Deposits with monthly replenishment and capitalization. Deposits with replenishment and capitalization

Today I want to talk about deposits with capitalization. Many banks present deposits with capitalization as almost an ideal investment instrument, and for some people the phrase “compound interest” immediately evokes the idea that the best way to earn money is on such a deposit. In fact, in most cases this is not the case, and capitalized deposits are a common type of bank deposits, and the profitability on them is far from the highest. But first things first…

Deposits with interest capitalization- This bank deposits, interest on which, after accrual, is added to the deposit amount. Thus, after each accrual of interest, the deposit amount increases slightly, as a result, “interest on interest” is accrued. This phenomenon is called “compound interest.”

Formula compound interest for deposit.

Let's look at how the compound interest formula works using an example.

Let's say you open a deposit with a capitalization of 1000 den. units for a period of 1 year at 10% per annum with monthly capitalization percent.

% = 0,1*1/12 = 0,0083

Now let's determine how much money you will receive at the end deposit agreement using the compound interest formula for a deposit with capitalization:

SUM = 1000 den. units * (1 + 0.0083) 12 = 1104.27 den. units

Thus, your net interest income will be:

1104.27 – 1000 = 104.27 den. units or 10.43% of the deposit amount.

In most cases, the bank will offer you its deposit calculator for a deposit with capitalization, which will perform similar calculations with the click of one button, however, you can always “check” it by making an independent calculation using the compound interest formula. To do this, you need to know exactly the interest capitalization period used by the bank, the validity period of the deposit, the number of days in a year, and whether interest is accrued on the first and last day of the deposit agreement. These parameters in different banks may be different, so there may be an insignificant difference in the calculations.

From our example it is clear that if the investor placed funds on a regular deposit without capitalization at the same rate, he would receive 10% per annum or exactly 100 den. units from 1000 den. units And when placed on a deposit with capitalization, its profitability at a rate of 10% per annum will be 10.43% or 104.27 den. units from 1000 den. units (0.43% or 4.27 den. units more).

It would seem wonderful, even if it’s a small thing, but it’s nice (and even with a substantial deposit amount or more high rate it wouldn't be such a small thing). But it's not that simple. The fact is that rates on deposits with capitalization in banks are usually lower than on classic deposits with interest paid monthly or at the end of the term. And even a difference of 1% per annum makes capitalized deposits less profitable compared to traditional bank deposits.

Let's say, in our example, the bank would offer not 10% per annum on a classic deposit, but 11% or 12% per annum, which would allow the depositor to earn more on the deposit, despite the fact that there is a compound interest rate here and a simple one there.

This resulting difference of 0.43% is not a constant value and can change based on the interest rate on the deposit with capitalization, the conditions for capitalization of interest and the amount placed on the deposit. Moreover, the higher the interest rate on the deposit, the greater the difference will be. Thus, the actual profitability of the deposit with capitalization must be calculated each time using the compound interest formula or using a deposit calculator, based on the specific conditions of the deposit.

To determine which is more profitable: a classic deposit or a deposit with capitalization, it is necessary to calculate the actual return on the deposit in in monetary terms for each case (the compound interest formula will help you with this), and choose the deposit whose profitability will be higher.

In conclusion, I want to offer you a little trick. The fact is that any investor can independently make compound interest for himself if he places a deposit with monthly interest payments and the possibility of replenishment. To do this, you need to receive interest monthly and replenish the deposit amount with it. Taking into account the fact that the rate on such a classic deposit will most likely be higher, the investor will benefit:

1. The depositor has the opportunity to choose: capitalize the interest (replenish the deposit with it), use it for other purposes, or partially replenish the deposit with interest.

2. In the case of replenishing the deposit amount with interest, the investor, in fact, receives the same compound interest as on a deposit with capitalization.

3. Interest on a classic deposit is usually higher than on a deposit with capitalization. Thus, the investor receives a compound interest deposit with a higher rate.

4. In some banks, the process of replenishing the deposit amount with interest can be automated by issuing a permanent payment order. True, this service may be paid.

Thus, the investor can provide himself with a compound interest on any deposit with replenishment, which in financially it will be more profitable for him than opening a deposit with interest capitalization.

