differences between the two proposals


Italians often choose to keep your capital on the classic current account, ready to be used when needed. An increasing number, however, are beginning to appreciate deposit accounts; these are particular financial products, which do not present any type of risk, while offering a profit center over time. The escrow account is one of the most profitable opportunities available today; who fears he needs his own capital, he can, however, choose deposit accounts without constraints. There are important differences between the two financial products, which essentially concern the constraint itself.

The escrow account

A escrow account it consists of a contract for which a customer of a banking group undertakes to leave a predetermined amount of capital in his deposit account, for a specific number of months. The duration of a bond can be even less than 12 months, just as it can last up to 60 months and beyond. For the entire duration of the bond, the customer cannot use the paid-up capital, under penalty of complete loss of the accrued interest. However, these interests, thanks to the restriction, are particularly high and fixed for the entire duration of the restriction itself. In essence, the capital must stand “still” for a few months, or even for a few years; with a certain periodicity, an income is obtained, which is also predetermined. The conditions of the single escrow account depend on the banking group you choose for the activation of a deposit account; however, it is in any case a risk-free financial product, easy to activate, possible even for those with small capital available.

The deposit account without constraints

An unconstrained deposit account allows those who activate it to take advantage of the funds paid on it as they see fit. Again the conditions vary from bank to bank; however, interest is usually accrued, calculated only for the period in which the capital was available in the account. The sum paid initially may therefore vary over time; this only slightly complicates the calculation of accrued interest. The difference between an escrow account and an unrestricted one is essentially the constraint, not present in the second case. In addition to this, however, it should be noted that the interest offered for an escrow account is usually much higher than those proposed for an unconstrained account.

When interest is obtained

The interest on a deposit account is calculated annually; however, there are banks that make a quarterly or four-monthly calculation, after which the customer immediately obtains the accrued yield. If desired, the customer can decide to withdraw the return, or to leave it on the deposit account. It should also be noted that for a restricted deposit account the interest is fixed for the entire duration of the restriction, regardless of what happens on the markets. On the other hand, with an unrestricted account it may happen that the offer changes annually, depending on what happens economically in Italy and in Europe.


Source: RSS DiariodelWeb.it Economia by www.diariodelweb.it.

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