The instability of the current economic situation is forcing more and more people to think about saving saving. Credit organizations offer a variety of options: from deposits in national and foreign currency to invest in precious metals or securities.
Recently special popularity in the financial market began to gain a product like a savings certificate. What is its essence, what are the kinds, which it provides the benefits and any drawbacks – consider the details in this article.
What is a savings certificate
Credit organizations have the opportunity to produce a number of different securities. One of them is the savings certificate. It is a document that confirms the fact that the holder made on account of the credit institution a certain sum of money by execution of appropriate contribution. It gives the owner the opportunity at the end of treatment to get the invested money with interest.
Based on the scope and status of the owner, there are two varieties:
- a certificate of Deposit;
The fundamental difference between certificates of Deposit from savings is as follows:
- available only to legal entities;
- the possibility of settlements with use of cash.
Individuals may wish to issue a savings certificate. In this case, the form of payment is not regulated – it can be as Bank transfer and cash.
There are a number of characteristics that are common to the two types of certificate. Among them are the following:
- documentary form of issue;
- possibility to transfer the right of claim to third parties;
- limited duration of treatment (usually it does not exceed three years);
- the impossibility of prolongation;
- the document may be used to pay for the purchase of services or products.
Is available two varieties the considered securities:
- using savings certificate to bearer, to obtain money any, who will submit it to the credit institution for the repayment;
- savings certificates are issued on a specific person. In this case, to receive funds is only entitled to the certificate holder. The deposited amount of money falls under the insurance program, and to transfer the right requirements is possible only by means of registration of the contract of assignment.