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Why fixed deposits an public deposits are unsecured loans and in balance sheet?
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Characteristics of fixed deposits?
zukisani75
What are the different types of fixed deposits?
Fixed deposits come in various types to cater to diverse financial needs: Regular Fixed Deposits: Standard fixed-term deposits with a predetermined interest rate. Senior Citizen Fixed Deposits: Tailored for elderly individuals, offering higher interest rates. Tax-Saving Fixed Deposits: Provide tax benefits under Section 80C of the Income Tax Act. Cumulative Fixed Deposits: Interest is compounded and paid along with the principal at maturity. Non-Cumulative Fixed Deposits: Interest is paid at regular intervals, providing a steady income stream. Special Fixed Deposits: Customized options with unique terms and conditions, often offered by specific banks. Each type serves specific financial objectives, allowing investors to choose based on their preferences and requirements. Shriram Finance offering flexible tenures and returns of up to 9.20%* p.a. (Including 0.50%* p.a. for Senior Citizens and 0.10%* p.a. for Women)
Are Fixed Deposits Bought?
No FD's are not bought. They are types of deposit account which are opened in banks for a fixed period....
What is the difference between cetificate Deposits and Time Deposits?
They both refer to the exact same thing. It is just two different terms by which we are referring to this deposit product. In this, a customer deposits a lump-sum amount with the bank for a fixed amount of time at a fixed rate of interest. In return, the bank gives a certificate to the customer which he/she can surrender after the stated time in return for the invested amount + interest. They are called Time Deposits, Certificate of Deposit, Fixed Deposits etc.
What is the difference between a secured loan and a unsecured loan?
A secured loan is a loan where you have to provide some form of collateral. An unsecured loan is where you do not but the interest is very high and typically is not provided by legitimate financial institutions.
Why fixed deposits and public deposits are unsecured loans and in balance sheet?
fix deposits are not collateralised. that's why they are called unsecured loans every asset and liability comes in B/s
Various strategies for promoting fixed deposits in Banks?
1. Increasing deposit rate of interest 2. Creating awareness among the public on the safety and use of fixed deposits 3. advertisements about the rate of interest and other schemes
What is a fixed return?
Fixed return means - The returns on our investment are fixed and will not fluctuate. For example, the returns on bank time deposits (fixed deposits) are fixed and will not fluctuate.
Who are the targeted customer for fixed deposit in India?
WHO ARE THE MAJOR TARGET MARKET FOR FIXED DEPOSITS WHO ARE THE MAJOR TARGET MARKET FOR FIXED DEPOSITS Identify the major target market of fixed deposit
Characteristics of fixed deposits?
zukisani75
What are the different types of fixed deposits?
Fixed deposits come in various types to cater to diverse financial needs: Regular Fixed Deposits: Standard fixed-term deposits with a predetermined interest rate. Senior Citizen Fixed Deposits: Tailored for elderly individuals, offering higher interest rates. Tax-Saving Fixed Deposits: Provide tax benefits under Section 80C of the Income Tax Act. Cumulative Fixed Deposits: Interest is compounded and paid along with the principal at maturity. Non-Cumulative Fixed Deposits: Interest is paid at regular intervals, providing a steady income stream. Special Fixed Deposits: Customized options with unique terms and conditions, often offered by specific banks. Each type serves specific financial objectives, allowing investors to choose based on their preferences and requirements. Shriram Finance offering flexible tenures and returns of up to 9.20%* p.a. (Including 0.50%* p.a. for Senior Citizens and 0.10%* p.a. for Women)
How do you make entries regarding Fixed deposits i n tally 7.2?
How do you make entries regarding Fixed deposits i n tallyRead more: How_do_you_make_entries_regarding_Fixed_deposits_i_n_tally_7.2
What is Accounting entry of interest on fixed deposits?
fixed deposit A/c dr. to int on fixed deposit
Are fixed deposits placed with banks categorised as fixed or current assets?
Fixed deposits placed with banks are considered as current assets. Current assets are always assets that can be liquidated within 1 year. Fixed deposits can be withdrawn at any time, eventhough their placement periods can be longer than a year.
What is the advantage and disadvantage of public deposit?
MERITS OF PUBLIC DEPOSITS:1.SIMPLICITY: Public deposits are a very convenient source of business finance. No cumbersome legal formalities are involved. The company raising deposits has to simply give an advertisement and issue a receipt to each depositor.2. Economy: Interest paid on public deposits is lower than that paid on debentures and bank loans. Moreover, no underwriting commission, brokerage, etc, has to be paid. Interest paid on public deposits is tax deductible which reduces tax liability. Therefore, public deposits are a cheaper source of finance.3. No change on assets: Public deposits are unsecured and, therefore, do not create any charge or mortgage on the company's assets. The company can raise loans in future against the security of its assets.4. Flexibility: Public deposits can be raised during the season to buy raw materials in bulk and for other short-term needs. They can be returned when the need is over. Therefore, public deposits introduce flexibility in the company's financial structure.5. Trading on equity:Interest on public deposits is paid at a fixed rate. This enables a company to declare higher rates of dividend to equity share holders during periods of good earnings.6. No dilution of control:There is no dilution of share holders control because the depositors have no voting rights.7. Wide contacts: Public deposits enable a company to build up contacts with a wider public. These contacts prove helpful in the sale of shares and debenture in future.DEMERITS OF PUBLIC DEPOSITS:1. Uncertanity:Public deposits are an uncertain and unreliable source of finance. The depositors may not respond when the company needs funds. Moreover they may withdraw their deposits whenever they feel shaky about the financial health of the company. If a large number of depositors simultaneously withdraw their deposits, the company may find it difficult to repay a huge sum at once. Therefore, public deposits are described as 'fair weather friends'.2. Limited funds: A limited amount of funds can be raised through public deposits due to legal restrictions and procedural difficulties.3. Temporary finance: The maturity period of public deposits is short. The company cannot depend upon public deposits for meeting long term financial needs.4. Speculation: As public deposits can be raised easily and quickly, a company may be tempted to rise more funds than it can profitable use. It may keep idle money to meet future contingencies. The management of the company may indulge in over-trading and speculation which exercise harmful effects on the business.5. Hindrance to growth of capital market:Public deposits hamper the growth of a healthy capital market in the country. Widespread use of public deposits creates a shortage of industrial securities.6. Limited appeal: Public deposits do not appeal as a mode of investment to bold investors who want capital gains. Conservative investors may also not like these deposits in the absence of proper security.7. Unsuitable for new concerns: New companies lacking in sound credit-standing cannot depend upon public deposits. Investors do not deposit money with such companies.
Is fixed deposits is an asset or liabilities?
Liability
What are the types of deposits available in Dubai?
Deposits in Dubai are almost similar to what you can avail in countries across Asia. Fixed deposits, call deposits, recurring deposits and flexible deposits are some of the common types of deposits available in Dubai.
