Saving is impositing of some money amount into bank, where the bank pays out the interest on it. It is regulated by the contract of financial deposit, also called a bank deposit agreement, or a bank investment contract ( BCI). All listings that bank proclaim must be according to rules of client’s notification. The bank must inform all clients about eventuall fees and costs that can appear in the process of saving, but usually, there is no any costs when clients givetheir money into savings.
„ A vista“ savings are those when client can raise money any time, and the interest is calculated by the time that money has been on the account. The interest is being calculated once a year, and that is time when it is payed out. Some banks doesn’t pay any interest for such savings.
Long term savings are those when client obliges forwardly that a certain amount will be held on client’s account for exact time, which can be from one to 36 months, sometimes even more. More days delayed, the payout will be larger, and interest too. Interest can be different according to deposit amount, so if the deposit is bigger, interest is bigger too. For such savings there is prescribed mimimal amount that can be deposited, and it depends on bank’s code.
The interest, in this case, is calculated and payed out after the term date expires, and in some cases before that date. If the client raise the money before agreed deadline. The interest is being calculated lower that agreed, mostly the same interest as in „ a vista“ savings. Automatic re-depositing is possible in long term savings, and it is done after first deadline is achieved. In such case, the interest that is gathered since, usually sums with the deposit and it becomes the new deposit amount.
New depositing will be calculated with the interest that is currently in force. According to current bank codes in the moment of re-depositing. Usual process of re-depositing includes timely notification to the client, at least 15 days before first deadline is achieved. It must contain all terms and conditions about new interest rate, but also, client has the right to cancel the contract 30 days since the notification is received, without any expenses.
Money deposit contact
On the basis of contract about money deposit, the bank opens an account which is used for all claims and liabilities about deposit, except for those which are ommited by verbal agreement. Bank’s duty is to inform the client about any change in account balance. Bank also to send yearly reports about it to the client. If the client has more savings accounts in one bank, every account is treated separately from each other.
Every bank is ought to issue a passbook which is used to note all payments and withdrawals. All passbook notes must be certified by bank stamp, and the signature of authorized person from the bank, and only that way those are confirmed actions. Savings passbook can be issued on the name of client or it can be signed to one who come to the bank to raise the money.