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Fixed Deposit / FD Interview 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 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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
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:
Question: What is the range of tenure for which I can open a FD account?

Answer: You can deposit money for as short a period as 7 days and upto 10 years. Source:

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