difference between agreed deposits and agreed deposits
1. Different targets
There is no specific target for agreed deposits, and any customer can handle this deposit project as long as the amount deposited meets the requirements of the bank. Agreement deposits are specifically for special funds, including social security and insurance.
2. The term of deposit is different
The term of agreed deposit is short, generally speaking, it will not exceed one year, and it can be withdrawn in advance. Agreement deposits have a long term, usually starting in 2-3 years, or even several years, and cannot be withdrawn in advance.
3. Different interest-bearing methods
The interest-bearing method for agreed deposits is quite special, and it is divided into two parts. The first part is the deposit amount set by both the customer and the bank, and the interest is calculated according to the current interest rate. The second part is the balance that exceeds the quota, and the interest is calculated at the interest rate agreed by both parties. The interest-bearing method of agreement deposit is relatively simple. Before deposit, the bank and the customer agree on the interest rate, and after the deposit period ends, the interest can be calculated according to the agreed interest rate.
4. Different functions
Agreement deposit is an ordinary deposit item, which has no other functions except generating interest for daily settlement. Agreement deposits can not only generate interest, but also be used for financing loans.