Bank deposit

What is a bank deposit?

A bank deposit is a type of savings plan in which the customer deposits money in the bank for a predefined period, and receives interest on the deposited money in return.

There are different types of bank deposit, such as a short-term deposit (for instance a daily or weekly deposit), a long-term deposit, a fixed-rate deposit or a variable-rate deposit, and so forth.

The terms and benefits of each deposit vary based on the type, among, and term of the deposit.

What are the advantages of a bank deposit?

 

• Yield: A deposit with a fixed interest rate gives you certainty with regard to how much you will receive when the deposit matures.  When the deposit carries a variable rate, the interest that you receive depends on the Bank of Israel interest rate, and may vary during the deposit period.
• Liquidity: There are deposit types that enable withdrawals at predefined exit points or early withdrawal. (Note: Early withdrawal may come with a penalty.)
• Fast and easy: Putting money into a deposit is a relatively simple process, and does not require in-depth financial knowledge.
• Flexibility: There are various deposit types available so that you can choose the deposit that best suits your personal needs.

How do you make a bank deposit?

You can make a deposit through your bank branch, the bank's website, or the bank's mobile application.  You will need to choose the amount of the investment, the deposit period, and the type of interest (fixed or variable), etc.

Remember! - You can put money into a deposit at any bank, not only the one where you manage an account.  It is recommended to check the interest rates and deposit terms at other banks, and make the deposit at the bank that offers the optimal conditions for you.

What else is it worthwhile to know about a bank deposit?

 

• When you are offered an interest rate, it is worthwhile to negotiate over the terms of the various products, including with other banks.  You can frequently get better terms through negotiation, and thereby increase your profits.
• You don't need to go to the branch in order to negotiation.  You can contact a banker through the bank's mobile application, website, or call center.
• Before depositing your money, it is worth noting the terms of withdrawal from the deposit that you have chosen.  There are often limitations on early withdrawals from deposits.