MOSCOW, March 9. Banks actively advertise deposits with high rates, which may hide unprofitable options, lawyer, teacher at the Financial University under the Government of the Russian Federation Kirill Danilov told the Prime agency.
This could be an insurance policy or other investment product with questionable and risky returns. “The most unpleasant thing is that if funds are withdrawn early, the bank will return only the redemption amount. And it, as a rule, is half of the invested funds,” explains Danilov.
If the insurance is cumulative, you will have to deposit money regularly, otherwise the bank may terminate the contract.
Another option is a deposit in precious metals. Although they are of eternal value, metal prices are also subject to inflation. In addition, such accounts are not included in the deposit insurance system; in the event of a bank bankruptcy, it is extremely difficult to return the money.
Savings accounts with floating interest have recently become popular. They advertise a high rate, but in reality it depends on the size of the account balance, the storage period of the money and the turnover of funds. There may be other conditions, such as unexpected fees. This negates all declared profitability.
In addition, unexpectedly high deposit rates mean that the bank has serious financial problems and is on the verge of bankruptcy or revocation of its license. For a potential investor, this is a red flag, Danilov concluded.