BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Savings instrument that requires a deposit for a period of time during which the saver can withdraw money from the plan at any time without a penalty
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Savings instrument that requires a deposit for a period of time during which there is a penalty for withdrawals
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Cash deposit in a savings account that earns interest
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Certificate for deposits that are issued for half the face value
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Detailed explanation-1: -If the investor fails to withdraw the investment within the 7 days grace period, the CD (maturity amount) automatically gets reinvested. Furthermore, if the investors wish to withdraw after the 7 days grace period, they’ll have to pay a penalty.
Detailed explanation-2: -The tenor of a CD at issuance shall not be less than seven days and shall not exceed one year. CDs shall be issued on a T+1 basis where T represents the date of closure of the offer period for issuance of the CDs.
Detailed explanation-3: -CERTIFICATE OF DEPOSIT. A savings plan also known as a time deposit or savings certificate.
Detailed explanation-4: -Federal law sets a minimum penalty on early withdrawals from CDs, but there is no maximum penalty. If you withdraw money within the first six days after deposit, the penalty is at least seven days’ simple interest. Review your account agreement for policies specific to your bank and your account.
Detailed explanation-5: -You might be charged the equivalent of three months’ interest for an early withdrawal from a CD that matures in six months or less. If you have a five-year CD, the penalty might be 12 months’ worth of interest or more.