Basically, that's all I wanted to say about deposits with capitalization. Do not forget that the compound interest formula will always help you determine the actual profitability of a deposit with capitalization and compare it with the profitability of other, traditional deposits, in order.

I wish you success in managing your personal finances! See you again at !

Conditions for calculating interest

Interest is calculated monthly. Interest rate depends on the amount, currency and term of the deposit. For pensioners there are special conditions (see below).

At your choice, the accrued interest can be:

Added to the deposit amount, increasing income in the following periods.
Transfer to a Sberbank card account.

Increase in interest rate

The bet increases automatically when the amount in your account reaches the next threshold in the betting table.

Conditions for early termination

If you need money ahead of schedule When your deposit ends, you can always receive them.
At early termination income will be accrued without taking into account the monthly capitalization of interest.
The early termination rate for deposits opened for a period of up to 6 months is 0.01% per annum.

Early termination rate for deposits opened for a period of more than 6 months:

	If you withdraw the deposit in the first 6 months (main or extended term)	If you withdraw your deposit after the first 6 months
If the amount does not exceed maximum amount contribution*	0.01% per annum	2/3 of the interest rate on the deposit
If the amount is higher than the maximum deposit amount*	0.01% per annum	For the main amount - 2/3 , for the difference between the deposit amount and the maximum amount - 1/3 of the interest rate on the deposit, valid on the date of its opening or extension

Prolongation conditions

Automatic prolongation is carried out on the terms and at the interest rate that are in effect for the “Replenish” and “Replenish Online” deposits on the date of prolongation.
The number of extensions is not limited

Special conditions

There is a maximum amount limit on the deposit*. If the deposit amount exceeds it, then interest is accrued on the difference between the actual and maximum amounts at a rate of 1/2 of the deposit rate in effect on the date of excess. Reduced rate applies from the day following the day when the excess occurred.
You can issue a power of attorney or make a testamentary disposition for the “Replenish” and “Replenish Online” deposits at the bank’s office.

* Maximum deposit amount - the deposit amount at the end of the day on the date of opening or prolongation of the deposit, increased by 10 times. For deposits for which the deposit amount at the end of the day of opening or prolongation is less than 100,000 ₽ / 5,000 $ / 5,000 €, the maximum amount is 1 million ₽ / 50,000 $ / 50,000 €.

Special conditions for pensioners

For pensioners, the maximum rate is set for the selected deposit period, regardless of the amount. At the same time, for deposits opened in Sberbank Online, the maximum rate for the selected period is set only for age pensioners - women over 55 years old and men over 60 years old.
If you have reached retirement age after opening a deposit, then its extension is carried out at the maximum interest rate for the selected period for this deposit.
For pensioners there is no limit on the maximum contribution amount.

Hello! In this article we will talk about compound interest in bank deposits, or in other words, about their capitalization.

Today you will learn:

What is capitalization of interest on a deposit;
How to independently calculate the profit on a deposit with capitalization;
How to choose the most favorable interest rate;
How to open an account with capitalization.

What is capitalization of a bank deposit

One of the most popular ways of saving money at all times and among all segments of the population is opening a bank debit account. But not everyone knows what capitalization of a deposit means and how to use it.

Almost every bank is ready to offer private clients two types of savings deposits:

Interest under the agreement is accrued to a separate account, where it is separately accumulated, and the amount of the main deposit remains unchanged.
Interest is added to the “body” of the deposit, thus increasing the amount for calculating further savings.

Capitalization of the deposit (or capitalization bank interest) – adding accrued interest on the deposit to the principal amount. For such additional amount In the future, interest is also accrued. This system is also called “compound interest on deposits”.

The amount of compound interest accrued increases with each capitalization period.

