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Certificates of Deposit
Savings instruments that are essentially free of risk, featuring a fixed term and fixed rate of return (interest rate)
1,137 Questions
A negotiable CD is a transferable CD. This means unlike traditional non-negotiable CDs, it can be sold in the secondary markets to other investors. The investment amount on negotiable CDs is also substantially larger than non-negotiable CDs. It is mainly targeted at institutional investors and companies.
How do you calculate interest on TDS for late deposit?
1.5% per month or part there of, till tds is paid
Deduction due date paid date
10000 7.7.2012 8.7.12 interest 150
10000 7.7.2012 8.8.12 interest 300
10000 7.7.2012 8.9.12 interest 450
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What might happen if the government did not insure bank deposits?
people would lose their savings if their banks went out of business
Can I deposit my money order into someone esle's bank account?
No. first of all, a money order can be deposited into the bank account of the person to whom it has been written to. Second of all, even if the bank teller accepts it by mistake, it will not be cashed. The money order will be returned and no money will be paid. So, doing so would be a waste of time.
What does a bank do with the money you deposit there?
They loan it out to other people to buy cars, houses, to start a business etc. The government makes them keep a small percentage of the money as reserve - around 10%, but the rest is loaned out. If everyone wanted to withdraw their money all at once (called a bank run), the bank wouldn't have enough money to pay everyone right away.
This happened during the late 1930's at the beginning of the great depression. In response, the government started the FDIC -Federal Deposit Insurance Corporation. It guarantees savings accounts up to $100,000 even if the bank goes out of business.
compoind interest
Yes, in most countries the income earned out of the time deposits is taxable. i.e., the interest that the bank pays you for the deposit will be considered an income and taxed accordingly.
For ex: In India, let us say your annual income is Rs. 10 lakhs and you earned another Rs. 50,000/- as interest from your time deposit account, your taxable income for this year will be Rs. 10,50,000/-.
What are the costs of a certificate of deposit?
Usually - None. Banks typically do not charge customers for opening certificate of deposit accounts. However, there may be some costs involved (In terms of penalties charged on the interest) if you prematurely close your deposit account before the scheduled end date. Also, in most countries the income earned out of the time deposits is taxable. i.e., the interest that the bank pays you for the deposit will be considered an income and taxed accordingly.
For ex: In India, let us say your annual income is Rs. 10 lakhs and you earned another Rs. 50,000/- as interest from your time deposit account, your taxable income for this year will be Rs. 10,50,000/-.
What is the difference between deposit and sublime?
Well first of all; Sublimation is when a solid turns into a gas. This happens in some occasions. For example, dry ice. (Frozen carbon dioxide) And secondly, deposition is when a gas turns into a solid. Deposition and sublimation are quite different. Sublimation is when heat is added. Deposition is when it is cooled.
This is the rate at which the bank pays customers for depositing money with them. For ex: if ICICI bank tells me that they will offer me a 8% deposit rate for 1 year deposits, it means that if I deposit Rs. 10,000/- for 1 year, the bank will give me Rs. 800/- as interest at the end of the year.
It is also called as deposit interest rate. The rate varies from bank to bank and also based on your deposit duration.
the bank is not liable for a client who is robbed of money outside the bank's banking hall .The bank is only responsible for the security of its customer's and/or their valuable while inside the bank.
Is Investing in Corporate FDs is a Bad Idea?
The point here is that, not all company's are mismanaged or go broke. There are numerous well-performing company's that raise capital by using this FD option. They do it because, it is usually cheaper than borrowing from banks. Banks usually charge a much higher interest rate than what these company's would pay on their corporate FD schemes. So, if the company is a well managed one, with a reputation of stable business and profit earning, then there is a very good probability that you will receive your interest payouts on time and that the company will meet its commitment to repay your deposit at the end of the deposit tenure.
Yes!
What endorsement such as for deposit only limits the negotiability of a check?
Negotiable instruments
What kind of interest is paid on the deposit plus accumulated interest from period to period?
A Compound interest !
Would a certificate of deposit be considered a savings alternative?
Yes it would; however, it's not the best savings alternative being interest rates are so low. A good family money management practice is to view all of your options. You can purchase savings bonds at treasurydirect. You can look into on-line savings accounts which offer higher interest rates than local banks.
A Call Deposit Receipt is a certificate issued to government institutions and corporations as a type of security deposit. The institution or corporations it is issued to can redeem it at any time for legal tender from the issuers account.
True
