Bank deposits VS Forex

Investment activity is slowly but surely taking hold of Russian citizens who have monetary savings and are wondering how to place their capital profitably. Saving cash, «according to grandmother’s recipes,» does not give an effect, because the level of inflation easily «eats» the deferred «untold stock».

By setting priorities, potential ordinary investors put on the scales two main factors: profitability and the level of reliability. On this basis, investment is divided into passive and aggressive. Additional circumstances that affect the choice — the strength of conservative traditions and the need to make personal efforts (obtaining additional knowledge, mastering a new type of activity). The most vivid example of a dilemma is deposits under interest (bank deposit) and trading in financial markets, where the over-the-counter foreign exchange market remains out of competition.

Bank deposits

Deposits in banks, so far, remain the most common way of investment among the population of the Russian Federation. For the first half of 2017 deposits for individuals have exceeded 23 trillion rubles. Despite the fact that interest on deposits tend to significantly reduce profitability, depositors continue to carry money to the bank at interest, believing that the deposit will ensure financial well-being.

The banking system of the Russian Federation practically leveled the difference with European banks, where deposits at a high interest remained in the distant past. About the rates of 10% per annum in currency, or 17-20% in rubles, only memories are left today. Today’s realities are 2% for deposits in foreign currency and 8.5% for rubles, and these are the best offers of deposits in 2017.

Banks offer different kinds of deposits for clients. Interest on deposits depends on the type of deposit that you open. It is necessary to pay attention to the following parameters:

• term for placing money in a bank;
• currency (foreign — usually US dollar or euro, ruble);
• purpose;
• functionality;

 Demand deposit

This account does not bring a profit to the depositor as the rates on it are minimal — up to 0.1% per annum. The advantage of opening such a deposit is that there is no timeframe, funds are kept under bank protection, it is possible to terminate the contract at any time.

Term deposit

This type of deposit is the most popular. Clients deposit funds for a certain period, usually from 3 to 12 months, which guarantees a client can get the interests in full if the contract has not been terminated prematurely (otherwise, the bank will pay interests on the demand deposit rates).

Term contributions have several options:

1. savings. It is characterized by the highest yield. Restrictions — you can not replenish the deposit and withdraw, even part of the funds;
2. accumulative. A distinctive feature is capitalization. The deposit can be replenished, which ultimately increases its profitability. Initial rates are below the savings deposit;
3. universal, or settlement deposit. It is used to monitor and manage the savings part of savings. If deposits are without loss of interest in case of early termination are a necessary option, then this kind of account is provided (not in all banks).

Any full-time citizen of the Russian Federation can open a deposit in the bank upon presentation of a passport (or a document that replaces him). There are no restrictions for non-residents (the package of necessary documents is wider). Having opened any type of deposit, a service is provided with payment of interest on the card.

One of the main arguments for banks and deposits in deposit accounts is the state guarantees law for individuals (deposit insurance for up to 1.4 million rubles).

Banks of Moscow

Deposits with Moscow banks are leading in terms of volume indicators. Investors should take into account that high interest rates and reliable banks are not always compatible categories. Increased reliability of deposits in Moscow in the top-tier banks differ, but such financial institutions «do not indulge» in large incomes from a deposit account. Therefore, the question of which bank to open a deposit in is the most «painful» for a potential client.

Banks with high interest on deposits

The top 10 reliable banks offering interesting deposit conditions include:

• Sberbank of Russia (average rate of 5.6% in rubles for 12 months);
• Moscow Industrial Bank (8%);
• UniCreditBank (8.13%);
• Trust Bank (7.25%);
• MTS Bank (8.25%);
• Absolut Bank (8%);
• City Bank (7% for 6 months);
• Alfa Bank (7.23%);
• VTB 24 (7.12%);
• Gazprombank (7%);

VTB Bank of Moscow offers the following deposits for individuals in 2017:

1. «Loud profit» — a deposit in rubles for 4 months. at 7.6% per annum with a monthly interest payment;
2. «Maximum income» — you can open a deposit in rubles, US dollars, euro.

• ruble — rate of 7.1%, placement for 3 months, payment of interest monthly;
• US dollar — rate of 1.7% for 2 years;
• euro — 0,01% for 3 months.

To put money into a chosen deposit, it is possible to do it at a bank office (you can apply online).

Alternative investments

Forex market acts as an alternative to low-yielding bank deposits. Passive income from a bank, even with large amounts, can not be equal to the profits that traders have. Undoubtedly, the risks of Forex trading are incommensurably higher, but the difference in income can be estimated in the same way.

An amateur trader earns an average of 30-40% per annum, and professional traders — from 80 to 150%. Such earnings have become possible, thanks to very high liquidity on Forex — the daily turnover of funds is more than $3 trillion.

The number of traders in the world is constantly growing. Russia has not become an exception — hundreds of brokers are represented on the market, including authoritative European companies, adapted to the conditions of the local market. Sites of brokers offer a variety of training programs for traders of different levels of training, especially for beginners (full-time and part-time forms of training — seminars, webinars, video courses, e-library and many others).

Companies that work in the financial market have the licenses of the world’s leading financial regulators, use segregated accounts to protect client deposits, constantly improve the technological process of trade, supplement the trading environment with new opportunities. On Forex you can trade not only on the exchange rate difference of currency pairs. With the help of CFD-contracts, such assets as oil, precious metals, stocks, indices, etc. have become available.

The opportunities of Forex are used by that part of investors who are ready to master new knowledge and to risk «wisely». As John Rockefeller put it, «it’s better to do something and make mistakes than to be afraid of making no mistake.»