When choosing a bank to conclude a deposit agreement, a potential depositor has to compare several parameters: the interest rate, the placement period, the frequency of interest, the possibility of innovation, the conditions for the early closure of the contract. The client also often hears from a bank specialist's concept " capitalization of contribution"And" capitalization of interest" What is it and what benefit from such deposits does the client receive?

Capitalization of contribution

Capitalization of contribution - This is an increase in the initial amount of accrued interest. At the same time, in the next period, interest are accrued on the initially attached cash. Upon expiration of the contract, the Bank simply lists the principal amount and accrued interest on the current or card account.

The contract may also provide for automatic extension of the contribution with capitalization. This means that in the case when the depositor does not turn to the bank on the end of the contract, it is automatically extended for the same period, and interest will be attached to the amount of investment.

It implies the addition of accrued, according to the contract, interest to the principal amount of the contribution. Percentage accrual for the next period is already carried out on an increased deposit amount. Thus, a formula of complex interest is used, which allows the depositor to receive an additional income.

The contract must indicate the periodicity of capitalization, namely:

• Annual capitalization. This option is rarely used, only with long-term deposits.
• Quarterly capitalization. Interest are accrued and joined to the initial deposit amount after 3 months, quarter or years after the opening of the contract. Such capitalization will bring more income to the depositor than the first option.
• Monthly capitalization - interest joins the principal amount of the contribution at the end of each month. Such a scheme is the most common from banks and uses good demand from depositors.
• The highest income brings daily capitalization, but it is not used by Russian banks.

The general formula for calculating income during capitalization is as follows:

K \u003d s * (1 + r / m) m * n, where

To - the total amount that the client will receive at the end of the contract;

S is the initial amount of investment;

r is the annual interest rate;

m is the number of calculation periods, that is, with a semi-annual capitalization M \u003d 2, with a monthly m \u003d 12.

n is the number of years.

For example, the contributor wants to put money in a bank in the amount of 100,000 rubles for 1 year under 10% per annum. If the terms of the contract do not provide for the capitalization of interest, then at the end of the term he will receive:

100 000 + 100 000 * 0.1 \u003d 110 000 rubles.

If the borrower takes interest and again marks money for two years, then in three years its income will be:

10 000 * 3 \u003d 30 000 rubles

In quarterly capitalization Calculation of profits for three years will look like this:

100 000*(1+0,1/2) 4*3 = 134 488,88

Thus, the client will receive an income of 34,488,88 rubles

With monthly capitalization, the calculation is done like this:

100 000*(1+0,1/12) 12*3 = 134 818,2

Clean income of the contributor will be 34,818.2

Thus, it is clear from the example that the more often the capitalization is being made, the higher the income of the depositor.

To quickly calculate the profit from the bank deposit, you can use our online cash profitability calculator.

How to choose a contribution?

Interest rates on deposits with capitalization and without it differ. To compare the profitability of a particular banking offer, it is necessary to compare an effective bet.

For example, if you place 100,000 at 10% per year, but with a monthly capitalization, then the income will be:

100000*(1+0,1/12) 12*1 = 110 471,3

To get the same income, but without the capitalization of interest, the annual interest rate should be:

110471.3 / 100000 \u003d 1,105 or 10.5% per annum.

Deposits with interest capitalization are interesting to depositors, the main goal of which is to obtain maximum income. But the profitability of the contribution should be assessed from the point of view of an efficient rate. Banks very often apply deposits with capitalization for marketing purposes, and in fact, ordinary deposits bring to depositor greater benefits.

It is worth paying attention to deposits with capitalization when cash is planned for a long time (several years) without annual appeal to the bank to renew the contract. Thus, often accumulate the necessary amount to a specific date.

When is not profitable?

Capitalization is interesting, first of all, with long-term placement of funds. The usual accrual will be more convenient in the following cases:

1. The client wants to get percentage every month, considering them as a regular additional income.
2. For the client, the possibility of early termination of the contract or partial removal is important. Such banking programs usually do not suggest capitalization.

