Pangahoiused

Pangahoiused, or bank deposits, are funds placed with a bank by individuals, businesses, and other institutions for safekeeping and potential interest. They represent a primary source of bank funding and help support the bank’s ability to lend to households and enterprises.

Deposits come in several forms: demand deposits (current or checking accounts) that provide high liquidity; savings deposits with limited withdrawal options; and time deposits (term deposits or certificates of deposit) that require a fixed term in exchange for higher interest. Interest rates vary by term, deposit size, currency, and prevailing market rates; some accounts may offer little to no interest, or even negative rates in certain conditions.

Regulation and protection: In the European Union, deposit protection schemes guarantee deposits up to a statutory limit per depositor per bank. In Estonia, the coverage limit is 100,000 euros, applying to most individual and many corporate depositors. These protections aim to maintain public confidence during bank stress or failure.

Liquidity and risk: Deposits fund bank lending while providing depositors with relatively safe, liquid access to funds. However, deposits are not risk-free: bank insolvency can affect access beyond insured limits, and returns may be insufficient to offset inflation. Depositors can manage risk by spreading funds across institutions and choosing products that fit their liquidity and return needs.

Use and importance: As a stable, low-cost funding source, pangahoiused support financial stability and everyday financial services for individuals and businesses.