The certificate of deposit It is a title of great interest for Costa Rican citizens who wish to deposit a certain amount of money in a national bank of the Republic of Costa Rica. Clearly, it is a certificate that applies to natural and legal persons.
Now, we invite you to read this article and learn about how to obtain a certificate of deposit, what is it for, what are its benefits and more. It sure is information that interests you, keep reading!
Requirements to Request a Certificate of Deposit
Before mentioning what are the requirements to be able to request the certificate in question, it is important to note that it is also known as «term deposit». That is, it has two denominations that meet the same concept.
Now, the requirements requested by Banco Popular de Costa Rica to complete the application for the certificate of deposit they are pretty straightforward.
- First, provide an identity document, either an identity card or a passport. It must be in good condition and in force.
- Original and copy of utility bill. For example, water, electricity or telephone service.
- In the event that the request is made by legal entities, you must present the corresponding legal identity card and legal personality.
- Then make the initial deposit.
- Finally, complete the «Know your client» form in accordance with current Law 8204.
Where to get the Certificate of Deposit?
The certificate of deposit is a financial product aimed at natural and legal persons who wish to invest their money. With the aim of receiving much higher returns than those offered by sight instruments such as checking and savings accounts.
On the other hand, the Bank of Costa Rica is one of the financial entities in charge of issuing the certificate of deposit. Indeed, it offers its physical and legal clients the option of investing their money quickly and safely. In addition to allowing them to obtain considerably higher returns than those offered by sight instruments or the terms that are required.
The Bank of Costa Rica also offers different term deposit certificates, in colones and dollars. In turn, it offers a fairly wide field of offices throughout the Republic of Costa Rica. As an accessory, they have a virtual office, which is operational 24 hours a day throughout the year.
Obviously, if a user wants to obtain the certificate of deposit In term, you should go to the Banco de Costa Rica offices or, failing that, contact the following number by phone: (506) 2211-1111, by this means you can consult all the information you need about the certificate.
Although it is true, the previously mentioned financial institution is in charge of offering certificates of deposit. The advantage that the Bank of Costa Rica offers us is that the certificate can be requested physically or electronically. It is important to mention that the issuance method will be entirely up to the user’s choice.
Physical Term Deposit Certificate
Now, the physical term certificate of deposit is a financial product with quite a field in the area and works through the deposit of money. Once that money is left to the Bank, interest will be paid to the user on a monthly, bi-monthly or quarterly basis.
Undoubtedly, it has attractive characteristics for users since once the client deposits their money, it will have the support of the Bank of Costa Rica as a state financial institution. In addition, it is negotiable in the Banks of the National Banking System, it is printed in a negotiable security document such as (certificate and interest coupons).
On the other hand, certificates in colones and dollars will have a deduction in the payment of interest of 15% in accordance with what is established in the income tax law that is in force at the time of issue.
Electronic Term Deposit Certificate
Otherwise, Deposit certificates Electronic installments are considered as an electronic record which is issued with support in the debit executed to a checking or savings account. As an investment, which is maintained in said conditions for a specified term that is chosen by the holder and then is settled together with the payment of interest as a deposit in the original account.
Generally speaking, the certificate of deposit electronic term (CDP’s) is known as an investment instrument that offers various advantages compared to Deposit certificates physical term. However, the user who decides to obtain the certificate must have certain requirements such as: a checking or savings account and the necessary resources to ensure the backing of the investment.
Likewise, the CDP’s broadcast channels are through the service platforms or through the virtual office that is operational 24 hours a day throughout the year. To go to the virtual office, Click here.
If you want to see a comparative table on the advantages of the electronic term certificate of deposit about him physical term certificate of deposit, you can click on the following link.
Characteristics of a Certificate of Deposit
Regarding its characteristics, we find that, the certificate of deposit offers quite attractive alternatives to customers due to certain notable factors. For example:
- It offers quite attractive interest rates for users.
- They offer the financial product in two modalities: current interest and capitalizable interest.
- Interest on Banco Popular securities is exempt from paying income taxes. (Only in colones).
- Fully exchangeable at any Banco Popular office throughout the national territory of Costa Rica.
- It offers flexible terms for normal rates from 30 to 1,800 days. For capitalizable rate of 90 to 1,800 days. In this case, the client chooses the expiration date and the bank assigns the term.
- The liquidity of the securities is high. They are negotiable on the National Stock Exchange. They also count as a guarantee of participation or, failing that, a guarantee of compliance with bids, (only in materialized certificates). In addition, it serves as collateral for loans and credit cards.
- It is unattachable, except for alimony.
- Your minimum investment amount may vary. The normal amount, (with coupons), is ¢ 10,000.00 or $ 500.00 and for the capitalizable (without coupons) is ¢ 75,000.00 or $ 1,000.00
- The certificate of deposit can be issued in a materialized or dematerialized form at commercial offices.
- It can be issued in a shared title between two people. (only in the case of materialized certificates).
- Allows naming beneficiaries, thereby avoiding inheritance process.
As established above, the term deposit certificate is a very attractive and attractive option for users due to the advantages it offers. Although it is true, the financial institution will not be the only beneficiary once the client decides to opt for a term deposit.
That is why, below we will mention some of the benefits that a user can enjoy once they request the term certificate of deposit.
For starters, it is seen as a quick and easy operation. In fact, it is not necessary to have knowledge of banking and finance to obtain this product. Remember that in case of doubts, you can get advice from the trained staff of the bank from which you decide to request the certificate of deposit.
- It offers a guaranteed return on the money that the client deposits, and they will always obtain the interest agreed with the financial institution.
- The interest obtained is always higher than that of a checking account or a traditional deposit.
- The client has the opportunity to choose the time in which he will deposit the money.
- The investment is fully guaranteed due to the fact that the time deposits are backed by the Deposit Guarantee Fund.
- The client can know the exact date when he will have his money back. Remember that it is money that is already fixed and the longer it is left in the deposit, the greater the profitability obtained.
What is it?
In short, a certificate of deposit It is defined as a financial product through which a customer deposits a certain amount of money in a bank. In this way, an interest rate will be applied which can be fixed or variable, as the case may be.
This interest rate is in charge of determining its profitability and in turn increases the customer’s savings. It consists of a very basic and uncomplicated operating process. Indeed, the interest of financial institutions is that the client deposits their money in such a way that the user is not the only beneficiary.
Clearly, the banks move this money deposited elsewhere to be able to grant loans, credits, mortgages, among others. In the same way, the financial institution obtains its profitability for the provision of these services.
In addition, it has an expiration date. That is, it has an expiration deadline, from which the funds and interest generated during the period of time that the financial product has been contracted can be withdrawn. On the other hand, the settlement of the interest generated can be made at maturity or on a monthly, quarterly or semi-annual basis.
We hope we have helped you! Thank you for reading us.
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