Money should not lie idle ─ it should work and bring profit to its owner. This simple rule is known to many. When available financial resources A person is faced with the question of their reliable and profitable investment.

Most of our fellow citizens are not experts in the field of investing and financial analytics. Therefore, they prefer the simplest and most well-known way - to open Bank deposit and receive interest on invested funds. Studying numerous offers from different banks, they are faced with some unknown terms that determine the conditions for placing funds and the amount of income received. We will deal with one of these terms, called capitalization, in this article.

What is capitalization of interest on a deposit?

Despite the rather unusual name, the essence of the concept of capitalization of interest on a deposit is quite simple: accumulated over a certain period (usually a month) interest is added to the principal amount of the deposit. At the same time, the size of the deposit increases, and the next interest accrual is made for a larger amount.

Thus, income is generated not only by the funds initially placed, but also by all the interest accrued on them. A similar scheme is sometimes called deposit with compound interest, because the final, or effective, rate on such a deposit turns out to be higher than the initial one.

The most popular deposits today are those with monthly, quarterly and annual interest capitalization. Deposits with daily and weekly capitalization rarely appear on the market. It is important to distinguish between the frequency of interest accrual and the frequency of capitalization of the deposit. For example, a bank can calculate interest daily and add it to the principal deposit monthly.

There is an instrument very similar to a deposit - a bank bill. Follow the link for information on what a bill is and how the bill is settled. Interesting fact: Defaults on bills are much less common than on bonds.

In conclusion, let us give some advice on choosing a method for placing financial assets in a bank, taking into account the topic of this article - interest capitalization.

1. When choosing an accumulation strategy, it is necessary to take into account existing opportunities at the present time and assess possible needs in the near future. If you are sure that the available money will not be needed in the foreseeable future, you can look for a deposit with the highest effective rate, including that obtained through capitalization. If there is no such confidence, it may be worth sacrificing this option in favor of, for example, partial withdrawal - but keep in mind that most often, if you terminate the bank deposit agreement early, you lose all the interest earned.
2. In the process of choosing a specific program, it is necessary to analyze all the bank’s offers, both with and without interest capitalization. Comparison of money placement conditions must be carried out based on the size of the effective rate. The relevant information can be obtained from bank employees or as a result of calculations using a deposit calculator on the website of a financial institution.
3. Regardless of what type of deposit you prefer, Special attention it is necessary to pay attention to the reliability of the bank. Information about this can be obtained from independent ratings, analysis of the asset structure and list of owners. Important factors are also the period of existence of the bank, its reputation and image. Well, it goes without saying that the organization to which you want to entrust your money must be part of the bank deposit insurance system, which provides state protection for all deposits placed up to 700 thousand rubles.

Almost always, choosing a bank is a compromise between its reliability and status and the interest rate.

Thus, deposits with interest capitalization – great way to increase the rate in force at the time of opening the deposit for those who have money and want to invest it for the purpose of maximum accumulation. If the resulting effective rate on a deposit with capitalization is higher than with a regular placement, other equal conditions, feel free to accept the terms of such a deposit and receive additional profit.

Some people think that the only important criterion for choosing a bank deposit is interest rate. But this is not entirely true, the interest rate is certainly important factor, but do not forget about other parameters.

Today we will talk about interest capitalization. What is it, and why is it so important and good? Any mathematician or financier will tell you that capitalization is a compound interest, which is calculated using the formula:

P= N*(1+(Y* J/100* T)) A, Where

— initial deposit amount;

— total deposit amount;

— annual interest rate;

— number of days in the capitalization period;

- number of days in a year (365 or 366);

— number of capitalization processes;

Don’t be alarmed, it’s better to immediately send such a financier or mathematician to the bathhouse and hide the formula away... Let’s translate it into Russian. Capitalization of the deposit- this is simply the automatic addition of the amount of interest to the deposit. Thus, in the next period interest will already be accrued on the deposit amount + % for past period. And so on until, in fact, your contribution ends.

Let's say you opened a deposit on June 1 for 1 year from monthly capitalization. On July 1, interest for the month of June will be added to the main deposit, and on August 1, interest will already be accrued on the amount of the deposit and the amount of interest for June, and so on.

I think it is obvious that the more often capitalization occurs, the more profitable it is. Accordingly, if capitalization is monthly, then this quite significantly increases effective interest rate by deposit. And if you have capitalization once a quarter or once every six months, then this will have virtually no effect on the interest rate on the deposit. And this is just an advertising ploy by the bank to confidently tell the future depositor that the deposit has capitalization, in the hope that he will not specify the period of this very capitalization, but simply, having heard the right word, will open such a deposit without hesitation.

