Bank deposits in rubles, or **ruble deposits** from the point of view of the classic theory of finance, investment does not apply. This money market operation, instead of capital market. But on the other hand, contribution to the Bank in the national currency is a alternative to purchasing of securities, so we consider this project.

## Bank deposit in roubles

8-20%## AGAINST

- A guaranteed percentage.
- Deposits are protected by deposit insurance system.
- Fall protection of securities market.

## For

- The contribution rate may be lower per cent core inflation
- Ruble deposits are not protected from devaluation of the valûy
- Deposits guarantee may not work in a situation of systemic crisis.

## Overview of the instrument

### Ruble deposits is guaranteed yield

Unlike other tools, bank deposit guarantees an income. Really, credit organization, attracting money, undertakes economic risks and shall return to the client a certain amount in a specified period of time. This fully applies to such tools, as the ruble deposits.

At the same time, You must understand, that bank, drawing *ruble deposits*, the investor pays a nominal amount. How much will it cost this amount in another currency, that is real money — is not known in advance. At the same time, the banking rouble deposits if inﬂation, the only original, at the conclusion of the contract. How the national currency lose in price, It is not known in advance. Thus, the question of whether, that will be the end, remains open.

### Ruble deposits and Bank risk

The main risk for the investor on the market of bank deposits in rubles — a potential bankruptcy. In varying degrees, from this situation protects the investor deposit insurance. At the beginning of 2015 year in bankruptcy a private credit institution customers are guaranteed a refund of up to 1,4 million rubles.

Deposit guarantee system is actually a two-tier. Firstly, payments are protected by deposit insurance agency. Secondly, in the case of, If they money is not enough, There is hope for the support of the State — the CENTRAL BANK credits and miscellaneous.

However, it should be understood, that all these measures will work with the bankruptcy of one or more credit institutions. The system proves to be effective in the case of systemic banking crisis — unknown. And, a fortiori, hardly anyone will be able to accurately predict, as far as ruble deposits are protected in situations of economic collapse.

### How to calculate real income on deposit in roubles

Banks are interested in attracting ruble deposits. The point is that, that credit institution is essentially the same shop, which product instead buys and sells… money. Its purpose is to attract, that is, buy cheap and sell, i.e. give loaned, more expensive.

But this simple operation is carried out in specific economic conditions. Therefore, in fact, absolutely no fact, that clients, Open a ruble deposits, receive income, rather than loss. Try this to figure out the simple example.

Suppose, the deposit amount is 100 th. Br. The Bank promises to 10% p.a., and at the end of the term will pay the customer for more 10 th. Br. During the same period, Suppose, inflation was 7%. It would seem, the investor received a profit of percent. But in reality it is not so: After a year on his money he would be able to buy anything less than the percentage of inflation. Thus, net income is 10% – 7%, then there are 3%. And to be even more accurate, then the resulting percentage must be reduced, It must also make a correction for inflation. In a simplified version just, as banks, offering ruble deposits, charge interest on interest, but only in the opposite direction.

### Ruble deposits and currency exchange rates

Another approach to the calculation of profitability contribution in rubles — accounting for changes in the exchange rate of the national currency. Suppose, the Bank promises the same conditional 10% p.a.. If during the same period, the ruble will fall on 3%, the profit will be 7%, and if there is a devaluation of, and the national currency lose in price 15%, You can take it, that the investor turns out to be forced to fix the loss 5%.

It is not necessary to calculate net profit it is in us dollars: for the original starting point can be taken euro, Chinese Yuan or something else. Even more productive approach is to use a shopping cart, pool of stable currencies.

### When to invest money in rubles in the Bank

Ideally, the ruble bank deposit is a good tool then, When the national currency is stable, but there is no sign of economic growth. If the growth is, It's worth thinking about the more risky and simultaneously more profitable investments in securities. A bank deposit is a kind of safe haven, a certain refuge in unstable environments. And, of course, opportunity to earn something in free cash balances, that are on the accounts as a result of the chosen investment strategy.

## Calculation of income

There are two formulas for calculating income for rublevomu contribution: with simple interest and complex, that is when interest is calculated on the interest.

### Simple interest

In general terms, the formula looks like this:

where Sp-sum income, I-annual percentage rate, t is the period in days, K is the number of days in a calendar year, can be either 365, either 366,

P-the amount, placed in the contribution.

### Compound interest

Compound interest formula is used then, When income is paid to certain intervals of time, rather than at the end of the period, for example, monthly or quarterly.

In General, the compound interest formula looks like this:

where S – amount of income, (P) – bank deposit amount, I is the interest rate per annum, j-periodic term, through which are accrued and capitalized interest in days, K is the number of days in a calendar year, n is the number of periods for the entire duration of the, When the accrual and interest capitalization.

Someone else keeps savings in rubles? The situation today, in my opinion, clearly shows the inconsistency of the Russian currency and its unreliability.

B contribution to the moment remains a risky business. And it's not just choosing a bank , but the constant inflation which eats the interest on deposit. It turns out that the contribution remains priumnožaûŝim your savings , but simply maintain their .