For example, let’s imagine how the amount of a deposit opened on June 5, 2017, with monthly capitalization at a rate of 7% per annum, will increase.

date	Account balance	Accrued interest (in rubles)	Deposit amount after capitalization
05.07.	50 000	288	50 288
05.08	50 288	299	50 587
05.09	50 587	301	50 887
05.10	50 887	293	51 180
05.11	51 180	304	51 484
05.12	51 484	296	51 781

Without capitalization, the contribution under the same conditions would change as follows:

date	Contribution body	Accrued interest (in rubles)	Total amount in account plus interest
05.07	50 000	288	50288
05.08	50 000	297	50585
05.09	50 000	297	50882
05.10	50 000	288	51170
05.11	50 000	297	51467
05.12	50 000	288	51755

As can be seen from the example, the total amount for six months is not much different for a deposit with and without capitalization. But if we are talking about long-term investments, then capitalization is beneficial. We will talk about ways to profit from compound interest next.

Advantages of deposits with capitalization

As we have already seen above, capitalization allows you to increase your deposit more effectively than standard interest calculation.

What are the benefits of capitalization for investors:

The deposit amount grows faster thanks to “compound interest”, and the growth rate is constantly increasing throughout the entire deposit period.
You can calculate capitalization without special knowledge of economics. The interest calculation system is transparent and accessible to everyone through special formulas and online calculators.
deposits with capitalization pay off under a long-term agreement. If the purpose of the deposit is to put free money to work, and it is possible to wait a few years, then such a deposit is a very affordable and simple solution to the problem.

Capitalization calculation

PV – initial deposit amount;
r – annual interest rate;
m – the number of interest accruals per year (for example, if capitalization occurs quarterly, m will be equal to 4);
n – number of years for which the deposit is opened.

It turns out that if we open a deposit for 150,000 rubles, at 7% per annum, with capitalization once a month, after 2 years we will receive: 150,000*(1+0.07/12) 12*2 = 172,335 rubles.

Another, more in-depth version of this formula: PV*(1+rj/100K) n, where the new variables are:

j – number of days in the period for which interest is calculated;
K – number of days in a year;
Degree n – the number of capitalizations throughout the entire contract.

Using the same initial data, we get: 150,000*(1+7*30/100*365) 24 = 172,335 rubles.

In fact, both of these formulas, like some others found in banks, are absolutely equivalent. The names of the variables may also differ, but the very principle of the relationship between the interest rate and the frequency of compounding remains unchanged.

These include:

Online calculators;
Banking calculator applications for smartphones;
Special deposit calculators for Windows.

Personal income tax and refinancing rate

When looking for the highest interest rate on a deposit, do not forget about the possible excess of the refinancing rate. If the deposit rate exceeds refinancing + 5%, then the difference exceeding the threshold will be withheld (35%).

For example, the deposit amount is 200,000 rubles, the deposit rate is 16% per annum. Refinancing rate – 10%.

16% > 15%, which means the bank will withhold personal income tax.

In one year, the profit on the deposit will be 32,000 rubles. Maximum income, tax-free– 30,000 rub. The difference between these values will be deducted 35%, in our example this is 700 rubles.

Terms of capitalization of deposits

The conditions for capitalization of each specific deposit are described in the agreement concluded between the bank and the client.

For example, capitalization can be carried out either once a day or a week, or once a year or six months. In Russia it is extremely difficult to find reliable deposits with capitalization more than once a month, so we can say that such a frequency exists only in theory.

Daily capitalization ensures the maximum growth rate of compound interest, and with it the deposit amount. But in Russian banks This frequency is almost never found.

The more often capitalization occurs, the greater the benefit the investor will receive. Let’s see this using the example of a deposit opened on July 1, 2017 for a year with an initial amount of 50,000 rubles, at 6% per annum.

Deposit amount as of date	Monthly capitalization	Quarterly capitalization	Capitalization every six months
01.08	50 255
01.09	50 511
01.10	50 760	50 756
01.11	51 019
01.12	51 270
01.01	51 532	51 524	51 512
01.02	51 794
01.03	52 033
01.04	52 298	52 286
01.05	52 556
01.06	52 823
01.07	53 084	53 068	53 045

Effective interest rate on deposit

This definition means a deposit rate that will give the same return on a deposit with and without capitalization. It is very important to be able to determine the effective interest rate in order to objectively compare offers from different banks and different tariffs.

It is clear that for two deposits with the same capitalization periods, the one with the higher interest rate will be the most profitable.