To estimate the difference in expected income from two deposits with the same annual interest rate, but different procedures for calculating interest, we will use the service fincalculator.ru. Let's say we opened 2 deposits in the amount of 500,000 rubles at 18% per annum, in one interest is accrued at the end of the term, and in the other there is monthly capitalization. We enter the initial data into the financial calculator (read more about its capabilities in the article ““) and get the following results at the end of the deposit period:

On the deposit without capitalization, after a year we had an amount of 590,246.58 rubles;

On a deposit with monthly capitalization after the same period we have a total amount of 597,589.76 rubles;

Feel the difference... In other words, the effective interest rate on the first deposit was 18%, but on the second, taking into account that the amount on which these 18% per annum were accrued was constantly increasing, the effective interest rate was 18.75%.

Almost all depositors know what the deposit rate is, and many also understand how interest is paid to bank clients. However, not everyone knows what deposit capitalization is and how to work with it - this is the topic covered in this article.

Capitalization of interest on a deposit account is the addition of the due interest to the principal amount of the deposit. Thus, the investor not only increases the size of his capital located on deposit account in the bank, but also increases the “return” of the deposit: than more contribution, the more in absolute numbers the client is paid at the interest rate.

The easiest way to show this is with an example:

• Conditional employee Evgeniy deposited 300 thousand rubles into the account, for which he is entitled to 10% per annum every year;
• If Evgeniy chose, for example, annual capitalization, due 10% per annum - 30 thousand rubles - will be added to the main deposit. In this case, the deposit will increase to 330 thousand rubles, and the interest payment next year will be 33 thousand rubles;
• If Evgeny wished to open an account without capitalization, then interest in the amount of 30 thousand rubles will simply be transferred to his account. The deposit amount will remain the same as before, and Evgeniy will be able to spend the 30 thousand rubles received from interest at his own discretion.

How often can capitalization be carried out?

The frequency of capitalization depends entirely on the agreement signed between the client and the bank employee.

On this moment The most popular among investors are weekly, monthly and quarterly (every three months) capitalization.

In addition, at the legislative level there are no restrictions on the frequency of capital increases: the form of the agreement and the procedure for relationships are almost completely regulated Civil Code RF, which means everything depends on the agreements between the parties. For example, capitalization once every six months, once a year, and even on a daily basis is quite possible.

How to calculate interest accrual on capitalization?

Bank employees use special formulas for calculations, and only in rare cases are they complex enough that an ordinary person cannot use them for himself. To calculate the total deposit amount after interest has been calculated, you will need the following formula:

T = S*(1+N/100) to a degree depending on the frequency of capitalization, Where:

• T - total deposit amount;
• S - initial amount;
• N - bank rate.

Using an example:

1. Evgeniy deposited 300 thousand rubles into a deposit account at 12% per annum;
2. 1+12/100 = 1.12;
3. This number must be raised to a power depending on the capitalization period. Let's say interest is calculated every six months, then 1.12 must be raised to the power of 0.5, resulting in the number 1.058;
4. We multiply 300,000 by 1.058 = 317,400. This is the amount that an investor who chooses capitalization once every six months will get.

Help: it is necessary to take into account that Exact sum will be slightly larger: in our example, the number after raising to a power was rounded down.

Accordingly, the investor’s profit for two quarters will be 317,400 - 300,000 = 17,400 rubles. You can easily see that there is nothing complicated in using the formulas, but the depositor may accidentally make a mistake during the calculation process, so it is recommended to use online banking services to calculate the total deposit amount.

Which deposit is the most profitable - with or without capitalization?

The answer to this question depends on what goals the investor is pursuing. If the investor does not have the task of investing money for long term- for example, he just needs to set aside money to buy something in the near future - the capitalization option may simply not be needed.

The increase will hardly be noticeable, but the investor will not be able to withdraw money just like that: when opening a deposit with interest accrued to the account, as a rule, you can withdraw money only after the end of the period established by the agreement.

However, if the investor needs an account for a period of more than a year (especially for a period of more than five years), the benefit of accrual becomes obvious. Although the interest rate remains unchanged, the profit received from it regularly will increase, because... The deposit amount is replenished with accumulated interest at certain intervals.

