BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
as applicable to resident accounts
|
|
|
for terms not less than 1 year and not more than 5 years
|
|
|
for terms not less than 2 years and not more than 6 years
|
|
|
at the discretion of the bank
|
Detailed explanation-1: -In FCNR accounts, both principal and interest are freely repatriable. In other words, the interest earned and the deposit amount on the deposits are repatriable to the depositor’s country of residence sans restrictions. FCNR accounts are offered for not less than 1 year and not more than 3 years.
Detailed explanation-2: -Minimum tenor required to book the FCNR Deposit is 12 months and maximum tenor 60 months. No interest will be paid if the FCNR Deposit is cancelled prematurely before 1 year. No Penalty will be levied on premature closure of FCNR Fixed Deposit after 1 year.
Detailed explanation-3: -We will use the very simple Rule of 72 to find out how much interest rate is required to double money in just 5 years. Using this rule to find out how many years FD will double money, we find out that the answer is your fixed deposit needs to earn a return of 14.4% per year to double money in 5 years.