But if proposals differ not only in percentages, but also in terms, as well as in the presence or absence of capitalization, then it will be most convenient to bring them to the same denominator using the formula: (1+R/m) m -1, Where:

R – interest rate under the agreement;
m – number of capitalization periods per year.

Example. A year after opening a deposit of 150,000 rubles at 7% with monthly capitalization, we receive 150,000*(1+0.07/12) 12 = 160,785 rubles.

What should the interest rate be to increase the same amount over the year, but without capitalization? 160785/150000 = 1.0719-1 = 0.0719, or in other words, 7.2%.

Conclusion: in our example, a deposit with capitalization at 7% per annum is more profitable than a deposit at 7.1% without capitalization.

How to open a deposit with capitalization: step-by-step instructions

Opening a deposit with capitalization is quite simple. As they say, “any whim for your money.” Banks willingly accept citizens’ savings for storage, but do not always offer profitable terms. We will talk further about how to thoughtfully approach opening a deposit and avoid mistakes.

Stage 1. Selecting a bank.

Today, depositors have a truly wide choice of banks. Many progressive companies offer to make a deposit online, even for residents of other cities.

Registration and geographical accessibility of the bank have ceased to be significant parameters. Therefore, the choice of bank to open a deposit is now based on other characteristics.

These include:

Bank ratings;
Reviews about the institution;
His financial situation.

The Banks of Russia website (banki.ru) will help you choose - you can find a lot there useful information for each bank registered in the Russian Federation.

Not every bank provides deposit insurance. If the bank participates in state program insurance company and makes contributions to a special fund, then in the event of its closure or license revocation, clients will be returned their invested funds.

At the first stage, you can focus on several banks with the best reputation, and then begin to study their deposit offers.

Stage 2. Selecting a deposit.

When choosing a deposit, you need to compare several offers by:

Interest rates (the higher the better);
Capitalization periods (the more often the better);
The timing of the placement of funds (for how long are you willing to refuse to use your savings);
Currency of the deposit body and accrued interest (sometimes the main deposit remains in rubles, and interest is accrued in foreign currency according to the current exchange rate);
Availability of extension (extension of deposit term);
Opportunities for replenishment and withdrawal, early closure (replenished deposits can bring more more income, and for long-term investments it would not be superfluous to partial withdrawal funds without loss of interest).

We have previously mentioned the calculation of the effective interest rate, which allows us to give several different contributions to one denominator.

Let's consider another, slightly different version of this formula: (1+R/100/m) m/n -1.

We left the variable designations the same:

R – annual interest rate under the agreement;
m – number of capitalizations per year;
n – number of years.

Example. The actual interest on the deposit for a year with monthly capitalization at 6% per annum and an initial amount of 110,000 rubles will be equal to (1+6/100/12) 12/1 -1 = 1.062-1 = 6.2%

Stage 3. Opening an account.

When the bank and tariff are selected, you can take your savings with you and go to the bank. When determining the deposit amount, be careful and do not give all your capital to the bank.

Most plans do not allow painless early cash withdrawals.

The only documents you will need are a passport; all other papers are prepared at the bank. The list of documents can be clarified in advance at the bank itself, since each organization has the right to make its own changes to the procedure for registering a deposit.

The agreement with the bank must be carefully checked before signing:

Are your passport details correct?
Do the conditions, amount and procedure for calculating interest coincide with those previously agreed upon;
Can the bank independently change the interest rate;
Until what date is the contract valid and is there an automatic extension?

Now many banks offer the opportunity to open a deposit online. The conditions for such a service can be clarified on the bank’s website or from its operators.

To summarize, here are a few tips that will help beginners not get lost when opening a capitalized deposit:

Check the effective interest rate. What advertising and commercial offers call “profitable” is not always so in reality. We provided the formula by which the calculation can be made earlier in our article, but you can also use an online calculator.
Not that important high percent like bank reliability.
Read the contract carefully and pay attention to pitfalls. All kinds of commissions (for SMS notifications, for online banking), automatic extension of the deposit on unfavorable terms for you, and so on. Bank managers will not be willing to tell you everything themselves.
Objectively assess your financial capabilities. If capital is not needed in the next few years, it makes sense to enter into a long-term agreement with pleasant interest. If there is no such confidence, a safety net in the form of the possibility of early closure of the account without loss of interest will not hurt.

