Important Points:
- A deposit is a bank savings account that can only be withdrawn after a certain period agreed upon by the customer and the bank.
- The duration for holding a deposit varies, generally ranging from 1, 3, 6, to 12 months.
- Types of deposits: rupiah deposits and foreign currency deposits. Both are available on the digibank by DBS app, a trusted banking platform.
- Benefits of deposits: relatively low risk, income per term, and high interest rates.
Want to start your investment journey with more confidence?
Deposit investment can be the right choice for those of you who want to prepare more financially in the future. This investment instrument is indeed fairly safe and suitable for those of you who don't want to take big risks. In addition, this investment is also suitable for those of you who are beginners.
Deposits are often considered the same as savings but there are many differences in them. Let's find out more about what exactly is a deposit, what are the various types, and what kind of benefits you will get from this investment.
What is a Deposit?
Deposits are savings in a bank where withdrawals can only be made within a certain period of time. This product is offered by the bank with a special withdrawal agreement. Withdrawals can only be made at the agreed time between the customer and the bank.
You will deposit a certain amount of money with the bank. Then you will agree on a period of time to keep the money in the form of a deposit. If the maturity date has arrived, then you can only withdraw the funds.
Time Deposit Period
Before you invest in a time deposit, you must first know how long the time period for keeping funds there is. Actually, this time period is very diverse and you can choose according to your personal wishes. Generally, banks will offer deposit periods ranging from 1, 3, 6, to 12 months.
After you choose the deposit period, you will not be able to withdraw the funds until the time comes. You can only receive all the funds if it is due or the deposit period ends.
Types of Deposits
Are you interested in investing through time deposits? Well, now let's find out first what are the types of deposits themselves. Here are 2 types of deposits that you can choose according to your needs.
- Rupiah Deposit
First, there is a type of Rupiah deposit that uses a money storage system with a certain period of time. Withdrawal of this deposit is made according to the period that has been agreed upon between the bank and the customer. It can range from a period of 1 to 12 months.
This type of deposit will be held in the name of the individual or institution listed on the bill of deposit, who has the right to withdraw the funds. After maturity, customers can choose to repeat the deposit with a new interest rate, repeat the deposit and withdraw the interest earned, or withdraw all funds to the customer's account.
- Foreign Currency Deposits
Foreign currency deposits (Forex) are term deposits in various foreign currencies, such as US dollars or euros, with a system similar to conventional deposits but offering higher interest rates.
Its main advantage is protection against fluctuations in the rupiah exchange rate. So, by saving Foreign currency deposits (Forex) are term deposits in various foreign currencies, such as US dollars or euros, with a system similar to conventional deposits but offering higher interest rates.
The main advantage is protection against fluctuations in the rupiah exchange rate. So, by saving money in foreign currencies, you can preserve the value of your assets from adverse exchange rate changes.
Foreign currency (Forex) deposits are term deposits with a wide selection of foreign currencies to create a deposit account with the same rules and systems as conventional deposits but with higher interest rates.
Forex deposits are similar to rupiah-denominated deposits, but have the major advantage of protection against fluctuations in the rupiah exchange rate. By placing funds in foreign currencies such as US dollars or euros, this investment can secure the value of assets from potentially unfavorable exchange rate changes.
Benefits of Deposit
What makes this deposit investment worth choosing? Here are some of the benefits of time deposits that might convince you to invest your money there.
- Income per tenor
If you save money in the form of a deposit, you can receive income per tenor. The tenor itself is the maturity time that you have agreed beforehand with the bank. So during that period of time you can get profits that will be transferred directly to your account.
This is one of the reasons why many people are interested in having a time deposit. They can benefit from the income per tenor without having to take the deposited funds. So their funds remain safely stored in their deposits.
- Relatively Low Risk
In terms of risk, time deposits are known as the lowest risk investment. When compared to other investment instruments such as mutual funds and stocks, this is definitely the safest option. So if you're a conservative investor, it's better to choose this instrument instead.
Moreover, through this deposit, you don't need to think much. You just need to choose the best bank to deposit your money. Furthermore, the funds that you have deposited earlier are simply left alone until the agreed period of time.
- Higher Interest than Regular Savings
Many people ask what's the difference between a deposit and a regular savings account because the concept seems the same. Deposits are clearly different because the interest offered by the bank is usually higher. The total interest you will get from a deposit can be much greater than the interest on ordinary savings from the bank.
Tips for Choosing a Deposit
If you are sure you want to save your funds in the form of a deposit, then make sure you choose a deposit at the right bank. This choice really determines the benefits you will get later. If you just choose, then you might even have to bear losses.
First of all, obviously you have to make sure your choice of bank is trusted and reliable. Make sure the bank you choose meets the qualification standards set by Bank Indonesia. In addition, the bank must also have a healthy financial record so that your deposit is stored safely.
Don't forget to also consider the choice of time period and the amount of interest you will receive. The value of this interest must obviously be considered because it greatly affects the total return on your investment later. Make sure you can get optimal benefits from the investment results.
You can start investing in deposits with the best investment application, digibank by DBS. Here there are various investment facilities that you can enjoy. With digibank by DBS App, you can get the right investment recommendations from a world-class team.
Moreover, you can also find more than 120 curated investment products that you can rely on in the future. If you are in doubt, digibank Advisors who are experts and certified will provide recommendations and investment strategies that suit your risk profile, market conditions, and other factors. All investment steps can also be accessed 24 hours a day through the digibank by DBS App.
Come on, don't delay to start deposit investment with digibank by DBS App. You can click here to start your investment journey. Immediately set up an effective strategy so that you can achieve your desired financial goals as soon as possible!
