Interview Questions.

Question 1. To What Asset Class Does A Fd Belong?

Answer :

Fixed deposits shape part of the debt investment of an investor's portfolio.

Question 2. What Are Various Deposit Time Slabs Available?

Answer :

Deposit time slab is the duration for which a time period deposit can be made with a financial institution. There are diverse time periods for which this is possible like 14-29 days, 181-364 days, 3-five years and so on. The depositor has to select such a for the purpose in their deposit.

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Question three. Do Senior Citizens Get Any Extra Benefit On The Fd?

Answer :

Yes, they do get greater benefits within the shape of better interest charges.

Question four. In Case Of Company Fixed Deposits, Where Not To Invest?

Answer :

Companies which provide hobby better than 15%.
Companies which aren't paying regular dividends to the shareholder.
Companies whose Balance Sheet shows losses.
Companies that are under investment grade (A or under) rating.
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Question five. Will I Get A Fd Receipt?

Answer :

Yes, you will get FD receipt and please note that you may not be issued a receipt for FD opened thru Internet Banking.

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Question 6. What Are Tax-saving Fixed Deposits?

Answer :

Tax-saving fixed deposits are a special class of fixed deposits wherein the investor receives the gain of a tax damage after they make investments a amount of cash in the deposit. The most gain is available as much as an funding of Rs 1 lakh and there may be a lock-in duration of five years inside the deposit.

Question 7. What Is Maturity Of An Fd?

Answer :

Maturity is the time at which the quantity inside the constant deposit needs to be lower back to the investor. The constant deposit is given for a term this is determined on the time of making the investment and on the expiry this has to receive lower back.

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Question eight. 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/-. 

Question 9. Are The Interest Rates For All The Banks The Same?

Answer :

Each financial institution or financial institution this is offering fixed deposits fixes its personal deposit rates. The deposit costs depend on the economic role of the financial institution and the conditions that effect the fundraising for the institution.

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Question 10. What Is Compound Interest For Fds?

Answer :

Compound Interest is the capacity of a hard and fast deposit in India to generate hobby, which is then reinvested a good way to generate similarly profits is called compound interest.

Question 11. What Is A Deposit?

Answer :

Deposit is a amount of money lodged in a financial institution for the reason of incomes interest. A deposit is repayable according to terms of attractiveness.

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Question 12. What Is Future Value Of Any Fd?

Answer :

Future Value of any FD is the unique quantity plus the compound interest thereon, said as of a selected future date.

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Question thirteen. 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 established in his account each month. This deposit is commonly available from 1 to five years. The charge of interest charged via banks on such bills relies upon at the period however is higher than financial savings bank account due to the fact this account is sort of a Fixed Deposit Account. Banks introduce such deposit account to inculcate the habit of saving among people through offering.

Question 14. Can I Get A Loan Against A Fixed Deposit?

Answer :

Yes, you can. Most banks provide a mortgage against FD. By the usage of the constant deposit as a collateral for the mortgage you could get a loan at lower quotes. The fees are commonly pegged at a few percent factors higher than the fixed deposit. Usually banks increase up to ninety% of the fixed deposit being held in a loan.

Question 15. Is There Any Scope Of Appreciation Of Principal In Case Of Company Fds?

Answer :

No, at the quit of deposit period essential is back to the deposit holder together with the applicable interest.

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Question sixteen. What Is Repayment Of Fd?

Answer :

Repayment of Fixed Deposit is the motion of giving the original amount this is invested again to the investor whilst the required time period is over. The method of compensation will entire the complete constant deposit cycle.

Question 17. Upto What Limits Can A Company Accept Deposit?

Answer :

A Non-Banking Non-Finance Company(Manufacturing Company) can accept deposit situation to following limits:-

Upto 10% of aggregate of paid-up share capital and loose reserves if the deposits are from shareholders or assured by administrators.

Otherwise upto 25% of mixture of paid-up percentage capital and loose reserves. 

Non-Banking Finance Company can receive deposits upto following limits:-

Equipment Leasing Company can accept four times of its net owned fund.

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Question 18. What Happens To Accounts Of A Nri's Nre Or Fcnr Accounts Which He/she Has Opened Abroad After His/her Return To India?

Answer :

A returning Indian's NRE/FCNR money owed is normally special as a Resident account. Most banks permit these deposits to continue to run until adulthood at the gotten smaller fee of hobby.

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Question 19. 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 now not a financial savings account. Deposits on this account may be made in any of the main currencies like US Dollar, UK Pound, Canadian Dollar, Deutsche Mark, Japanese Yen and Euro.

Question 20. How Are Interest Payments Made In Case Of Company Fds?

Answer :

Interest is paid on month-to-month/quarterly/half of every year/yearly or on adulthood foundation and is despatched both via cheque or ECS facility.

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Question 21. Do We Get Any Advantage Of Investing In A Non Callable Fd Instead Of A Regular Fd?

Answer :

As an investor the most important purpose why you must do not forget making an investment in non callable constant deposits is the higher price of interest. The price of interest in non callable constant deposits is higher compared to callable fixed deposits for the same tenure. But for the reason that Callable fixed deposits allow you to liquidate or damage your deposit within the tenure length at any factor of time select your investments cautiously.

Question 22. What Are Demand Deposits In Fds?