Top 7 banks with deposits with capitalization

In conclusion, we offer you a selection of banks offering best deposits with capitalization:

Ural Bank for Reconstruction and Development (UBRD). Founded in 1990, head office in Yekaterinburg. The maximum rate on deposits for individuals is 11%. All cash deposits insured.
Bank of Corporate Finance (BCF). Founded in 1993. Deposits of individuals and entrepreneurs participate in the insurance program. The deposit agreement can be terminated early after six months without losing interest.
Sberbank. The most famous and perhaps the most reliable bank. It is he who pays insurance on the deposits of bankrupt banks. Most of the shares of Sberbank belong to the state, which gives it such stability. Its branches can be found even in the smallest cities and villages of Russia.
Moscow credit bank . Founded in 1992. Initially, his activities were aimed exclusively at the capital and the region, but now, thanks to the Internet, the boundaries of his influence have expanded. Offers in rubles and in . You can monitor the status of your deposit using a special mobile application.
Bank opening". One of the largest private banks. Founded in 1993 as NOMOS-Bank, it was renamed Otkritie only in 2013. Deposits average 7-8%. There are deposits that you can open without visiting the office and track their status online.
VTB 24. A subsidiary of VTB Bank, founded in 2000. Interest rates up to 8%. The bank's website has a convenient calculator that allows you to quickly calculate the profit on each deposit.
Binbank. Founded in 1993, the head office is located in Moscow. On the bank’s website, you just need to select the deposit currency, amount and term, and the system itself will create a visual table of accrued interest on each deposit. There are also multi-currency tariffs.

This is an advantageous placement Money, in which interest is accrued not only on the original amount, but also on the amount received as income while the deposit is in the bank.

A bank deposit with monthly interest capitalization is often the most in a profitable way increasing savings. But, as in any matter, you need to know the rules effective accumulation. Moreover, the list financial services The placement of deposits is varied.

One of the main indicators is the time period, after which the amount from which income is accrued is recalculated. This could be one day, month, quarter or year. The usual practice is to recalculate the accrual base after a month.

It is most profitable to place the best deposits with capitalization and replenishment in Moscow in the following cases:

it is possible to deposit money for a long time;
there is no need to spend dividends received in the short term.

The best bank deposits with interest capitalization - what you need to consider

The nominal value of the rate offered by financial institutions in Moscow may be lower compared to deposits on which accrued interest is paid monthly or at the very end of the placement of funds.

To obtain the best savings conditions, you must request from the bank effective rate, which takes into account intermediate recalculations.

But even in this case, it may turn out that the conditions for a deposit with payment at the end of the placement period will still be better. It should be taken into account that such financial instruments Replenishment and early withdrawal are not allowed. Initially, apparent attractiveness may not justify itself in practice. Therefore, banks are offering them less and less to their clients.

Considering all the subtleties about profitable deposits with monthly capitalization and replenishment, start the registration procedure by filling out the online application form.

Deposits with monthly interest capitalization are popular among bank clients. Compared to classic deposit programs, they have high returns. This is explained by the fact that interest is accrued throughout the term of the agreement and is periodically added to the principal amount of the deposit.

The most common types are monthly, daily and quarterly capitalization. This means that interest, for example, is calculated at the end of each month and added to the deposit amount, and subsequently interest is calculated on interest, thus increasing the final profit.

For analysis, we selected the largest banks in the country with good credit rating. The reliability factor is one of the most important when choosing a bank to place a deposit, because when entrusting his money to a credit institution, the client wants to be sure that he is not putting his savings at risk.

Having studied the available proposals, we included in the rating Sberbank, VTB24, Gazprombank, Rosselkhozbank, Bank of Moscow, Alfa-Bank, Raiffeisenbank, Promsvyazbank, NOMOS-BANK, UniCredit Bank, Rosbank, Russian Standard, URALSIB, Home Credit Bank and Citibank. They are designated as systemically important and actively promote their deposit products.

