In the first case, you can replenish the account after its opening. Replenishable programs allow you to increase the amount of investments and, therefore, receive a higher income from interest.
In the second case, you deposit a certain amount into the account once upon signing the agreement and cannot replenish the deposit during the entire term.
In addition, the programs differ in the possibility of iceland mobile database conducting expenditure transactions. There are deposits:
with partial withdrawal of funds from the account,
without removal.
If withdrawal is allowed, you can freely manage your investments without going down to the minimum balance. If spending transactions are not provided, you will not be able to withdraw part of the money from the account without losing interest.
To choose the right program, you need to consider both parameters - replenishment and withdrawal. The ability to manage funds, as a rule, affects the interest rate.
The fact is that the money that you put into an interest account is used by the bank for its own purposes - for which it pays you a reward in accordance with the rate. At the same time, it is important for the bank to know what amount and for what period it has, as well as what amount it must pay you in interest. Therefore, programs with flexible terms are often less profitable than deposits without replenishment and withdrawal.
On the accrual of interest
There are two interest calculation schemes used:
with capitalization,
without capitalization.
Capitalization is the accrual of interest income to the same deposit account where the money is. The income is added to the amount in the account, and the following interest is accrued from the new, increased amount. Consequently, programs with capitalization allow you to receive more income on interest.
If capitalization is not provided, then the interest income is transferred to a third-party bank account selected by the client. The advantage of this scheme is that the money can be used immediately.
The frequency of payments may vary:
1 time per month
1 time in 90 days,
at the end of the term.
Deposit programs are also distinguished by the type of rate, it can be fixed, variable or floating. Fixed is valid for the entire term of the agreement, variable depends on the investment period, floating - on market index indicators.