What are the advantages of compulsory health insurance at VTB 24
Compulsory medical insurance is an alternative to a traditional bank deposit, when the depositor is assigned a certain amount of precious metal in an impersonal (virtual) form, that is, without indicating any special features, such as the sample, number, or origin of the bullion. Only weight is indicated in grams.
When opening a compulsory medical insurance at VTB 24, the client receives the following benefits:
- no VAT is charged when purchasing unallocated gold;
- no account opening fee;
- the minimum initial deposit is 0.1 grams of gold, the possibility of replenishing the account is provided;
- one VTB 24 client can open several compulsory medical insurances in the same name and in the same metal and carry out transactions between their accounts;
- there are no restrictions on the declining balance;
- It takes a short amount of time to conclude an agreement, and you can sell the metal that is fixed on the client’s account without a long wait.
A distinctive feature of compulsory medical insurance is that the depositor does not receive interest, and profit on the deposit can only be obtained through an increase in the market value of the precious metal.
How to top up your account
The IIS balance is replenished from client accounts opened with VTB - current or master accounts. They are replenished in one of several ways:
- depositing money onto a plastic card through an ATM or at the office of a financial institution;
- depositing money directly into the bank's cash desk;
- by card or bank transfer from any card or from an account in another bank.
Funds received to the current or master account are transferred directly to the IIS. To do this you need:
- open the “Savings” tab;
- go to brokerage account;
- activate the “Top up” option;
- enter the amount and indicate a specific trading platform, for example, “Bond Market”.
When making transactions within VTB, no commission is charged. If the deposit is made from cards and accounts of other banks, you will have to pay according to their rules.
Methods for opening compulsory medical insurance at VTB
Opening a metal deposit is similar to an operation with a regular deposit.
At a bank branch
When visiting a branch, you need to:
- present your passport and write a statement of intent to open an impersonal deposit;
- open a current account in rubles;
- draw up an agreement.
After completing the documents, you can purchase impersonal gold for cash or by paying with funds from your personal account.
Online on the bank's website
On the Internet banking page, you need to go to the “Investments” section and find the “Unallocated metal account” menu. You can also manage your account here.
Expert opinion
Lyudmila Pestereva
Our most experienced gold investor
Ask a Question
From January 17, 2017, VTB cannot open new metal deposits, but previously created accounts continue to be serviced.
Commissions
The annual cost of owning the Finex FXGD fund is 0.45%.
VTBG claims no more than 0.5% per year:
- management remuneration - 0.22%;
- depository - 0.18%;
- other expenses - 0.1%.
Almost parity in FXGD expenses. Not really.
In fact, investors in VTBG will incur more expenses . In addition to the standard VTB fees, a commission from a foreign gold fund will fall on their shoulders - 0.4% per year.
As a result, the real commission of the mutual investment fund VTBG is 0.9%. Exactly 2 times higher than FXGD.
Added 10/05/2020. From October 2021, the VTBG fund management fee is 0.66% (instead of 0.5%). In total, instead of the ETF GLD commission, it will be 1.06% per year.
VTB plans to abandon the purchase of foreign ETFs and switch to independent purchase of bullion.
Added 11/11/2020. From November 3, 2021, the VTBG fund switched to the physical purchase of gold bars. Refusal to use a foreign ETF as a cushion allows you to reduce the total commissions to 0.66%.
By the way, VTB simply has a mutual fund (not a stock exchange fund) - THE PRECIOUS METALS FUND. Investing in gold, silver, platinum and palladium (naturally through the purchase of foreign ETFs). With an annual commission of 3.3% + expenses of foreign funds.
Conditions for opening a deposit in gold
You can open an impersonal metal deposit at VTB in any precious metal; you should buy it using the currency of the Russian Federation - rubles (all transactions are carried out in this currency). The term of an agreement with a financial organization is not limited by time; you can terminate cooperation at any time.
The depositor must be a client of VTB 24 and have an active ruble account or create one at the same time as a metal one.
Required documents
To open compulsory medical insurance, the client must present a passport of a citizen of the Russian Federation or an identity document, as well as a tax identification number. If you do not have a passport, you can present a duly issued temporary certificate. Foreigners present a passport of a foreign state and a document confirming the legality of their stay in Russia.