An additional significant advantage of capitalization of interest It is that after their connection to the principal amount, they fall under the deposit insurance system. The main condition - capitalization must be carried out before the date of the occurrence of the insured event. The percentages that were accrued, but not capitalized and are not paid to the depositor, may be lost in the event of financial problems of the bank.

To tell what kind of banking and that interest is accrued to it, the modern adult does not need to be. Moreover, many of us are excellent in deposit using a simple calculator. However, before simple arithmetic often leaves. Although to calculate the complex percentage - it is precisely how often the capitalization, calculator and sheet of paper are also defined. However, our tendency to simple solutions is pretended to understand the benefit of capitalization. But let's try to objectively understand the situation.

How is the capitalization of interest on the deposit calculation?

The capitalization of interest is the addition to the percentage calculated on the initial principal amount, interest accumulated on previous deposit periods. This system arose a few centuries ago, has been popular with experienced investors, and then it became massively offered by banks. It allows the income of the depositor to grow faster than when using simple interest accrual, which are calculated only on the principal amount.

• at the contribution of 1000 rubles, simple interest was charged at a rate of 10% - by the end of the year, the depository belongs to 1100 rubles;
• for the second year, at the same rate, its contribution will grow by another 100 rubles and will be equal to 1,200 rubles.

But if interest in the second year were charged on the principal amount, and percentages for the first year, then at the end of the second year, the depositor would already be:

• 1000 + 10% = 1100;
• 1100 + 10% = 1210.

The result is obvious - 1200 rubles against 1210.

The difference of 10 rubles is achieved without any effort of the fund owner, only at the expense of another interest rate system.

The benefit of capitalization of interest on the deposit

The benefit of capitalization can be seen already in the previous example, but to understand the scale of this benefit we present the calculation of the contribution of 100 thousand rubles, respectively, with simple interest and with capitalization:

The difference of 12 thousand 889 rubles speaks for itself.

Moreover! The rate with which income grows with a difficult percentage depends on the capitalization frequency; The higher the number of periods of recalculation, the more final income. If you recalculate interest more than once a year, and once a month, then the surplus income from capitalization will increase. With a weekly or daily capitalization, it will grow even faster.

Top the same amount of 100 thousand rubles under 10% per annum, and put it into account with the monthly capitalization (for the sake of saving place we will see only the first 3 years):

The difference compared to the simple interest accrual is 20 thousand 590 rubles, compared with the annual capitalization - 19 thousand 827 rubles.

It is difficult to believe that the change in the order of interest accrual can give such a difference, but each of the numbers given in the table can be counted manually.

What conclusions from this follow? Main two:

1. Capitalization brings a tangible additional income, especially with considerable deposit terms.
2. Capitalization is the result of an accurate calculation, even small changes in the source digits repeatedly change the result.

At the last moment it is worth paying attention because we often "pretend in mind" the future result, and then we specify by the calculations. But complex mathematical actions are little suitable for rapid, exemplary conclusions.

The most important benefits of capitalization have already been demonstrated in the previous section. It offers noticeable income without additional effort and investment. Capitalization has great importance for long-term investments and little noticeable with short-term deposits.

You can add the opinion of authorities to this: Albert Einstein spoke about a difficult percentage of both about the "greatest mathematical discovery in the history of mankind," and Rothschild considered it "8 miracle of the world." The latter certainly sacromanized, as he earned on a difficult percentage noticeably more than someone before him on seven other wonders.

However, the minuses and difficulties of capitalization also have:

1. Contribution with frequent capitalization and without restrictions to find. The effect of capitalization can be a discovery for an ordinary depositor, but not for the bank. Credit institutions are not at all inclined to pay more expected by customers, they will rather increase the bet of a simple percentage, which will be bright advertising for the deposit, which will offer a complex percentage, especially for long-term investments.
2. Contribution with capitalization is more difficult to shoot. Here the effect is already psychological. The benefit of capitalization increases gradually. The longer the deposit is in the bank, the more he brings the owner. Therefore, to touch the principal amount of the contribution and even percent is becoming harder.

