Risk return
This query is : Resolved
Asawari Malhotra
(Querist)
31 August 2013
why are the interest rates of fixed deposit more than savings account? if mr.A and mr.B have the same balances for the same amount of time mr.A in a fixed deposit and mr.B in savings a/c? why is it that mr.A receives more interest? the depreciation of money for both must have been the same.. the inflation rate so the time valueof money for both is the same... then why does one get more interest in an fd than a savings a/c? IS IT THAT MORE RISK IS INVOLVED IN CASE OF AN FD? so the bank compensates with interest?
CMA Ramesh Krishnan
(Expert)
04 September 2013
Fixed deposits interest are fixed and need to be paid on maturity, how ever savings account deposits are rate fixed but it will be flexible based on your use of amount in the account. but fixed deposit is commitment for the fixed period and bank can use the funds freely for that period, but savings account not like that, so interest rates are more for FDs
For bank deposits are risk free investments only which gives the minimum rate of return
For bank deposits are risk free investments only which gives the minimum rate of return
CMA Ramesh Krishnan
(Expert)
04 September 2013
Fixed deposits interest are fixed and need to be paid on maturity, how ever savings account deposits are rate fixed but it will be flexible based on your use of amount in the account. but fixed deposit is commitment for the fixed period and bank can use the funds freely for that period, but savings account not like that, so interest rates are more for FDs
For bank deposits are risk free investments only which gives the minimum rate of return
For bank deposits are risk free investments only which gives the minimum rate of return
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- GST on reimbursement of expenses
- Equity Share Sale and Purchase
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
