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Fixed Deposit / FD Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM INVESTMENT INTERVIEW QUESTIONS FIXED DEPOSIT / FD INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE

Fixed Deposit / FD Interview Questions & Answers - Learning Mode

A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. It is one of the most Safe methods of investments as there is no market risks in case of a FD.

Try Fixed Deposit / FD Interview Questions & Answers - Exam Mode

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Fixed Deposit / FD Interview Questions & Answers - Learning Mode
Try Fixed Deposit / FD Interview Questions & Answers - Exam Mode
Question: What are various Deposit time slabs available?

Answer: Deposit time slab is the period for which a term deposit can be made with a bank. There are various time periods for which this is possible like 14-29 days, 181-364 days, 3-5 years and so on. The depositor has to select one of these for the purpose of their deposit. Source: CoolInterview.com
Question: To what asset class does a FD belong?

Answer: Fixed deposits form a part of the debt investment of an investor's portfolio. Source: CoolInterview.com
Question: Will I get a FD receipt?

Answer: Yes, you will get FD receipt and please note that you will not be issued a receipt for FD opened through Internet Banking. Source: CoolInterview.com
Question: What are Tax-saving fixed deposits?

Answer: Tax-saving fixed deposits are a special category of fixed deposits where the investor gets the benefit of a tax break when they invest a sum of money in the deposit. The maximum benefit is available up to an investment of Rs 1 lakh and there is a lock-in period of 5 years in the deposit. Source: CoolInterview.com
Question: Do Senior citizens get any extra benefit on the FD?

Answer: Yes, they do get extra benefits in the form of higher interest rates. Source: CoolInterview.com
Question: In case of Company Fixed Deposits, where not to Invest?

Answer: ? Companies which offer interest higher than 15%.

? Companies which are not paying regular dividends to the shareholder.

? Companies whose Balance Sheet shows losses.

? Companies which are below investment grade (A or under) rating. Source: CoolInterview.com
Question: Is there any scope of appreciation of principal in case of Company FDs?

Answer: No, at the end of deposit period principal is returned to the deposit holder along with the applicable interest. Source: CoolInterview.com
Question: What is Compound Interest for FDs?

Answer: Compound Interest is the ability of a fixed deposit in India to generate interest, which is then reinvested in order to generate further earnings is known as compound interest. Source: CoolInterview.com
Question: What is Recurring Deposit or Cumulative Deposit Account?

Answer: Recurring Deposit or Cumulative Deposit Account - Under such bank account, a depositor is required to deposit (multiples of Rs 5/ or Rs 10/ are accepted in his account every month. This deposit is usually available from 1 to 5 years. The rate of interest charged by banks on such accounts depends on the period but is better than savings bank account because this account is like a Fixed Deposit Account. Banks introduce such deposit account to inculcate the habit of saving among people by offering Source: CoolInterview.com
Question: What are the multiples in which I can withdraw money from my FD?

Answer: You can withdraw money from your FD in multiples of Rs 1,000/-. Source: CoolInterview.com
Question: Are the interest rates for all the banks the same?

Answer: Each bank or financial institution that is offering fixed deposits fixes its own deposit rates. The deposit rates depend upon the financial position of the bank and the conditions that impact the fundraising for the institution. Source: CoolInterview.com
Question: What are Demand Deposits in FDs?

Answer: Demand deposits are the sum of money that is given to a bank but can be withdrawn as per the requirement of the depositor. Amounts that are lying in the savings and current accounts are known as demand deposits because they can be used at any point of time. Source: CoolInterview.com
Question: What is Maturity of an FD?

Answer: Maturity is the time at which the amount in the fixed deposit has to be returned to the investor. The fixed deposit is given for a time period that is decided at the time of making the investment and at the expiry this has to be given back. Source: CoolInterview.com
Question: Can I get a loan against a Fixed Deposit?

Answer: Yes, you can. Most banks offer a loan against FD. By using the fixed deposit as a collateral for the loan you can get a loan at lower rates. The rates are usually pegged at a few percentage points higher than the fixed deposit. Usually banks advance up to 90% of the fixed deposit being held in a loan. Source: CoolInterview.com
Question: What is FCNR Deposit Account?

Answer: FCNR deposits stands for Foreign Currency Non-Repatriable account deposits. This is a Fixed Deposit Foreign Currency account and not a savings account. Deposits in this account can be made in any of the major currencies like US Dollar, UK Pound, Canadian Dollar, Deutsche Mark, Japanese Yen and Euro. Source: CoolInterview.com
Question: What is Future Value of any FD?

Answer: Future Value of any FD is the original amount plus the compound interest thereon, stated as of a specific future date. Source: CoolInterview.com
Question: How are interest payments made in case of Company FDs?

Answer: Interest is paid on monthly/quarterly/half yearly/yearly or on maturity basis and is sent either through cheque or ECS facility. Source: CoolInterview.com
Question: What is a Deposit?

Answer: Deposit is a sum of money lodged in a bank for the purpose of earning interest. A deposit is repayable according to terms of acceptance. Source: CoolInterview.com
Question: What is Repayment of FD?

Answer: Repayment of Fixed Deposit is the action of giving the original amount that is invested back to the investor when the specified time period is over. The process of repayment will complete the entire fixed deposit cycle. Source: CoolInterview.com
Question: What are nomination facilities available on FD?

Answer: The facility of Nomination is available for relationships in the names of individuals. Unless otherwise specifically given in writing by depositors, nomination in deposit accounts will be at Customer ID level. Source: CoolInterview.com

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