A deposit is formalized by a contract that specifies the amount, term, interest rate, and conditions for replenishment and withdrawal. By type, there are demand deposits that can be withdrawn at any time at a minimal rate, and time deposits with higher returns provided funds are not withdrawn before maturity.
Key conditions determining actual income, besides the rate: the method of accruing interest (simple or with capitalization), possibility of replenishment, and early termination procedure. With early withdrawal, interest is usually recalculated at a reduced rate, and the final result may be significantly lower than stated.
In Uzbekistan, deposits of individuals are protected by the guarantee system through the Deposit Guarantee Fund for Citizens in Banks. Rates on sum deposits are notably higher than foreign currency deposits, and this difference reflects exchange rate expectations—comparing them directly without considering currency risk is incorrect. When choosing, it is advisable to look at effective returns accounting for capitalization rather than nominal rates in advertising.