0
Can a bank choose to close a CD prior to maturity due to risk associated with the deposit?
Wiki User
∙ 13y ago
No. Actually speaking, there are no risks associated with a deposit from the bank side. They already have the money. The only person who should worry about the risk associated with the deposit is the customer who has placed the deposit and he/she can choose to close a CD anytime they want even before the maturity date.
Only the customer who opened the CD (not even the bank) can close a CD prior to the maturity date.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Can bank close your deposit account?
Sure you can. It's your money and your account and you can close it anytime you wish. However, if you are closing your deposit account before its intended maturity date the bank can charge you a small penalty on the interest component for doing so. But the original money you deposited will not be touched and will be refunded in full when you close the account.
Can you withdrawl your money from a CD account early?
Sure you can. It's your money and your account and you can close it anytime you wish. However, if you are closing your deposit account before its intended maturity date the bank can charge you a small penalty on the interest component for doing so. But the original money you deposited will not be touched and will be refunded in full when you close the account.
How can you close a fixed deposit account?
In order to close a fixed deposit account, one must contact their financial advisor and request the required form to close an account, and upon filling it out, it must be turned into the local teller.
What is a time deposit?
money in a savings account A Time deposit is an agreement between a bank and its customer to deposit a fixed amount of money for a fixed duration for a certain rate of interest. The customer would be provided with a certificate of deposit which would contain the interest amount, date of maturity etc. The bank can now use the deposit for its loans and other purposes because ideally speaking, the customer would not ask for the money until the maturity date. Since the bank can plan properly for such deposits, the interest offered on such deposits is usually higher than normal checking or saving accounts. If the customer wishes to prematurely close the account and withdraw money, the bank would charge a penalty for doing so. 1 or 2% of the interest amount may be reduced for doing it.
How can you deposit money through cash deposit machine?
The steps do deposit cash using a cash deposit money is as follows: 1. Either insert your ATM Card and enter your PIN or manually enter your bank account number 2. Choose "Cash Deposit" as the option 3. The machine will ask you to choose the account you wish to deposit - select the correct account 4. Insert cash into the slot where cash will be received 5. Press - Submit 6. The slot will close and the machine will take in the currency and start counting 7. Once counted it will display the amount deposited along with the denominations of the currency deposited 8. Click - Ok to confirm 9. The machine will recount the money and credit it into your account 10. Any invalid or crumpled or damaged currency will be returned by the machine 11. Collect your ATM Card and you can leave.
Can bank close your deposit account?
Sure you can. It's your money and your account and you can close it anytime you wish. However, if you are closing your deposit account before its intended maturity date the bank can charge you a small penalty on the interest component for doing so. But the original money you deposited will not be touched and will be refunded in full when you close the account.
How do you close recuring deposit account?
visit the bank branch where you have the recurring deposit accountsubmit a request in writing to close your accountthe bank will process the request and pay you the money held in that account.A point to note is that, if you are closing your RD before maturity, the bank can charge you a penalty for doing so.
What is the procedure of closing a recurring deposit account?
visit the bank branch where you have the recurring deposit accountsubmit a request in writing to close your accountthe bank will process the request and pay you the money held in that account.A point to note is that, if you are closing your RD before maturity, the bank can charge you a penalty for doing so.
What is the Accounting entry of deposit in a close bank?
check
Can you withdrawl your money from a CD account early?
Sure you can. It's your money and your account and you can close it anytime you wish. However, if you are closing your deposit account before its intended maturity date the bank can charge you a small penalty on the interest component for doing so. But the original money you deposited will not be touched and will be refunded in full when you close the account.
How can you close a fixed deposit account?
In order to close a fixed deposit account, one must contact their financial advisor and request the required form to close an account, and upon filling it out, it must be turned into the local teller.
What is a time deposit?
money in a savings account A Time deposit is an agreement between a bank and its customer to deposit a fixed amount of money for a fixed duration for a certain rate of interest. The customer would be provided with a certificate of deposit which would contain the interest amount, date of maturity etc. The bank can now use the deposit for its loans and other purposes because ideally speaking, the customer would not ask for the money until the maturity date. Since the bank can plan properly for such deposits, the interest offered on such deposits is usually higher than normal checking or saving accounts. If the customer wishes to prematurely close the account and withdraw money, the bank would charge a penalty for doing so. 1 or 2% of the interest amount may be reduced for doing it.
What colour are the tops of cattle corn and people corn?
A golden brown when the plants get close to maturity.
Why are teen dads less likely to have a close relationship with their children than older dads?
Their maturity level
How can you deposit money through cash deposit machine?
The steps do deposit cash using a cash deposit money is as follows: 1. Either insert your ATM Card and enter your PIN or manually enter your bank account number 2. Choose "Cash Deposit" as the option 3. The machine will ask you to choose the account you wish to deposit - select the correct account 4. Insert cash into the slot where cash will be received 5. Press - Submit 6. The slot will close and the machine will take in the currency and start counting 7. Once counted it will display the amount deposited along with the denominations of the currency deposited 8. Click - Ok to confirm 9. The machine will recount the money and credit it into your account 10. Any invalid or crumpled or damaged currency will be returned by the machine 11. Collect your ATM Card and you can leave.
What are fixed maturity plans?
FMP's, as they are popularly known, are the equivalent of a fixed deposit in a bank, with a little bit of difference. Fixed maturity plans are investment schemes floated by mutual funds and are close-ended with a maturity period ranging from three months to five years. These plans are predominantly debt-oriented, while some of them may have a small equity component. The objective of such a scheme is to generate steady returns over a fixed-maturity period and immunizing the investor against market fluctuations. The maturity amount of a fixed deposit in a bank is 'guaranteed', whereas it is only 'indicated' in the FMP of a mutual fund. The regulator for FMP's does not allow fund companies to guarantee returns, and hence they declare only 'indicated returns' in FMPs. Typically, the fund house fixes a 'target amount' for a scheme, which it ties up informally with borrowers before the scheme opens. . Since the fund house knows the interest rate that it will earn on its investments, it can provide 'indicative returns' to investors.
What are the fees associated with parking too close to the curb?
There does not seem to be a fee for parking too close to the curb.
