When placing funds on deposit, the depositor deliberately refuses to use them during the time specified in the agreement. Having fulfilled this condition, after the expiration of the contract, he receives his own money and interest accrued by the bank.
However, the client is not always able to meet the deadline set by the agreement with the bank. In this case, he has to resort to early termination of the deposit.
Encouraging clients to place deposits for a long time, banks offer the highest interest rates on such deposits. Such agreements do not allow replenishment of the account or withdrawal of part of the invested amount, and interest is paid at the end of the term, annually or quarterly. In addition, interest capitalization is often provided for such deposits, i.e. the accrued interest amount is summed up to the principal amount of the deposit, and further interest is accrued on the total.
When making a deposit, the client has the right to terminate the agreement signed with the bank at any time and receive money in his hands. This procedure is regulated by the Civil Code and cannot be violated under any circumstances.
As a rule, termination of the deposit before the end of the period specified in the contract is a forced measure. The client resorts to it when cash is needed for unforeseen expenses. It is unprofitable for the depositor to receive money from a deposit account ahead of schedule since in such a situation he loses most of the interest.
Penalties for early withdrawal of deposits
Some financial institutions not only reduce the amount of interest that customers receive in the event of early termination of the deposit but also try to withhold the fine. Since it is illegal to indicate such sanctions in the contract, banks introduce hidden fees for early withdrawal of funds by depositors:
transfer money from a deposit to a current account, when withdrawing cash from which a commission is taken;
establish a fee for the storage of funds upon closing a deposit account before the expiration of 1 month from the date of the start of the contract.
See also: Deposits of Credit Europe Bank for individuals. Terms and deposit calculator
To avoid such traps and get the money invested in the deposit in full, the depositor will only be helped by a thorough study of the deposit agreement before signing it.
Under what conditions do banks issue deposits to customers ahead of schedule?
Financial institutions indicate the conditions for early termination of the deposit in the deposit agreement, which is signed with the client after the transaction. Depending on the type of account, when a depositor withdraws a deposit earlier than the due date, banks pay interest according to the following schemes:
recalculate the interest accrued from the start date of the agreement at the rate of the deposit “on-demand”;
pay the client half, 1/3 or 2/3 of the accrued interest for the actual period of placement of funds;
apply a combined scheme, within the framework of which clients receive interest in full for the period specified in the agreement, and for the remaining period they recalculate the depositor’s remuneration at the rate of demand deposits.
NamelessObviously, of all the options presented, the least advantageous position is for the depositors, under whose agreements the interest is recalculated at the rate of the “demand” deposit. The rate under such contracts does not exceed 1% per annum.
Most banks fix the demand deposit rate at 0.01%. Thus, the client’s income in case of early withdrawal of the deposit is minimal. For example, when terminating a deposit of 100 thousand rubles, the validity of which is 12 months, a month before its expiration, the client will receive only 915 rubles of income in his hands.
Early termination of the deposit on the example
Consider, using the example of the “Replenish” deposit from Sberbank of Russia, how much the depositor will receive on a deposit with the possibility of replenishment and capitalization, subject to its early termination.
Parameters of the issued deposit:
Sum 100000 rubles
Validity 12 months
% bid 6.43% with capitalization, 6.25% without capitalization %
Interest accrual Monthly
In case of early termination of the “Replenish” deposit before the expiration of 6 months, the bank recalculates the amount of accrued interest at the rate of the “On Demand” deposit. When withdrawing a deposit after the expiration of 6 months from the start date, income is paid in the amount of 2/3 of the rate fixed at the time of signing the contract, excluding capitalization.
See also: anonymous bank account
Dates of replenishment and withdrawal of funds from the deposit:
date of Sum Deposit operation
05/06/2013 100 000 rubles Replenishment (contract execution)
09/07/2013 10 000 rubles Replenishment
16/01/2014 10 000 rubles Replenishment
Considering that in case of early termination of an S ber bank deposit, interest is recalculated without capitalization, the formula for calculating it is as follows:
SP = (SD * P * d) / (100 * D), where
SP – the amount of accrued interest;
SD – the amount of the placed deposit;
P – the size of the rate under the contract;
d – the number of days in the period for which interest is calculated;
D is the number of days in a year (leap year, non-leap year).
Period Number of days in a period Deposit amount The amount of accrued%, rub.
05/06/13 – 09/07/13 34 100000 582.19
09/07/13- 16/01/14 191 110000 3597.59
16/01/14 – 04/03/14 47 120000 965.75
Total 120000 5145.53
Thus, for the period from the start date of the contract to its early termination, the bank counted 5145.53 rubles. percent excluding capitalization. Since more than 6 months have passed since the conclusion of the contract, a coefficient of 2/3 is applied to the accrued amount. The client will receive:
5145.53 * 2/3 = 3430.35 rubles
Total amount including investments:
100000 + 10000 + 10000 + 3430.35 = 123430.35 rubles
For those clients who plan to receive the maximum income on the deposit, bankers recommend dividing the investment amount into several parts. This will allow, if necessary, to terminate one of the existing deposits and receive interest on others in full. Another option that will protect against loss of income is a deposit with the possibility of withdrawing part of the funds.