One more product issued by banks to raise public funds that you must understand, namely deposits. What distinguishes this one product from two other types of products, savings and current accounts, is the issue of disbursement which has a certain time. Withdrawals outside of this time will only pose a risk to you, in the form of penalties or deductions from the money you have deposited in deposits.
First, as stated, funds in deposits can only be disbursed after the term of the agreement has ended or is known as maturity. These past due deposits can be extended automatically.
Generally deposits have a period of 1,3,6, 12, up to 24 months. Finally, you can choose whether to deposit your funds in rupiah or foreign currency.
With a certain period of time, the benefits that can be obtained when opening a deposit account can be greater than the current account or ordinary savings.
Here are some of the benefits of deposit period:
a) Can Be Guaranteed
One difficulty in finding a loan or credit is the absence of collateral that can be pledged. By having a deposit, you can make his account as a loan guarantee.
b) Higher Interest
If the usual savings interest is only around 0.5-2 percent per year, you will get higher interest when choosing to save funds on deposit. You can get an interest index of around 5-7 percent per year.
c) Planned Management
You can better manage your finances with deposit products because the funds saved are prepared for the medium and long term. The funds that you have saved can be calculated with interest to meet your plans some time in the future.
d) Guaranteed Deposit Insurance Institutions
No need to worry that your money will disappear when the bank where you deposit your funds go bankrupt. All your stored funds will be guaranteed by the Deposit Insurance Corporation. However, there is a maximum value that can be guaranteed, which is IDR 2 billion. Funds that exceed this number will not be guaranteed.
One of the three functions of a bank that is very helpful to the community is the provision of credit. This one bank product allows a person or business entity to buy the product and pay for it within a certain period. Provisions regarding bank credit products have even been listed in Act Number 7 of 1992, as amended by Act Number 10 of 1998.
Each credit has characteristics that can never be separated, namely there is a period of time, agreed interest rates, payment methods, guarantees, administrative costs, to life insurance and bills made in anticipation in the event of bad credit or the borrower dies. All of these characteristics are made to maximize the benefits that can be obtained from this one banking product.
Here are some of the benefits of credit for the community.
Encourage economic growth and expansion,
Reducing the unemployment rate,
Increase community income,
Providing a sense of security,
Become venture capital,
Various service products are also presented by banks to carry out their functions. These services range from money transfers, payments, purchases, to billing. Examples are transfer services, insurance payments, internet credit purchases, to electricity billing. All of that can be served with ATM products, SMS Banking, Internet Banking, Mobile Banking, or direct transactions through tellers.
There are several benefits that can be obtained by using banking services compared to manual transactions.
First, transactions with bank services only require a very short time to complete. This is because these services have been supported by an online system.
Second, transactions can be done at any time. Because through the online system, you don’t need to worry that the bank is closed when you want to transact. Simply using an ATM or mobile banking, you can also make transfers, payments, purchases, and even pay bills.
Third, transactions are safer. Each of your activities that use bank services requires a PIN to verify it. This makes your transaction safer because it’s only you.