The most favorable deposits with capitalization

To assess the real benefit from the deposit with capitalization, it is better to navigate not on the annual interest rate, but to the interest plan for interest in real monetary units.

Also useful may be a contributional calculator with capitalization, these programs are often offered by banks themselves and websites with financial subjects.

Especially profitable, with other things being equal, will be the capitalization of interest.

It is important that all accrued interest and additionally paid funds as soon as possible have become the basis for the accrual of new interest. So that capitalization occurred as often as possible. Such proposals on the credit market are found, sometimes banks promise even daily capitalization. If the proposed benefit is not compensated by some restrictions and commissions, the deposit deserves attention.

Making the deposit agreement in the bank, the first thing that the client is interested is the interest rate and the terms of interest accrual. One such conditions can be the capitalization of interest on the contribution, the capitalization of the contribution. A similar service offers a majority of Russian credit institutions, including a savings bank. Capitalization of the Deposit in Sberbank is an opportunity to increase its accumulations by calculating the amount of interest to fixed assets and further accrual interest on the total (enlarged) amount. At any time, the client has the right to disable the option, in this case the accrued interest will be paid every month.

Capitalization varieties

The capitalization of interest on the account in Sberbank depends on the conditions on the deposit, which differ in the terms of charges on the amount of the contract and the possibility of receiving the balance to the balance mainly:

• One-time. Interest is charged once after the expiration of the agreement signed with the Bank, provided that the deposit prolongation is carried out. This is a small trick of a credit institution that encourages customers to leave their funds on the balance sheet;
• Daily. Accruals are made every day. In this case, in this case, the amount of capital should grow with space speed, but usually the percent size is so small that with a slight amount of the deposit you will not even feel that you get some profit;
• Monthly. The most popular option, percentages are added to the contribution every month, you can use for short-term investments for a period of three or six months;
• Quarterly. Accruals are held once a quarter. The ideal option for investors who made a deposit of three to twelve months;
• Semi-annual. Used very rarely, percentages are charged once every six months;
• Annual. Suitable for long-term deposits for a period of two to five years. Profitable only for solid investments.

The capitalization option makes it possible to make a profit from its savings. Actually, for this it is provided.

Programs from Sberbank

Savings bank offers its customers several tariff plans for bringing their income. Consider the most popular of them:

The main part of the deposit rate of the savings bank implies the possibility of using capitalization. In the description, the interest rate is indicated in the maximum amount, it depends on the amount of the contribution and the term of the agreement.

To open the deposit, it is necessary:

• Visit the nearest division of a savings bank (with it necessary to have a passport of a citizen of the Russian Federation);
• Take in the terminal Calon in the direction of "Open Contribution;
• Choose a suitable tariff plan;
• Carefully read the terms and rights / responsibilities of the parties, sign an agreement with the Bank;
• Make the amount at the receipt order, pick up the savings book.

Active Internet users can open a contribution online by using Internet banking by moving the required amount from a credit card or a settlement account. Through Sberbank online can be managed by all accounts, to access the personal account: go through the registration procedure on the site, get an identifier and password. Entering the LC, find the "Open Contribution" section, select the appropriate option and fill out the form. When opening the deposit, the Bank offers the Client higher interest rates.

In order to calculate possible profits, use the online calculator, it can be found on the official website of the credit institution. It is enough to set several parameters, such as deposit size, time. The system will automatically make a calculation, and you can find out the approximate amount of payments for the concluded contract.

Benefit from capitalization

Capitalization of interest on the account is undoubtedly beneficial, since it makes it possible to increase the profitability of the contribution in Sberbank. Also, the benefits of service can be attributed to the fact that the client does not need every month to visit the bank branch for interest.