For example, an investor who did not take advantage of the accrual of interest will receive his 300 thousand rubles back ten years later, and also annually he received 30 thousand rubles at a rate of 10% per annum - a total of 600 thousand rubles, of which the profit is 300 thousand. In turn, the investor, who capitalized his contribution every year, will receive a total of 778 thousand rubles, a profit of 478 thousand rubles.

Thus, for long-term investing, capitalizing interest is the only correct decision from a financial point of view; for short-term investing, it is less clear and depends on the subjective preferences of the investor.

Pros and cons of interest capitalization for the investor

Of course, such a profitable solution also involves a number of inconveniences, otherwise banks simply would not offer other types of deposits.

• With long-term investment of funds, periodic capitalization of funds significantly increases the final profit of the deposit. Please note: the more often capitalization occurs, the greater the profit the investor will receive;
• For those who plan to collect a large sum- as security for a pension or to purchase something - a deposit with interest will allow you to do without unnecessary expenses, because withdrawing money is quite difficult for users of this type of deposit. In this case, the account becomes partly a savings account.

• The amount received from interest monthly can sometimes greatly help the investor with his financial situation. However, a capitalized deposit means that all of this interest is credited back into the account - meaning that the investor is giving up profits in the short term for greater profits in the long term;
• If the ability to withdraw money from an account without restrictions is extremely important to a citizen or accessibility is required early termination agreement unilaterally, then the contribution with capitalization is not unequivocally suitable, because According to the terms of the agreement, both the period and amount of withdrawal are limited Money.

How to choose a deposit with interest capitalization?

When choosing a deposit, you need to pay attention not only to the standard conditions for placing money - interest rate, minimum opening period, minimum placement amount, and so on - but also to the conditions associated with capitalization itself.

Firstly, not all banking organizations offer interest accrual weekly, much less daily. Basically banks offer monthly accrual; in this case, weekly or daily capitalization becomes a significant advantage, because such frequency will give the greatest increase in the contribution.

Secondly, not all organizations provide for contract extension. For those who invest in the long term, this can be a disadvantage: if it is necessary to keep money in the account for some more time, the investor will simply be refused, citing the terms of the contract.

Thirdly, the parameter of withdrawal and replenishment of funds is extremely important. For those who want to actively manage their deposit account, this parameter becomes key, because The feasibility of keeping an account depends on this.

Thus, having decided on his own goals and desires, the investor can pay attention to those parameters that play an extremely important role for him.

Popular deposits with capitalization from other banks.

What options are there in the banking services market?

Most popular among Russians banking organization- both in terms of lending and deposit accounts - is still Sberbank. In this regard, it is his proposals that we will consider.

In total, there are currently three deposit programs for different categories of the population:

"Manage" deposit. Ideal for middle class citizens (in terms of income) who do not intend to invest money for the long term. Minimum term opening - 3 months, maximum - 3 years. The highest interest rate on the deposit cannot exceed 3.8% per annum; there is the opportunity to partially withdraw money, replenish the deposit, capitalize interest and close the account early. The minimum amount to open a deposit is 30 thousand rubles.

Deposit “Top up”. The period for opening a deposit is the same as in the previous offer from Sberbank, however, the minimum amount starts from 1000 rubles. The interest rate may rise to 4.1% per annum, while partial withdrawal funds are impossible early closure and interest capitalization is possible. The offer is suitable for citizens who want to open an account for a long term.

“Save” deposit. The deposit term is from one month to three years. The minimum replenishment amount is 1000 rubles. The maximum possible rate is 4.45% per annum, and the investor cannot replenish or partially withdraw money. Capitalization is also available to the investor.

Having studied the above list, you can understand that the terms of the programs are focused on different customer needs. For this reason, the first and foremost task of the investor should be to determine own desires, because the final benefit from opening an account depends on this.

The nuances of interest capitalization in the case of lending

If we compare a deposit and a loan, when issuing a loan with capitalization, the borrower receives, on the contrary, less profitable terms. The reason is that the interest accrued on the loan is added to the loan body monthly.

Consequently, interest payments increase. As a result, a situation may arise when the borrower borrowed completely a small amount, but for a long period - and as a result, the overpayment may be 50% or more of the originally issued funds.

There are two main nuances. Firstly, the condition for adding interest to the “loan body” in mandatory must be written in loan agreement. The absence of this clause makes the entire process illegitimate, and the defrauded borrower will have every right to go to court with a complaint against the bank. Therefore, before signing the document, the borrower needs to carefully study it, especially the section “Subject of the agreement”.

