Credit institutions themselves are also involved in investments. Investments in high-yield assets may become a reason for increasing interest rates on deposits.
To estimate how much you will earn in the end, you need to pay attention not only to the percentage, but also to the possibility of capitalization.
Capitalization is the addition of accrued interest to the principal amount of the deposit. The more often capitalization occurs, the more profitable the deposit. Let's look at two examples:
You invest 1,000,000 ₽ for a year at 11% without capitalization. At the end, you will earn 110,000 ₽.
The conditions are the same, but monthly singapore mobile database capitalization is provided. As a result, you will earn 115,726 ₽. The benefit will be more than 5,726 ₽.
Earnings with daily capitalization are even higher - 116,267 ₽.
The capitalized part can not only be left on the account, but also withdrawn. This way you provide yourself with a small passive income that comes monthly. But it is still more profitable to add this amount to the body of the deposit.
Can a bank change the terms unilaterally?
By law, credit institutions must follow the agreement with the depositor. Even if the interest accrual scheme is floating, it still operates according to pre-established rules that cannot be violated.
But the client may unintentionally violate the terms of the agreement, which will lead to the loss of part of the profit. For example, you have a deposit with flexible management, which allows you to replenish the account and withdraw money without changing the interest rate. But at the same time, the minimum balance is set at 30,000 ₽. If you accidentally lower the balance to 29,999 ₽, part of the accumulated interest may be lost.
Too high an interest rate is not always a good thing
When inflation is high, you want to save your savings, and therefore all offers with high yields seem very attractive. But when the interest rate is significantly higher than the KS, this should raise suspicion, especially if we are talking about a little-known financial institution.