What are the advantages of bonds over deposits?
Posted: Sun Apr 20, 2025 8:52 am
If we talk about bank deposits, here we simply deposit a certain amount for a certain period of time on a deposit at a rate designated by the bank. Moreover, this rate can be paid only at the end of the term or monthly in accordance with the terms of the deposit. Most often, the client deposits funds into the account and “forgets” about them until the end of the deposit term. A significant advantage of all deposits is the existing insurance system, which applies to amounts up to 1.4 million rubles.
In the case of bonds, the investor must first choose a specific broker and open a brokerage account with them.
Read about what a brokerage account is and where to open one here .
You can read about which broker to choose for investments here .
But bonds have quite tangible advantages over deposits:
The interest rate on bonds is in most cases higher than the rates that banks promise for deposits;
The minimum investment amount for bonds is, for gambling data mexico the most part, 1,000 rubles. This is the denomination with which most of these securities are issued. While the threshold for opening a deposit with attractive interest rates can be much higher.
Bonds are more liquid . If you urgently need your money, then by closing a deposit, according to the terms of which the interest should have been cleared at the end of the term, you will not receive a profit. In the case of bonds, you have the opportunity to sell them at any time, and here there is the concept of accrued coupon income (ACI), which will provide you with a profit. That is, an investor who will buy a bond from you will also pay you ACI, namely, the part of the coupon corresponding to the period that you held the bond.
The term of bond circulation may vary - 1 year, 3 years, or 10 years. At the same time, you do not have to hold the bonds for the entire term, you can sell them earlier. In the case of deposits, as a rule, you need to hold the full term of the deposit to receive interest.
Possibility to purchase Federal Loan Bonds (OFZ). The issuer of these bonds is our state. They, just like other bonds, are not insured, but non-payment on these securities is possible only if serious financial problems arise at the level of our country. If such difficulties arise, then deposit insurance will not help. As a rule, the percentage of profit on these securities is still higher than interest rates in banks.
In the case of bonds, the investor must first choose a specific broker and open a brokerage account with them.
Read about what a brokerage account is and where to open one here .
You can read about which broker to choose for investments here .
But bonds have quite tangible advantages over deposits:
The interest rate on bonds is in most cases higher than the rates that banks promise for deposits;
The minimum investment amount for bonds is, for gambling data mexico the most part, 1,000 rubles. This is the denomination with which most of these securities are issued. While the threshold for opening a deposit with attractive interest rates can be much higher.
Bonds are more liquid . If you urgently need your money, then by closing a deposit, according to the terms of which the interest should have been cleared at the end of the term, you will not receive a profit. In the case of bonds, you have the opportunity to sell them at any time, and here there is the concept of accrued coupon income (ACI), which will provide you with a profit. That is, an investor who will buy a bond from you will also pay you ACI, namely, the part of the coupon corresponding to the period that you held the bond.
The term of bond circulation may vary - 1 year, 3 years, or 10 years. At the same time, you do not have to hold the bonds for the entire term, you can sell them earlier. In the case of deposits, as a rule, you need to hold the full term of the deposit to receive interest.
Possibility to purchase Federal Loan Bonds (OFZ). The issuer of these bonds is our state. They, just like other bonds, are not insured, but non-payment on these securities is possible only if serious financial problems arise at the level of our country. If such difficulties arise, then deposit insurance will not help. As a rule, the percentage of profit on these securities is still higher than interest rates in banks.