As an example, he cited an insurance policy or other investment product that a bank can offer as a replacement for a deposit. At first glance, the difference is invisible. However, in reality, no one can guarantee profits to a client.
“The most unpleasant thing is that if the funds are withdrawn ahead of time, the bank will only return the refund amount. And, as a rule, it is half of the invested funds,” quotes a specialist from the Prime agency.
If the insurance is not investment, but cumulative, the person must deposit money periodically, otherwise the bank may terminate the contract.
Another option is to invest in precious metals. Although gold is considered to have eternal value, its prices are also subject to inflation. Furthermore, these accounts are not included in the deposit insurance system and if a bank fails, it is extremely difficult to recover the money.
Many clients have also been interested in floating interest savings accounts. Usually banks advertise a high rate for them, but in reality it depends on the size of the account balance, the period of storage of money and the turnover of funds. Other dangers are unexpected commissions, which cancel out all the declared profitability.
As Danilov emphasized, unexpectedly high deposit rates probably indicate that the bank is experiencing serious difficulties and is on the verge of bankruptcy or revocation of its license. For a potential investor, this is a red flag, he concluded.
