Among the tools that help save money from inflation and increase savings, there are two most popular ones - investments and bank deposits. They work differently, and each has its own advantages and disadvantages. In this article, we talk about the intricacies of these savings tools and try to answer the question of what is more profitable - bonds or deposits.
How deposits are structured
This is the simplest way to save capital, which is very easy to master. It is enough to contact the bank, choose a suitable program, fulfill all the conditions and receive a pre-determined income. The entry threshold is low - on average from 10,000 ₽.
Features of savings programs in banks:
the rate is set immediately and is specified in the contract;
You can find out in advance how much you will earn at the end of the term.
By term, all bank deposits are divided into term shandong mobile number database and demand. You cannot withdraw money from term deposits before the term expires, otherwise the depositor loses the accrued interest. Demand deposit programs are more flexible, money can be freely withdrawn from the account, but they have lower yields than term deposits.
How securities investments work
Investments in bonds are a conservative type of investment, in which the issuer (the organization that issues the securities) borrows money from the investor and undertakes to return it with interest.
If you buy a bond, you conditionally become a creditor, and the issuer is your borrower. The return on such investments is not determined in advance and may change depending on market conditions. On average, it is higher than on deposits, but this is associated with risks for the investor.