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Profit reinvested i the company by its share holders is called share deposit money
Wiki User
∙ 13y ago
Wiki User
∙ 9y agoShare deposit money refers to checks that can be paid on demands. Letters of credit can also be deposit money.
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What is money deposit?
Profit reinvested i the company by its share holders is called share deposit money
Is share money deposit a part of equity?
A share money deposit is a part of equity. These are considered equity shares, and are long-term profit-invested deposits geared toward to stockholders of a company.
Why do Certificates of Deposit earn higher interest rates than regular savings accounts?
Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.
Which has the higher interest rate savings account or ceritificate of deposit?
Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.
What happens to your money in the CD accounts?
It gets granted as loans to other customers. Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.
What is money deposit?
Profit reinvested i the company by its share holders is called share deposit money
What is share money?
Share deposit money refers to checks that can be paid on demands. Letters of credit can also be deposit money.
Is share money deposit a part of equity?
A share money deposit is a part of equity. These are considered equity shares, and are long-term profit-invested deposits geared toward to stockholders of a company.
Why do Certificates of Deposit earn higher interest rates than regular savings accounts?
Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.
Which has the higher interest rate savings account or ceritificate of deposit?
Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.
How do you deposit money in an account?
you can deposit at the bank
Deposit in a sentence?
he went to deposit his money in the bank he had to deposit 20 dollars
When is a deposit slip given to a person?
When they deposit money
What happens to your money in the CD accounts?
It gets granted as loans to other customers. Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.
Why the saving account pay lower interest and the certificate of deposit is higher interest?
Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. Hence the rate of interest paid on these accounts is very low. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.
Why do banks pay lower interest rates on savings accounts than on certificates?
Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.
How do you earn interest from money in the bank?
You earn an interest by depositing your money with the bank either in your savings account or through a fixed deposit. The bank grants loans to other customers and earns an interest out of it. Since it is your money they are using to give off loans, they share a portion of the profit they earn with you by means of an interest that gets paid out to the deposit customers.