The rating includes profitable deposits with capitalization, with a maximum interest rate of Russian rubles. The table shows the nominal rate excluding interest capitalization. For the analysis, we took standard programs suitable for all categories of depositors, which can be applied for at the bank’s office. Special offers, for example, we did not consider online deposits for pensioners or students in the same way. The table includes deposits with monthly interest capitalization (both replenished deposits and not), one from each bank (with the maximum rate).

Note!

We have selected for you the best offers from the country's largest banks with good credit ratings.

Analysis results

During the analysis, we found that almost all credit organizations They offer several programs with interest capitalization in rubles, US dollars and euros. It turned out that only Citibank does not have capitalized deposits. In Sberbank, capitalization is possible for all programs, and the client independently chooses: to withdraw interest or add it to the principal amount of the deposit. The interest rate usually depends on the term and amount of the deposit. Wherein minimum bid is 5.6% per annum (at Raiffeisenbank), and the maximum is 10% per annum (at Home Credit Bank).

Below we will consider in detail the terms of deposits of the rating leaders.

Home Credit Bank

The bank offers to open a “Profitable Year” deposit in rubles with monthly capitalization (at the client’s request) and the highest rate among other participants in the rating. The initial deposit is only 1,000 rubles, the period is 12 months. It is possible to make additional contributions in the amount of 1,000 rubles, but no later than 90 days after registration of the deposit. The contract does not provide for the withdrawal of part of the funds from the account. The interest rate does not depend on the deposit amount and is 10% per annum. In case of early termination of the deposit, the rate is 4.5% per annum.

Alfa Bank

In second place in the ranking is the Pobeda deposit with the maximum rate among other Alfa-Bank deposits. Minimum amount down payment– 10,000 rubles, placement period - 92, 184 or 276 days, 1 year, 550 days, 2 or 3 years. Deposit currencies are rubles, US dollars and euros. Interest is calculated monthly and added to the principal amount of the deposit (capitalized). The nominal rate depends on the term, amount and is 6.6-9.5 percent per annum in rubles. The contract does not provide for the possibility of withdrawing part of the funds and replenishing the account.

VTB 24

In third place in the ranking is the contribution “ Optimal choice» in rubles. The client independently decides whether to receive interest on a separate account or add it to the deposit amount. The frequency of interest accrual is also chosen by the investor. You can receive interest monthly, quarterly or at the end of the term. Additional contributions in the amount of 1,000 rubles are accepted. Only capitalized interest may be withdrawn from the account.

The interest rate depends on the term and amount of the deposit. During the period of placement of funds, the bet size decreases. The contract period is 18 months, the amount of the down payment is 30,000 rubles. The interest rate for up to 180 days is 9% per annum, from 181 days to 545 days – 5% per annum.

URALSIB

The fourth place in the ranking is occupied by the “Stable” deposit in Russian rubles, US dollars and euros. The minimum amount for placing funds is 10,000 rubles, the period is 91, 181, 271, 367, 541, 732, 1100 days. It is possible to top up your account during the contract period. However, when making additional contributions, restrictions apply, which can be found on the bank’s website.

Minimum amount additional contribution– 5,000 rubles. When moving to the next amount gradation, the rate increases. Interest is accrued monthly and, at the depositor's request, is capitalized or paid to a separate account. The interest rate depends on the term and amount of the deposit and is 6.7-9 percent per annum.

Rosselkhozbank

In fifth place in the table is the “Classic” deposit in rubles, US dollars and euros. The minimum down payment amount is 3,000 rubles, the term is from 31 to 1460 days. Interest is paid at the client's choice: at the end of the term or monthly, to a separate account or added to the principal amount of the deposit. Replenishment of the deposit and withdrawal of part of the funds from the account are not provided for in the agreement. The interest rate depends on the term, the amount of the deposit, the method of placing the deposit and the frequency of interest payments. Subject to interest payment at the end of the term, the rate ranges from 6.5% to 9.9% per annum, and if monthly payment interest and capitalization – from 6.5% to 8.80%.