Our readers often reach out to the editorial office with questions about bank deposits: whether it's worth opening a deposit, how not to lose the interest, and which currency to keep savings in. We asked an expert, the head of the retail sales department of Banking Services Center No. 319 in Zhitkovichi of the Regional Directorate for the Gomel Region of Belagroprombank JSC, Svetlana Zhogal, to walk us through the most common situations.

— Many people believe that keeping money at home is easier and safer. Why open a deposit at all?

— Psychologically, we do feel calmer when we have cash on hand. But from a financial standpoint, a deposit solves two tasks at once. The first is protecting your savings from the temptation to spend them on impulse purchases. The second is passive income. Even at a modest interest rate, your money is working rather than just sitting there. Besides, a bank deposit is insured by the state, which is far more reliable than a home "hideaway."

— They say interest is interest, but how do you calculate it correctly? Are there any pitfalls?

— The most important thing that many people forget about is capitalization. If you allow the bank not to pay out the interest to you in cash but to add it to the principal of the deposit, then next month the interest will be calculated on a larger sum. This is what "compound interest" means. Also, always pay attention to the type of deposit: an irrevocable one offers a higher rate, but you cannot withdraw the money before the term ends without losing the interest. A revocable one has a lower rate, but you can take your savings out at any time.

— If I'm saving for my child's education or home renovation and I know the exact date, which option should I choose?

— In that case, the most logical choice is an irrevocable deposit. You know for sure that the money will be needed, say, in August. So you can leave it for six months or a year, get the maximum rate, and not worry about wanting to withdraw it early. This is one of the most advantageous scenarios.

— Do I have to go to the bank to get the interest?

— Not at all. Today, most operations can be done online. The interest is simply credited to your deposit account. You can either leave it there for capitalization or set up an automatic transfer to your card at the same bank. This can be done through the mobile app in a couple of minutes — no need to visit a branch.

— Which currency should I choose? Traditionally, the advice is the dollar or the euro, but there's been a lot of talk about the yuan and the Russian ruble.

— The choice of currency depends on your goals. If you plan to spend money within the country, the Belarusian ruble is more convenient — you won't lose anything on conversion. Dollars and euros are suitable for long-term savings, especially if you're comparing rates against inflation. Lately, many people have been diversifying their savings and opening deposits in Russian rubles or yuan — this helps spread the risks. The main thing is not to put all your eggs in one basket, even if it seems like the exchange rate is stable now.

— What else should you pay attention to before opening an agreement?

— A smart approach to a deposit is a strategy, not a chase after the highest number on an advertising banner. Evaluate three things. First: do you need the ability to make additional contributions — even small regular deposits significantly increase the final amount. Second: are you willing to give up early withdrawal in exchange for a higher rate. Third: how important is online access to your account for you, so you can monitor everything without visiting the bank.

— Where is it easiest to open a deposit without wasting time?

— When it comes to time, the most convenient option is a mobile app. You sit at home or at work, choose the parameters, fill out the application, and the deposit is opened. It's not tied to office hours. But if you need a personal consultation, you can always visit a branch — they'll calculate your income in detail based on your specific situation.

A brief reference for those who have decided to take a closer look

Most banks today offer deposits in five main currencies. Minimum amounts and terms vary. For a preliminary income calculation, it's convenient to use the online calculator on the bank's website, and all the exact terms are обязательно specified in the agreement. If you have any questions, the contact center is available.

Svetlana SEVOSTYANOVA

Photo from open internet sources