What is a deposit?
Is a deposit the same as saving?
‘Deposit’ is not a Serbian word, but it is very familiar to those of us who save with ProCredit Bank because the interest on our savings brings in earnings, regardless of whether our savings are in the RSD or EUR currency. There are various types of deposits, and experience shows that the best type of savings is one that is insured. What’s more, it is important to consider the stability of the operations of the bank you choose to save with.
So, most often, a deposit is the money we place onto an account held with a bank, either in RSD or EUR currencies, in the form of either a term deposit or FlexSave.
Are bank deposits safe?
Before we decide, those of us who save, we ask ourselves about the security of a particular bank before deciding to deposit our money, only then do we ask ourselves how much we will be able to earn. We at ProCredit Bank are proud of the fact that for over two decades now, the amount of time we have been present on the Serbian market, continue to win over and maintain the trust of our savers. We have done this by operating with stability and responsibly, by duly fulfilling all of our obligations towards our clients.
What is an insured deposit?
All of the 22 banks that are currently operating in Serbia have received a licence to operate issued by the National Bank of Serbia. This means they are obliged by law to insure deposits, that is, to regularly pay an insurance premium to the Deposit Insurance Agency. Insured deposits are all RSD and FX receivables that we, as members of the population, have toward the bank: savings, current accounts, RSD and FX term deposits and other types of savings accounts.
What deposit amounts are insured by the state?
At the proposal of the Government, the National Assembly of Serbia has adopted a decision to increase the level of insured deposits from EUR 3,000 to EUR 50,000. This means that, in the event of the bankruptcy of the bank, the payment of the insured amount is guaranteed by the Republic of Serbia. This form of protection, as the authorities claim, applies to all savers at the bank level, irrespective of the number of accounts the saver holds at the particular bank.
What types of deposits are available?
In Serbia, there are various types of deposits, most often we separate them according to currency type and type of saving. There are RSD and FX deposits, depending on whether the money we wish to deposit on a savings account is either in the RSD or FX currency. Based on the savings conditions, we differentiate, primarily, a term or FlexSave deposit. With a term deposit, we oblige ourselves to deposit our funds into a bank account for a longer period of time: three months, six months, and most often, one year or longer. If we wish to withdraw our funds prior to the maturity of the term, we receive less interest than was defined.
FX term deposit as the most profitable
After quite some time, term deposits are once again profitable. We offer our savers FX term deposits with maturities of 12 and 25 months, in that the conditions are more profitable when saving for 25 months. You can view our nominal and effective interest rates for both of these savings types any time you wish by visiting our website. The minimum amount for FX term deposits is EUR 5,000.
As we already said, in addition to term deposits we also offer FlexSave, or a flexible deposit account. FlexSave gives you the opportunity to save money and generate a certain amount of earnings, while being able to deposit or withdraw funds into/from the account. Your money is completely disposable to you, but it is still gaining value, which is why this type of savings is very attractive to a large number of savers. You need to know that the FlexSave account does not have a minimum amount.
Advantages of FlexSave
In the case of FlexSave, interest rates are lower than with term deposits, but the conditions of using this type of account can be very favourable. With us at ProCredit Bank, interest rates on FlexSave are calculated daily, on the funds available on the account, and are paid out monthly. You can open a FlexSave account without having to visit the Bank, by vising our website. If you need cash, visit any of our 24/7 Zones at any time, day or night, and withdraw funds from your account, up to EUR 5,000 per day (and more, by contacting our Online Centre in advance).
We Manage Deposits Responsibly
We are known for managing deposits responsibly and we do this in two ways. On the one hand, we invest in the further development of small and medium-sized enterprises (SMEs) and agriculture. On the other hand, we are focused on the implementation of environmentally sound and energy efficient projects in Serbia. Our loan portfolio is one of the most high-quality portfolios on the domestic financial market, with an exceptionally low level of non-performing loans.
To clarify, in the simplest way: in banking, ‘portfolio’ means the sum of all loans that the bank has disbursed and is waiting for clients to return. With us, client defaults in the repayment of loans are two times lower than the banking sector average in Serbia, which is why we are one of the most reliable and stable banks in the country.