Capitalization of the Deposit Deposit in Sberbank is a chance to increase their accumulations several times. No additional documentation for connecting such an option is required. If this service is provided in the program, then interest will be accrued automatically.

Video about the principle of complex interest on which the essence of capitalization is being built:

The modern banking system consists of a variety of banks. Banks other than their own funds also work at the expense of the funds attracted, that is, due to contributions. Available funds both individuals and legal entities can be involved, but the activity of attracting and the proposed interest rates will directly depend on the demand of the Bank in additional funds. The types of deposits are many, but the most profitable for the client is the investment of funds in which there is a capitalization of interest on the contribution. Choosing a suitable type of deposit, you need to clearly understand what is the capitalization of the contribution and the capitalization of interest on the contribution. The capitalization of the contribution is an increase in its amount to the amount of accrued interest. Usually, when contributing, a separate deposit account opens, on which the amount is taken into account. Depending on the conditions for placing the contribution, interest can be accrued at the end of the term, monthly, quarterly and even once a year. When capitalizing the contribution, accrued interest will be added to the amount of the contribution, which at the end of its term will be transferred to the current account of the depositor. Interest in capitalization of the contribution is calculated each time on the extent of the original amount, therefore do not increase over time. In the case of placing funds with such an opportunity as a capitalization of interest on the contribution, accrued interest is not simply added to the deposit amount, but are involved in the next accrual. Thus, with each following accrual, the deposit amount increases by the amount of accrued interest. As a result, interest is accrued to interest, which significantly increases the effective contribution rate. At the deposit, it is due to this feature and advertised by all banks in which there is a similar type of deposit.

The advantage of the contribution with the capitalization of interest is a higher level of income compared to deposits with a periodic payment of interest. Such revenue accommodation of free funds choose customers who do not want or can not make accrued interest monthly.

Annual interest rates on deposits with capitalization of interest are usually lower than in deposits with interest payments at the end of the term, but higher than on deposits with their periodic payment. The reason for this is in the confidence of the Bank in the fact that the amount of time specified in its disposal will be at its disposal.

The timing of posting deposits with capitalization of interest differ depending on the bank, but usually amount to 1 year. The placement of the contribution for a shorter term is inappropriate, since the capitalization of interest will be insignificant and practically inconspicuous. The only exception is deposits on very large sums.

Typically, the capitalization of interest due to the software used by the software occurs automatically, so it makes no sense to check the correctness of the accrual. But if desired, it can be done, you should only take into account that interest accrual occurs from the day following the day of deposit placement. If desired, you can even make a capitalization on your own. For this, it is deployed with the possibility of replenishment and periodic payment of interest. The accrued and paid amount of interest, the client can independently make as a result of which will receive almost the same capitalization of interest.

In addition to the capitalization of the contribution and interest, there is also such a concept as a subtle capitalization. It has no relation to the field of deposits, touching more capital firms and companies. Thin or insufficient capitalization implies that the company is mainly not at the expense of its own funds, but by attracted or borrowed.

Optimize deposits through capitalization

Capitalization of deposits - what, where, when?

During the period of economic instability, the issue of saving funds is particularly acute. In a practical economy there are enough methods to ensure the safety of savings. One way is to contribute to credit and financial organizations -, fund or. At the same time, depositors do not always fully understand the procedure for accrual interest on the contribution. Although, I think that all readers have heard of such a thing as capitalization of deposits.

As a rule, an ordinary person expects that all the necessary information he can get from the bank employee. But employees of credit \\ investment organizations are more interested in benefit, so the information may not be accurate enough to select the most profitable offer. In this article, let's talk about capitalization, but not only in bank deposits, the material will be relevant for other financial instruments (investments in MFIs, PDAs, Highypes, fixed income instruments).

What is the capitalization of the contribution

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In simple language, capitalization is when interest accrued for a certain period are summed up with the body of investment.