Requirements for depositors
Any capable citizen of the Russian Federation who has reached the age of majority and has confirmed his identity, as well as a foreigner legally residing in Russia, can become a bank depositor.
Features of the VTB Fund
VTB Bank is one of the largest Russian brokers. Clients have access to a wide selection of domestic and foreign stocks, bonds, and ETFs.
To be sure of the safety of your capital, you can invest it in gold.
The broker has several types of its own exchange-traded mutual investment funds (MUIF):
- VTB - American Companies Stock Fund - VTBA;
- VTB - Corporate Russian Eurobonds smart beta - VTBU;
- VTB - American Corporate Debt Fund - VTBH;
- VTB - Moscow Exchange Index - VTBX;
- VTB - Liquidity - VTBM;
- VTB - Russian corporate bonds smart beta - VTBB;
- VTB - Eurobonds in euros smart beta - VTBY;
- VTB - Gold Fund. Exchange - VTBG;
- VTB - Equity Fund for Emerging Countries - VTBE.
The presence of gold in a portfolio increases reliability and expands diversification. BPIF is a Russian analogue of the foreign ETF instrument. A special feature of VTBG is the backing of assets with physical gold. The bars are stored in Russia at VTB Bank.
This distinguishes this mutual fund from another popular exchange-traded instrument - the fund from Finex FXGD, which does not have collateral in the form of precious metals. Another important advantage of VTBG is the absence of commissions for the purchase and sale of shares if the investor makes transactions directly through a VTB broker.
Profitability calculation
To calculate the profitability of a deposit in VTB 24, you need to use the formula:
D = (K2-K1) / K1 x 100%, where K1 is the gold sales rate. It is set by VTB on the date of sale, K2 is the purchase rate at the moment when the precious metal was purchased.
By tracking changes in the value of gold on the world market, the owner of an impersonal deposit can receive income in the same way as when playing on the stock market.
There is a profitability calculator on the website of a commercial organization, using which you can make approximate calculations.
Investment
For many years now, investing in gold has remained relevant and profitable for clients. Metal deposits are highly reliable due to their pricing policy. However, this type of investment has one significant drawback. Such deposits are not covered by the state insurance program.
If you have compulsory medical insurance, gold is stored in a special bank vault.
It should also be taken into account that servicing metal deposits is a more labor-intensive and expensive procedure than servicing foreign currency deposits. Therefore, it is very important to be especially scrupulous in choosing a bank with a high level of reliability and an excellent reputation. At the moment, one of such banks is VTB, which, moreover, offers the most favorable rate in comparison with its competitors.
VTB clients can control metal deposits thanks to a profitability calculator. To use the service, just follow the active link and indicate the following data in the boxes: name of the metal; deposit amount; period. The system will make the calculation automatically and display the received data on the screen in the form of an active and detailed diagram.
How to close a deposit
To close an impersonal account, the deposit holder must sell “virtual” gold to the bank and transfer the funds to any of their own accounts. This can be done both in the branch and online.
According to the Tax Code of the Russian Federation, when closing a deposit that has been owned for less than 3 years, residents of the Russian Federation are required to pay tax at a rate of 13%; if the deposit is 3 or more years old, then personal income tax is not charged.
Non-residents of the Russian Federation are required to pay a tax on transactions with unallocated gold in the amount of 30%.
Replication method
You will be surprised, but the gold fund ETF FXGD does not own any gold . The replication method is synthetic. Which is actually what is written on the official FINEX website.
Following quotes is achieved through a gold swap. What, what?
In simple words how it works.
A swap can be thought of as a bet between two participants. In our case, this is the ETF provider Finex and the bank UBS AG (a large bank with a fairly reliable A+ rating). The subject of the dispute is world gold prices. If the price rises, the bank transfers money to Finex. When gold falls, money from the fund flows into the bank.
A certain step (rule) for the flow of payments is established (so as not to drive money back and forth at the slightest price fluctuation). For example, if quotes change by a certain percentage, the debt is repaid.
The fund holds its main assets in short bonds (including ETFs) and US notes.
The synthetic replication scheme looks quite confusing. But the FXGD fund copes successfully with its main task - following gold quotes. Tracking error - 0.13% per year. For the observation period since 2013.