Answer :

Demand deposits are the amount of money that is given to a financial institution however may be withdrawn as consistent with the requirement of the depositor. Amounts that are lying in the financial savings and present day bills are known as call for deposits due to the fact they may be used at any point of time.

Question 23. What Is The Range Of Tenure For Which I Can Open A Fd Account?

Answer :

You can deposit cash for as brief a duration as 7 days and upto 10 years.

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Question 24. What Is The Period Of The Company Deposit?

Answer :

Company Fixed Deposits can be everyday by using a Manufacturing Company having period from 6 months to three years. Non-Banking Finance Company can take delivery of deposit from 1 12 months to five years period. A Housing Finance Company can take delivery of deposit from 1 12 months to 7 years. 

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Question 25. What Are Nomination Facilities Available On Fd?

Answer :

The facility of Nomination is to be had for relationships inside the names of people. Unless in any other case specially given in writing via depositors, nomination in deposit accounts might be at Customer ID degree.

Question 26. How Do I Redeem My Fd?

Answer :

After adulthood of your FD, you may walk into any Bank throughout the united states and declare your deposit by way of furnishing your Fixed Deposit receipt/Memorandum of Deposit.

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Question 27. Why Interest From Company Fixed Deposit Is Higher Than Banks?

Answer :

Company Fixed Deposit have usually supplied hobby which is 2-3% better than Bank Deposit charge. Because they need to pay better interest to banks for borrowing money.

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Question 28. At What Frequency Will I Receive Interest On My Fd?

Answer :

For the Traditional scheme, the hobby on the FD account is credited to the Savings account designated via you on a month-to-month foundation or on a quarterly foundation. For the Reinvestment scheme, the interest is compounded to the most important quantity on a quarterly foundation.

Question 29. What Is Deposit Insurance For Fds?

Answer :

Explicit Deposit Insurance is a measure carried out in many nations to defend financial institution depositors, in full or in component, from losses caused by a bank's incapacity to pay its debts whilst due. Deposit coverage systems are one component of a economic gadget protection internet that promotes economic balance.

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Question 30. What Do You Mean By Bank Fixed Deposits?

Answer :

Bank constant deposits are deposits which can be accumulated from buyers by way of banks for a specific term are called financial institution fixed deposits or financial institution term deposits. These shape the primary area of raising funds for banks. 

Question 31. When Is Tds Deducted On The Interest From Company Fixed Deposits?

Answer :

TDS is deducted if the interest on constant deposit exceeds Rs.5000/- in a monetary yr.

Question 32. Is There Any Auto Renewal Facility Available On Fd?

Answer :

Yes, you may opt for vehicle renewal on the time of starting the FD or anytime earlier than the FD matures. Auto renewal allows your FD to get renewed routinely for the same period as the original deposit. However under auto renewal alternative the constant deposit receipt is with the custody of the Bank and Memorandum of Deposit (MOD) is issued in lieu of constant deposit receipt.

Mutual Fund Interview Questions
Question 33. What Is A Fixed Deposit?

Answer :

Fixed deposit is a amount of money given to a financial institution, economic organization or company wherein the receiving entity can pay interest at a certain percentage for the time duration of the deposit. At the give up of the time period of the deposit the amount this is at the start given is again to the investor. Fixed deposits also are referred to as term deposits. 

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Question 34. Are Banks The Only Institution That Offers Fixed Deposit?

Answer :

There are many other institutions aside from banks that offer constant deposit investment options for traders. Within the banking circle of relatives there are public zone banks, personal zone banks as well as co-operative banks with whom a fixed deposit may be made.

Question 35. What Is Renewal Of Deposit For Fd?

Answer :

Renewal of deposit is a system whereby the deposit holder continues with the deposit for an extra term after the crowning glory of the initial time period of funding. The additional period can be similar or distinct from the authentic time period. Instead of chickening out the deposit quantity that is continued.

Question 36. Does A High Interest Rate Offered On A Fixed Deposit Represent A Good Investment?

Answer :

The interest charge this is offered on a hard and fast deposit by the borrowing organization allows provide an insight into the location of the entity. If the monetary condition could be very strong then the organization can increase funds by imparting a low charge even as a excessive fee must be offered to the buyers to get them to don't forget the investment given the slightly higher chance concerned. 

Management Accounting Interview Questions
Question 37. Are Bank Fixed Deposits (fds) Safe?

Answer :

Bank Fixed Deposits (FDs) are commonly safe investments because FDs as much as Rs 1 lakh are insured beneath the Deposit Insurance & Credit Guarantee Scheme of India.

Question 38. Is Tds Applicable On Fds?

Answer :

Tax is deducted at source, from the hobby on Fixed Deposits, as relevant, as in line with the Income Tax Act, 1961.

Question 39. Which Companies Can Accept Deposit?

Answer :

Companies registered below Companies Act 1956, such as:-

Manufacturing Companies.
Non-Banking Finance Companies.
Housing Finance Companies.
Financial Institutions.
Government Companies.
Question forty. How To Choose A Good Company Deposit Scheme?

Answer :

Ignore the unrated Company Deposit Schemes. Ignore deposit schemes of little known production companies. For NBFC's, RBI has made it mandatory to have an 'A' score to be eligible to just accept public deposits, one should cross further and take a look at best AA or AAA schemes.
Within a given rating grade, pick the organization with a better popularity.
Once making a decision on a organisation, subsequent pick out the schemes that has given a better go back. Unless you need income regularly.
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