Secondly, if the lender is an organization using a simplified taxation system, interest payments must be indicated as expenses, and personal income tax must be withheld from each amount paid to the lender. If the borrower is individual, all responsibilities for tax deductions are assumed by the creditor organization.

Video on the topic

In this material:

What is capitalization of a deposit? Any banking institution functions by attracting the financial savings of some individuals, issuing them to others for a fee and making a profit from this. But in order to attract free capital specifically to your financial institution, potential clients - owners of free funds need to be interested economically by offering them the most attractive and favorable conditions.

Capital in the economy is a resource that can increase if it is managed correctly. Both directly invested funds and interest can be capitalized. Capitalization of a deposit is an increase in its total size due to the accrual of simple or compound interest (discount). Interest is the bank's payment to the client for entrusting his capital to this financial institution. If interest is capitalized, then these are charges made on interest that was previously added to the amount of the deposit in previous periods of time. Using simple interest their calculation on credited for previous periods amounts are not kept.

How is the deposit amount with capitalization calculated?

Calculation of the size of deposits with capitalization in general view is made according to the discounting formula:

BS = NS * (1 + α) t,

where BS and NS are the future and initial amounts, respectively,

α – the value of % added after the set period;

t is the number of periods after which the amount with capitalization must be determined.

Charges depending on provided for by the agreement terms of deposit placement can be made annually, quarterly or monthly, or once upon completion of the entire period of use of the deposit. In the latter case, only the deposit amounts increase, and not the interest. In all other options, both accruals and the deposits themselves are capitalized.

How to determine which deposit is more profitable?

The more often % is accrued, the, as a rule, more profitable investment s with capitalization, even though the interest rate on them is usually somewhat lower than the standard one.

We will consider calculating the deposit size using the discounting formula given using the example of placing savings of 100 thousand rubles. at 12% per annum for various possible options accruals:

• once after a year;
• quarterly;
• monthly.

Let us assume that all the money added by the bank to the account during the year is not withdrawn by the owner until the end of the year. Based on this, we will calculate the size of deposits with capitalization as of one year after they were credited to the account (Table 1).

Table 1.

Calculation of deposit amounts with capitalization

As can be seen from table. 1, at the same annual interest rate, a deposit with monthly accrual is most profitable. However, in practice in these cases a little more is usually used. low rates, since bankers seek to encourage the placement of depositors' funds with them for a longer period.

Note that in the first of the considered options, during the first year of placement of money, interest is not capitalized. For this to happen, it is necessary to invest funds for a period of 2 years or more.

What is capitalization of a deposit and 3 disadvantages of capitalization. What conditions may depend on bank deposit? What are the terms for accruing interest on a deposit? How to choose a profitable bank deposit?

A deposit is one of the most common ways to store money.

In order for the amount not just to be at home, under the mattress, but usually deposited in a financial institution at a certain percentage.

Thus, the capital is partially insured against depreciation. Or, at a minimum, it is stored in a safe place and is “in use” all the time.

There are different deposits, and each bank offers its own conditions. Typically, the choice of conditions depends on the duration and purpose of such investments.

One of the important characteristics of a bank deposit is the periods during which the client can make a profit, this is what defines the concept what is capitalization of a deposit.

Deposit capitalization – what is it?

What is deposit capitalization in simple words?

Deposit capitalization is a type of calculation and accrual based on the amount deposited into the account.

More precisely, income is accrued not at the end of the selected period, from the initial amount, but throughout the entire period at certain stages.

For example, quarterly, when the dividend is accumulated in stages, four times a year. Each time it is calculated not from the original amount, but from the one to which a certain share has already been added.

To make it more clear, you can look at this with an example:

Let's take an initial capital of 1,000,000 rubles, which was deposited in a bank at 12% per year.
In this case, we will choose the monthly deposit rate. Every month the amount in the account will increase by 1%.
In the first month, 10,000 rubles will “fall” into your account. As a result, we get 1,010,000.
Next month, 1% will also be charged, but it will no longer be 10,000, but 10,100.
And so on for every month.

The general formula for admissions is as follows:

For example, the same 100,000 rubles, and if we take interest rates of 10%, 15% or 20%.

In half of the cases, by choosing a type of investment with the condition of monthly crediting to the account, but not with such a high percentage, you can get more than in the case of annual accrual, but with a higher bank rate.