For reference. Most Russian exchange-traded funds have a tracking error of several percent (I wrote about this in detail here).
Added: October 2021.
ETF Finex from October 2021 switches to physical replication of gold - independent purchase and storage of gold bars
What do we have for VTBG?
The base is gold. But with a small caveat. VTB did not invent anything and followed the already established path. As in its other products, it is based on foreign ETFs.
Scheme: You give money to VTB (by buying VTBG shares). With this money, VTB buys shares of a foreign gold fund - ETF SPDR Gold Shares (ticker GLD). It's simple. Business in Russian.
But the SPDR Gold Shares ETF itself owns physical gold. Which is located in repositories around the world. Detailed information on the fund can be found here.
By the way, the capitalization of the foreign ETF GLD is more than $60 billion. 15 times more than the value of the entire VTB Bank. At current gold prices, this is approximately a million kilograms (or a thousand tons) of gold.
And it seems to me that I know where and who has this pile of gold. )))
For reference. According to Wikipedia, over the entire history of mankind, 161 thousand tons of gold have been mined.
Where else are gold bars sold?
Modern Russian citizens prefer to buy yellow metal at bank branches. Fortunately, this service is offered to customers by 300 licensed banking organizations in our country.
You can also purchase gold directly from manufacturers. In 2021, the same Amur Jewelry Factory began producing ingots from precious metals and selling them on its own website.
Buying gold bullion is carried out in pawnshops. You can even purchase yellow metal from private individuals. There are a huge number of such advertisements on the World Wide Web. However, when making such a purchase you should be extremely careful. The fraud factor has not yet been canceled.
Minimum purchase amount
The cost of one share of ETF FXGD is something in the region of 700 rubles. It seems like a little. And anyone can afford it. It's not thousands or tens of thousands like some ETFs cost.
How can the “golden competitors” respond? Make the cost of 1 lot hundreds of times lower. VTB Gold is trading for one ruble (literally). The market value of one share is 1.07 rubles.
Tinkoff also used to issue penny shares. Around 5 rubles apiece. But in August 2021, the LOT was increased to 100 shares. And the minimum purchase amount is now about 500 rubles. Which is almost comparable to FXGD prices.
When is it profitable to invest in precious metals?
A key feature of the “metal” market is the rise in price of assets during crises. At the same time, “bubbles” formed as a result of speculative games tend to burst unexpectedly. In this regard, it is important for holders of precious metals to scrupulously monitor market realities, getting rid of the “balance” at the peak of its value.
As an example of the validity of this recommendation, it is appropriate to cite the situation with silver during the crisis of 2008-09. Exactly 7 years ago (November 2008), the cost of a troy ounce of silver fell to $9. After 12 months, the indicated volume of the precious metal was worth more than $18. Net profit for the year exceeded 100%, multiple times higher than bank deposit rates. Moreover, by April 2011, the price of silver exceeded $47. Those who managed to buy and sell this precious metal on time received an income of almost 500% within 2.5 years. Similar dynamics were observed with the cost of other metals considered in this review.
Conclusion: when investing available funds in silver, gold, palladium or platinum, it is advisable to follow the rules of the game on the foreign exchange and stock markets. The principle of success is extremely simple: buy at the minimum and sell at the maximum; fortunately, both futures transactions and spot contracts are regularly carried out on precious metals.
Compulsory medical insurance: pricing policy
Today, VTB provides the opportunity to create an account for the following types of metals: gold, palladium, platinum, silver. Precious metals are actively mined to this day, which leads to regular replenishment of gold and foreign exchange reserves.
The pricing policy for metals is dictated by London, which announces the international exchange rate twice during the day. The rate, which is taken as a basis by Russian banks, is set by the Central Bank; it takes into account the international exchange rate of metals, as well as the currency ratio. VTB forms the internal rate based on the bank’s reserve stock and data from the Central Bank. You can get acquainted with the VTB exchange rate for today by clicking on the active link.
Thanks to the convenient service from VTB, clients can monitor metal quotes online, carry out operational procedures for the purchase and sale and transfer of gold between their own accounts, and also monitor deposit analytics. At the same time, the client independently controls the payment of taxes for transactions with metals, which makes the compulsory health insurance service as transparent as possible.
