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25 votes

Are demand and time deposit accounts really loans _to_ the bank?

Yes. When you deposit a sum of money into a bank account, that account is an asset for you. At the same time, it is a liability for the bank. Let's say that you are depositing $1000 to your bank ...
Ben Miller's user avatar
  • 116k
10 votes

Are demand and time deposit accounts really loans _to_ the bank?

Conceptually, yes, we are lending our money to the bank, and it is leveraging those loans to make other loans at higher interest rates. It differs from most loans in that we can increase or decrease ...
keshlam's user avatar
  • 48.2k
3 votes

Long-term stock investment spanning multiple generations

I don't know about other jurisdictions or Germany, but in the UK the solution to this problem would typically be to set up a "discretionary trust", sometimes called a "bloodline trust&...
timday's user avatar
  • 4,002
2 votes

How are banks able to offer high interest rates on foreign currency fixed deposits?

The bank can offer you the local interest rate on a foreign currency, which might be a lot different than your home interest rate. The bank can do this on a no-win no-lose basis, less a commission or ...
JerryFrog's user avatar
2 votes

Is fixed deposit a good option during COVID days?

So let us walk away from the idea of predicting the future and instead take up the idea of constraints, valuation and risks. The first question becomes "what purpose does this money has to serve ...
Dave Harris's user avatar
  • 4,277
1 vote

How do I close my account in GNUCash

When you close the Fixed Deposit account and the principal is returned to your bank account, you're essentially exchanging one form of asset (the FD) for another (extra money in your bank account). ...
Greg Schmidt's user avatar
  • 1,488
1 vote

Unusually inverted yield curve for time deposits

This is in United States, right? You are correct, that's an inverted yield curve. However, the inversion is so strong it may be an error. Or it may be possible that the particular bank has a huge ...
juhist's user avatar
  • 6,743
1 vote

Is there any catch in life time free credit cards against fixed deposits?

LIFETIME FREE means absolutely ZERO charges to be its annual maintenance fees, renewal fees, joining fees, or whatever, irrespective of whether the card is used during a calendar year or a threshold ...
Irfan Shaikh's user avatar
1 vote

Advance Tax on Fixed Deposit Interest in India

If the total tax due at the time of self assessment is less than 10,000; advance taxes need not be paid. So in your example you need to pay advance tax. Generally you can pay this before 15th March. ...
Dheer's user avatar
  • 57.1k

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