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Deposit agreement: let's read together
10 January, Monday
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One of the simplest and safest financial instruments to keep your savings from inflation, that is, the depreciation of money is a bank deposit. In order for the bank to accept your funds, you need to conclude an agreement with it. Let's understand the peculiarities of such a document using the example of a FUIB bank agreement.

How can you open a deposit in a bank and put money on it?

Thanks to the digital transformation of various spheres of our life, including the banking sector, you can open a deposit today online (using the website or mobile application) or by visiting a bank branch.

To conclude an agreement, you will need the following documents:

  • identity document;
  • registration number of the taxpayer card (if any);
  • other documents (if necessary).

The agreement will need to indicate the place of registration and your actual residence.

Everything that a bank representative will say will be reflected in the Comprehensive Banking Services Agreement (abbreviated as CBSA). Actually, joining the CBSA by signing the appropriate application and transferring the money to the bank will mean that you have placed a deposit in a banking institution.

P.S. Customer funds are credited to a special deposit account. The manager will indicate the total number of your account in the agreement. This is where you put your savings: using a wire transfer from a current account opened in FUIB.

CBSA allows the bank to provide customers with comprehensive banking services:

  • on opening and servicing card accounts;
  • issue of cards;
  • provision of consumer loans;
  • overdraft;
  • credit line;
  • usage of the "Internet banking" system;
  • services of raising funds for a deposit, etc.

You can choose all or some of the specific services provided by CBSA. One of them is placing a deposit.

Amount, terms, interest…

These three parameters are very important, so you should pay special attention to them when you conclude an agreement.

Pic. 1. Fragment of the APPLICATION for accession to the Agreement on Comprehensive Banking Services for Individuals

The minimum deposit amount, validity period, interest rate, and other conditions depend on which type of deposit you have chosen.

For example, consider the option shown in the pic. 1 when:

  • deposit amount – 500 UAH;
  • the interest rate on the deposit – 8.0% per annum;
  • payment of accrued interest will be made monthly;
  • the term for placing a deposit – 91 calendar days;
  • the automatic extension of the term for placing a deposit, replenishment, partial withdrawal, and early repayment of the deposit are not provided.

Consequently, with these parameters of the agreement, you place funds in the bank in the amount of 500 UAH for a period of three months – the last day of the deposit is reflected in your agreement (see the table, clause 4 "Term of placing the Deposit").

During the agreed period, the entire deposit amount will remain in the use of the banking institution, for which the bank pays you a monthly interest. These funds are credited to the account specified in the agreement (see clause 6 "Payment of accrued interest is made").

The peculiarity of the deposit, which we are considering in the example, is as follows – during its operation period, YOU CANNOT:

  • increase the amount (see clause 8 "Deposit replenishment")
  • partially withdraw funds (see clause 9 "Partial withdrawal of the Deposit")
  • return the deposit earlier than the term specified in the agreement (see clause 10 "Early repayment of the deposit")

Let's say you put 20,000 UAH on a deposit for 91 days (three months). It will not work to increase 20,000 during the agreement term, even by 1 UAH. Also, you will not be able to withdraw part or all of your deposit ahead of schedule (before the 91st day). The bank will return the entire deposit amount (in our example – 20,000 UAH) after the agreement expires (91 days). The money will be credited to your card account (see clause 7), and you can use it at your discretion – withdraw from the account or extend the validity of the deposit. How? We read the agreement in question (see clause 5): "The option to extend the term for placing a deposit automatically... can be activated by the Customer (that is, you) until the last day of the period for placing the deposit" (not including this day)*.

Attention! If you do not do this, the automatic renewal of the agreement will not occur (see clause 5).

*For example, the last (91st) day of the validity of your agreement falls on February 1, which means that you need to extend the term of the deposit automatically no later than January 31 (the 90th day).

What else can you ask the manager before signing an agreement with the bank?

Although PUMB bank has a small agreement, you may still have questions regarding its individual points. Therefore, we advise you to ask the bank manager. We have already talked about some questions, but there are others:

  • Where exactly on the bank’s website should you track messages, in particular, regarding changes in CBSA? This is stated in the agreement in the "Final clauses."
  • What changes can occur in the services provided to you by the bank?
  • What is the correct way to renew the deposit agreement automatically, and where to “activate” this function?
  • Where is it stated in the agreement that you must be familiar with the content of art. 26 of the Law of Ukraine, "On the system of guaranteeing deposits of individuals" regarding deposit guarantees? By the way, this is noted in the agreement in clause 4 of the section "Confirmation and assurance".

Also, ask the manager to tell you about the rules for using the payment card that the bank issues to the customer when signing the application for joining CBSA.

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