“Pros and cons” of capitalization of deposits

The advantages of such a proposal would seem obvious. At a minimum, we saw this in the example discussed above.

However, as in many other financial situations, you can’t do without shortcomings.

Among the disadvantages are the following points:

Even if deposits occur frequently, they can only be withdrawn within certain periods specified in the contract.

But this is a dubious minus, since it does not confuse everyone.

1. In case of premature withdrawal of investments in in full(termination of the contract for a certain duration), the investor receives a completely different dividend, which depends on the current accounts in the selected institution.

Compound interest is not always more profitable than the standard method of calculating the income rate, since such a rate is usually lower, so it is not always worth choosing a deposit with a complex calculation.

It is better to analyze all the offers and choose the most profitable one, which will allow you to get the most.

Where else can capitalization and its types occur?

1. On a loan (credit).

Of course, in the case of bank investments, compound interest work to the advantage of the investor if he has calculated and understood the conditions correctly.

But sometimes a factor such as capitalization is not positive. For example, in the case of lending.

A situation often occurs when a person takes a not so huge amount, but pays it off for a very long time. During this period, it would have been possible to repay the debt in full long ago, however, sometimes only half is repaid.

This is where compound interest comes into play.

In this situation, the following picture emerges: every month the initial amount grows by a certain percentage. What does it mean - the overpayment is calculated from the amount with already accrued interest.

These are far from the most favorable lending conditions, since in this case the overpayment can be reduced only by paying off the debt as soon as possible.

2. On the market (market).

This process can be traced almost everywhere in the economy, for example, in the market.

If we are talking about market capitalization, then we can consider the calculation monetary growth a certain sector of the economy, industry, or even a single company.

If you select the activity of a certain enterprise, then, using it accounting report, you can see an increase or decrease working capital of this company.

In order to get a true picture, you need to take into account only the capital belonging to the enterprise itself, excluding all borrowed funds from calculations.

Market capitalization has nothing to do with deposits but it reflects General characteristics this process.

How to choose the optimal conditions for banking investments?

What are the periods for crediting dividends on a deposit?

All intervals at which the bank credits income are selected and proposed by the bank itself. The depositor accepts or rejects the conditions proposed by the bank.

There are the following periods for calculating income at the rate:

1. One-time enrollment– the most unprofitable capitalization, since, in fact, there are no internal accruals, only at the end of the deposit period.

Enrollment annually– brings in insignificant income if we are talking about a short period of time (2-3 years).

If we consider a longer period (for example, from 5 years), it may turn out to be a very profitable solution.

Quarterly capitalization– this option is more profitable and convenient for those who are interested in a short-term deposit.

The reason is that a certain percentage, according to the rate, will be paid every 3 months.

2. Monthly capitalization– most suitable for a short deposit period, since the interest accrues every month.
3. Daily is a very rare occurrence, since this type of deposit will be very profitable for the depositor, but very unprofitable for the bank.

What are the main points to pay attention to?

After analyzing all the offers and advantages, have you already decided that the type of deposit with compound interest growth is suitable?

You still need to take into account additional nuances that may affect how profitable this deposit will be.

List of nuances that should always be discussed with a bank employee:

• What will be the interest rate if we do not take into account capitalization?
• Terms and periods of accruals based on the investment amount.
• How will interim interest be calculated?

You need to understand that interim dividends can be credited to a separate account, which means that the initial deposit amount will not change over the course of the selected period.

And at the end of the period only total percentage by deposit from the original amount.

Or, as in the calculations above, intermediate charges can be added to the initial capital and, as a result, further interest will be calculated from the total amount.

Conclusion about what is capitalization of a deposit and a short advantage

From all of the above, we can come to the conclusion that such a phenomenon as capitalization still has more advantages than disadvantages.

This type of investment is designed for those people who are interested in income stability, as well as the desire to receive maximum amount for the shortest period.

If we are talking about collecting money for the purpose of purchasing real estate or other large-cost purposes, then the deposit, which takes into account capitalization of the deposit is exactly what is needed.

However, there are areas in which it is not only a positive thing. One of them - . Capitalization rates for lending are also growing rapidly, as are interest rates for long-term deposits.

Just something complicated. What is capitalization of a deposit?

How it works? Details in the video:

However, in the case when a deposit with capitalization is decisively chosen, you need to select the conditions very carefully, since it is very difficult to find a bank that offers high percent under fair conditions...

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