What is a Bank Deposit?
One of the most used banking products today are the so-called bank deposits, the basis of traditional banking that seeks profitability in the savings of its customers. The operation is basically to provide a certain amount of money in the bank for a period and conditions stipulated to finally obtain a benefit.
Types of deposits
Current account (or demand deposit)
it is a deposit of money normally used to carry out the most common banking operations such as: direct debits of receipts, income, payments, withdrawals of money, transfer … With these deposits the holder can withdraw his money in at any time and the financial institution provides a cash service basically.
Savings account or passbook
Savings accounts allow somewhat less money availability than traditional checking accounts in exchange for a higher return offered by the financial entity for the money deposited.
This type of deposit consists of giving the bank a certain amount of money for a stipulated period of time in which it cannot be made available. In return, the customer is rewarded with an interest rate applied to the borrowed capital. If it is the case that the client does not respect that agreed period of time, a penalty is usually applied.
In general, these bank deposits have a very simple operation where all are governed by this rule: the longer term, the greater profitability. We can also know more details about this financial product through the official deposit simulator of the Bank of Spain through which we can see in just a few minutes the benefits obtained based on the amount deposited and the established time period. Depending on the case, the conditions and taxes to be paid are different considering whether we are facing natural or legal persons.
And finally, from the official Yul Living blog we remind you that we can only find this product legally in banks, savings banks or credit unions.