Term Deposit - a contract under which provides financial institutions an agreed amount of their funds for a certain time, and after the initial financial obligation of the organization employer to pay You this higher amount in the stipulated percent.
The fixed interest rate is safer (at the moment of making a Deposit you will be aware of her interest), but, as a rule, below.
Capitalization of interest (add the interest to the Deposit amount, so that in the following period of the agreement, interest may be accrued from greater amount).
For example: you create a Deposit of 6 per cent, in the amount of 2000 rubles for 1 year.
Here we must reckon with the fact that withdrawal before the deadline will result in the loss of part or all of the interest.
Risks associated with investing in deposits
Most financial institutions and banks offer different options that allow you to repay your debts without having to file for bankruptcy.
You can also get loans to pay off student loans as well as credit card debts in a short time.For instance, some businesses will allow you to transfer the balance of your credit card debt onto their consolidation loan.
This will enable you to make one monthly payment, which is usually lower than what your previous monthly payments were.
Many lenders offer programs that allow you to consolidate all of your debts into one.
This program allows you to obtain a loan from banks.
When you apply for a loan from a bank, however, you will be required to show proof of employment like a pay stub from your previous employer.