In the line of banking products, two types can be distinguished: capitalization of interest on the contribution and capitalization of the contribution. The main difference is that during the capitalization of the contribution, interest accrual is carried out on the amount of the initial deposit. Interest on the deposit are charged either at the end of the deposit period, or immediately paid to the depositor.

With capitalization of interest on the contribution, interest income is also charged on the amount of the deposit, but immediately adds to the body of the deposit. If we talk about bank deposits, then capitalization occurs monthly. Accordingly, the deposit increases, and the subsequent interest accrual is made every time the increasing amount. So The income increases due to the accrued interest, ensuring the contribution of higher investment efficiency. Such deposits are also called.

Types of deposits with percent capitalization

Deposits with capitalization of interest differ in terms. I will give the most common examples:

• capitalization at the end of the deposit period;

Represents a normal contribution with simple interest. It is advantageous only in the case of a prolongation of the contract (if we talk about the banking contribution) when the contribution itself is also on the deposit, and interest accrued on it;

• annual capitalization of interest on the contribution;

• quarterly capitalization of interest;

Contribution with such a scheme of accrual has an average yield in the line of proposed schemes.

• deposits with monthly capitalization of interest;

The most popular scheme among bank deposits.

• weekly and daily capitalization of interest;

Most often this scheme is used.

It is necessary to distinguish the frequency of interest accrual for the contribution and the frequency of their capitalization. For example, an investment tool can accrue interest daily, but their capitalization is carried out monthly.

Formula of capitalization in deposit

To evaluate the effectiveness of the contribution with the capitalization of interest, compare its profitability with the profitability of the usual contribution. To do this, consider the annual deposit of 10,000 rubles with a bet of 10% per annum.

The yield under the usual accrual scheme, that is, when accrued by simple interest, will be:

0.1 x 10 000 \u003d 1 000 rubles.

Consider the profitability of the contribution with similar input conditions, but with monthly capitalization:

• in the first month, the size of the accrued interest will be 10,000 x 31/365 x 0.1 \u003d 84.93 rubles, and the deposit amount, respectively - 10,084.93 rubles;
• the percentage of the deposit for the second month will be 10 084.93 x 30/365 x 0.1 \u003d 82.89 rubles, and the deposit amount becomes equal to 10167.82 rubles;
• similarly calculated the third month. The percentage of the deposit will be 10 167.82 x 31/365 x 0.1 \u003d 86.36, and the deposit amount will increase to 10,254.18 rubles.

For other periods, accruals are made according to the same formula. The final amount per year is 11,047, 13 rubles. Thus, the profitability of this deposit was 1,047.13 rubles, which exceeds the yield on the usual deposit by 47.13 rubles. Obviously, the choice of a larger deposit period or its amount will give a greater increase in profitability.

In addition, the larger the number of interest periods of interest on deposits with capitalization, the more profitable contribution. That is, for example, the contribution with the monthly capitalization has a higher yield than the contribution with the capitalization of quarterly.

Whether capitalization is favorable

Having considered contributions with simple and complex percentages, it would seem that it is possible to conclude that deposits with percentage capitalization are preferable for investors. However, bank deposits with simple interest on statistics are more popular.

A large number of bank customers prefer to receive interest from deposits as regular income, and not accumulate them for a long time. Also often conditions of deposits with capitalization do not allow partial removal of funds during the placement period. For investors the opportunity to dispose of their money without losing interest in the event of unforeseen difficulties is decisive when choosing. In addition, most banks offer contributions with capitalization to a percentage of less than deposits with simple interest. The difference can be 0.5-1% - this percentage additionally to the contribution gives capitalization.

When choosing a deposit offer, it is necessary to proceed from the current material situation of the depositor. It should be clear whether money can be required during the deposit period. If not, you can choose a contribution having a maximum efficient rate provided, including percentage of percentage. In the absence of such confidence, you should choose from deposits with the possibility of partial removal. By the way, I usually recognize the most profitable topical proposal of the banks, I can also recommend blogbankir.ru blog, where you can find the most profitable offers.