Tag: banks

Posted on

Do all institutions automatically renew fixed deposits made with them?

A bank acts according to the rules that are in force for the fixed deposits made with it.

Other financial institutions follow their own rules and they are not similar to that of the bank.

In case of a matured fixed deposit not claimed by an individual the institution would send the money back to the investor.

There might be cases where maturity instructions are taken from the investor at the time of making the deposit.

The company or institution might also hold the money while the investor makes the claim to the matured fixed deposit.

Posted on

What is meant by the billing cycle?

There is a billing cycle for a credit card which is usually monthly in nature.

The spends for a month are taken together and then a bill is generated for the total amount spent less any payments made.

The month is not always a calendar month in terms of dates but it depends on the policies of a bank.

The customers billing cycle could be from the 2nd of one month to the 1st of the next month or it could be from 16th of one month to the 15th of the next month or even 24th of one month to the 23rd of the next month.

This period remains constant and every month the bill would be generated for these specific dates.

Posted on

Can the customer ask the bank to raise their credit limit?

There are times when the customer might find that their credit card limit is low.

They might need a higher limit to make several expenses using their credit card.

In such a situation they can apply to the bank to raise their credit limit.

The bank would normally ask for proof of income in the form of a salary slip or income tax returns when they review the application.

Once the bank is satisfied about the ability to repay a higher amount it would raise the credit limit.

Posted on

What is a loan?

A loan is an amount that is borrowed by an individual from someone else like a bank or other financial institution,

A loan can also be taken from another individual.

There is a specific amount that is taken from the lender.

This has to be paid back on a specific date or in installments as maybe decided while taking the amount..

There is usually a cost that has to be paid for the borrowing called interest.

Posted on

Is there only a specific time period for the interest payout on the fixed deposit?

The interest payout on the fixed deposit depends on the institution where the deposit is made and the policies that it follows.

Some companies for example pay out the interest only annually on their fixed deposits.

Financial institutions and banks however give a larger choice for their investors.

Here the interest can be received either quarterly or half yearly or annually.

In some specific type of deposits only the option of a monthly payout of interest is available but this is rare,

Posted on

Are banks the only institution that offer fixed deposits?

Banks are one of the most common institution where investors go to make a fixed deposit.

This is witnessed because deposits for banks are their primary route of raising funds .

In addition housing finance institutions and other large infrastructure institutions also offer fixed deposit choices.

Companies also offer an option of fixed deposits and these are known as corporate fixed deposits.

There are different risk and reward equations for each of these types of fixed deposits and investors should know this before they make their investment.