The Topic Of This Post
- Who is it useful for?
- Points of attention
- Interest and other costs
- Recurring errors
The savings deposit is also called a savings account. It differs from the current account because it is a real savings tool and does not allow operations other than the payment or withdrawal of sums.
A savings book is associated with the deposit account, which is the document on which all withdrawal and deposit operations are recorded.
The savings deposit is widely used for minors and can be turned on by the parents (one or both) in their favor, and in this case, the passbook is in the name of the minor.
In the savings deposit, the bank undertakes to return the sums deposited when requested.
The deposit account can be free or restricted. In the first case, the deposited sums are immediately available. In the second case, the money can only be withdrawn upon expiry of the established period (from 1 to 36 months), obtaining higher returns in exchange. If it is necessary to withdraw the money before the deadline, penalties must be paid which usually consist of the non-recognition of interest.
Who is it useful for?
To all those who want to save without taking particular risks.
Points of attention
It is a low-risk savings tool.
As with other banking contracts, in the case of contractual changes, the bank is obliged to propose the change (in the credit interest rate, commissions, and service charges) at least two months in advance employing a written communication called “Amendment proposal unilateral agreement “. If the customer does not agree with the changes, he or she may not accept the proposal, requesting the termination of the relationship with the bank, without the application of penalties or expenses.
Interest and other costs
The management of the deposit account has a cost that, as with all banking products, varies from bank to bank. Deposits in the name of minors can be free of opening and management fees. To these costs are added the payment of the stamp duty and the withholding tax on interest.
From 4 July 2017, it is no longer possible for banks and post offices to issue bearer savings books and their transfer is prohibited. December 31, 2018, was indicated as the deadline for withdrawing the sums deposited in bearer savings books. A fine has been foreseen in the event of failure to pay off by that date.
It is good to know that the money deposited on the deposit account benefits from the guarantee offered to all banks operating in the European Union by the Interbank Deposit Protection Fund and the Guarantee Fund for cooperative credit depositors. In the event of a bank crisis, and when the bail-in mechanism is applied, deposits are insured up to € 100,000 for each depositor. This limit is valid for each depositor, for each bank.
Often it happens to sign the deposit agreement without reading it carefully, held back by the effort of having to read and understand numerous clauses (actually it happens for all contracts!). Individuals are not able to correctly acquire and process all the available information (violation of the rationality of perceptions), if not using the so-called heuristics, mental shortcuts that simplify (only apparently) the decision-making problem and allow for quick decisions. and effortlessly.