Difference between Fixed Deposit and Public Provident Fund

Fixed deposit

• It is a financial instrument provided by bank to the investor
• It tends to provide higher interest rate than a normal saving account till the maturity period arrives.
• In fixed deposit scheme, money cannot be withdrawn before maturity.
• The interest rate varies from 4 to 11 %
• The tenure of an FD can vary from 10 days to 10 years.
• Usually in India the interest on FDs is paid every three months from the date of the deposit.
• Fixed Deposits does not have any minimum and maximum limit of investment.
• In India fixed deposit interest rate varies from bank to bank.
• Interest on fixed deposit is a taxable income.
• Taxable income Rebate on Fixed Deposits amounts cannot be availed in the financial year of investment

Public Provident Fund

• Public Provident Fund (PPF) is tax-saving instrument in India
• The interest rate provide on PPF is generally 8% which is changed by government  time to time.
• PPF has maturity period of 15 years
• Pre-mature withdrawals can be made from the end of the sixth financial year from when the PPF commenced.
• PPF has minimum investment limit of Rs 500 per year and maximum of Rs 60,000 per year.
• Interest on Public Provident Fund is tax free.
• The interest on PPF is calculated from 5^th day of month to last day of the month
• Rebate from taxable income can be availed in the financial year of investment.
• PPF is beneficial for the investor who are looking for long term investment.
• Loan facility is available against both fixed deposit and Public provident fund schemes.

Know About Demand Draft

It is also known as Tele Cheque

It is an Account payee instrument

A Demand Draft is a kind of Cheque which do not require the signatures of a customer on it

The information that is required for demand draft to be cashed are-

Bank account number of customer.

Bank routing number (nine digit number used to identify a financial institution in a transaction, they can also be found on online banking sites of the financial institution.)

Demand draft is much safer than a normal Cheque because it do not carry the signatures of the customer.

Usually colleges and universities require payment of application fee to be done through a  DD which is a safer way as compared to  a Cheque, In this case, the student would apply to his bank to get a DD issued favoring that particular college. 

Suppose the bank which issues DD for college to the student known as Drawer branch located in Mumbai and the bank which will accept DD for the college in Bangalore known as Drawee branch and the college is called payee

Usually the DD will carry the name/code of the Drawee branch and of the Drawer branch both. The placements of this varies from bank to bank.

The bank would charge the customer for creation of DD, in the form of a commission. Hence the customer has to pay an amount equal to (DD amount + Commission + Service Tax).

BRICS

BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. Earlier it was known as BRIC before the joining of South Africa in 2010.The common thing among all the BRICS nations is that all are developing and fast growing countries. The BRICS nations are also the members of G-20.

As of 2013, the five BRICS countries represent almost 3 billion people, with a combined nominal GDP of US$16.054 trillion and an estimated US$4.3 trillion in combined foreign reserves. At present South Africa chairs the BRICS.

The five countries India, China, Brazil and Russia first met in New York in September 2006 since then The BRIC first formal summit, held in Yekaterinburg, on 16 June 2009. Improving the global economic condition ,enhancing the standard of financial institutions, and strategizing how the four countries could better co-operate in the future was the subject matter of the summit.

Summits

 

1st   16 June 2009 Yekaterinburg Dmitry Medvedev (President)

2nd 16 April 2010 Brasília Luiz Inácio Lula da Silva (President)

3rd   14 April 2011 Sanya Hu Jintao (President)

4th   29 March 2012 New Delhi Manmohan Singh (Prime Minister)

5th   26–27 March 2013 Durban Jacob Zuma (President)

6th   2014 Fortaleza Dilma Rousseff (President)

7th   2015 Ufa  Vladimir Putin (President)

SOME IMPORTANT FINANCIAL TERMS

   Relative Strength Index

It is a technical tool or a continuous indicator that  compares the strength of recent gains
to recent losses in an attempt to determine overbought and oversold condition of assets.

Contingency fund

Somewtime it happens that some unforeseen expenditures comes out even after the announcement of budget.Contingency fund is kept to met those unforeseen expenditures. After the money withdrawn from contingency fund, the consolidated fund of government is used to credit back the contingency fund.

                                                                Gross Income

            A person's total income before applying taxation and other deductions on it.

                                                                Net Income

                       An individual's income after payment of taxes and other deductions.

                                                   Gross Domestic Product

GDP is the market value of all the products a and services produced in a country officially in a given time period

                                                     Net Domestic Product


The value of all goods and services is consumed over a year which results in depreciation, hence net domestic product is calculated as

  Net Domestic Product  = Gross Domestic Product - depreciation of goods and services

                                     Representation Money


Representation Money is any kind of token coins or any physical coins which is safely exchanged for fixed quantity of commodities like silver or gold.

                                           

                                                          Mail Transfer Order


A mail transfer order is only an authority by remitting branch to the another branch for credit of amount to other account for payment  to the customer

Difference between Current Account and Saving Account

Current account - A Current account is one which is meant for business purposes.

Usually small and large business enterprises, share traders and government organizations owns a current account because they require to make instant money transactions over a day.

An owner of current account can make nearly unlimited transactions in a day.

A customer from a bank can withdraw a money whenever he or she wants

A current account do not always pays interest.

It is an account of the balance of payments of a country relating to the imports and exports,sales of goods and overseas investments.

Saving Accounts - An account held by financial institutions or  customers with a bank that pays moderate interest to them

A customer can not write a check from his account for withdraw of money.

Limited number of transaction per day

It cannot be  used as long term investment instrument as it pays lower interest as compared to other instruments  like treasury bills and certificates.

Salaried person holds Saving accounts.

In order to open a saving account ,go to your local bank with required documents like identity proofs and photographs.
                                                                                                                                                                                                                                                                                                                                                 

Computer terminologies and their full forms

 ARP       Address Resolution Protocol
 ABC       Atanasoft Berry Computer
 BPI         Bits Per Inch
 BNC        British Naval Connector
 BMP        Bitmap
 BASIC     Beginner’s All Purpose Symbolic Instruction Code
 CBT         Computer Based Training
 CSU          Channel Service Unit
 DPI           Dots Per Inch
 EDVAC     Electronic Discrete Variable Automatic Computer
 EMS         Expanded Memory System
 DDP         Distributed Data Processing
 DOM       Document Object Model
 ENIAC    Electronics Numerical Integrator And Calculator
 ERP        Enterprise Resource Planning
 FAT         File Allocation Table
 GPL        General Public License
 HSR       Horizontal Scan Rate
 HPC       High Performance Computing 

 KBPS     Kilo Bytes Per Second 

 L2TP      Layer Two Tunneling Protocol

LIPS        Logical Interfaces Per Second

MAU       MultiStation Access Unit

MCP       Microsoft Certified Professional

MIMD    Multiple Instruction Multiple Data