedite the timing of real estate purchase, you can consider the possibility of accumulating an initial payment, for example, 30 percent of the cost of an apartment, and to take the remaining 70 percent of the cost of an apartment in the bank in the form of a loan (mortgage). Employees of Bai Tushum Bank will calculate and offer you several repayment schedules, which will be most convenient for you, based on your income.
- Deposits are necessary only for those who have a big salary and who throw some money around?
It is a myth. The minimum deposit amount in “Bai-Tushum” bank is 1 thousand soms. And the amount of the subsequent replenishment is 500 soms. For example, if within 9 months you replenish the deposit for 2 thousand soms, then in a year your amount will be, for example, on “Bai-Tushum Convenient” deposit more than 19 thousand soms. You can purchase any household appliances for this amount of money, starting with a TV, a refrigerator, furniture or just make repairs in the house. It is also convenient with the fact that you can replenish the deposit anytime through “Mobilnik” payment terminal.
- What kind of pitfalls there might be?
Absolutely all depositing conditions are reflected in agreement. The National bank strictly monitors it. But before signing an agreement, you should carefully read it. If you have any questions when signing an agreement, you must necessarily discuss them with a bank’s specialist. It is important to pay attention to the terms of early termination. It can be said that there are no pitfalls, it is just necessary to clarify all conditions when depositing money.
- If I take money from deposit ahead of time, I won’t earn anything?
It depends on the conditions of a deposit. For example, according to the “Grow big” deposit conditions, in case of early termination, the bank pays 50 percent of the amount of the commission. If we talk about the deposit “Exclusive”, then you can withdraw money from the deposit during the term, leaving a minimal amount. In the meantime without losing the accrued income. If in the deposit agreement it is stated that in case of early termination, interest is paid according to demand deposit rate, then you should clarify the rate amount. In most cases this rate is zero.