Difference between Savings and Current Account

Many people get confused while withdrawing money from ATM when the see the chose "Current Account or "Savings Account".

They both are different type of accounts offered for different purposes. Now, let us know the basic difference between savings account and current account.

Savings Account

As the name indicates, this account is meant for saving purposes. Any individual either single or jointly can open a savings account.

In these accounts one has to maintain minimum balance as low as Rs1000/ in some PSU banks while it is Rs 10,000 and above in private sector banks. In savings account number of financial transactions are restricted. 

Interest rates are higher when compared to current account. Any cash transactions of Rs 10 lakhs and above in a year will be informed to the IT department.

In case, if you do many cash transactions and issuing of cheques in a savings account, banks have all the right to question you on the income and reason for transaction.

Current Account:

Current account is mainly for business persons, firms, companies, public enterprises etc. This is useful when a person does a  number of business transaction on daily basis.

While, there is no interest paid on amount held in the account, there is no limit on number of transaction.

In case of ATM withdrawal if you have a salary account or zero balance account you should opt for the savings account.

	Savings Account	Current Account
Purpose	To encourage saving	Many transaction
Ideal for	Salarised person	Business person
Minimum Amount	Less amount	Heigher amount(depending on the bank)
Interest Rates	4% - 6%	Normally, no interest is paid
Over Draft	Not Allowed	Allowed

What does Balance Sheet means in Banking Terminology

Balance Sheet in Banking Terminology means?

Balance Sheet:

The balance sheet is an accounting statement that summarizes the various assets, liabilities and equities held by a company on a specific date.

The equities are usually considered as part of the liabilities. The balance sheet is always drawn up at the close of business day, but is most relevant on the last day of the company's accounting period (the balance sheet date).

Balance Sheet Importance:

Balance sheet is an important documents not only for bank managers who sanction loan but is equally important to others who give credits and invest in equity etc. All creditors and investors all need to familiarize themselves with the assets, liabilities, and equity of a company. The balance sheet is the best place to find all information at one place. The reason as to why balance sheet is so called is that it is statement where Assets = Liabilities + Equity

Difference between crossed Cheque and Account payee Cheque

What is the Difference between crossed Cheque and Account payee Cheque ?
Cheque Cheque.

In case of a crossed cheque, the payee is free to make further endorsements.

For example , Ayesha receives a check from Rohan which has been crossed, Ayesha can get this payment in her account only and not across the counter. But in this case Ayesha is free to endorse the cheque in favor of Suresh and further Suresh is free to endorse the instrument in favor of Mukesh and so on…This means that crossing a cheque does not put restrictions on endorsements. In case the Cheque gets dishonored, Mukesh can sue Suresh and Suresh can sue Ayesha and Ayesha can sue Rohan

Account payee Cheque.

But, the A/C payee Cheque cannot be further endorsed. This means that if the Cheque in the above example which is in favor of Ayesha bears “A/C Payee”, payment can be collected in Ayesha’s account only. The paying bank makes sure that amount is being credited to the account of the payee only

Interview: What Have You Been Doing Since Your Last Job?

If you have an employment gap on your resume, the interviewer will probably ask you what you have been doing while you were out of work. The best way to answer this question is to be honest, but do have an answer prepared. You will want to let the interviewer know that you were busy and active, regardless of whether you were out of work by choice, or otherwise. Here are some suggestions on how to explain what you did while you were out of the workforce.

• I worked on several freelance projects, while actively job seeking.
• I volunteered for a literacy program that assists disadvantaged children.
• My aging parents needed a temporary caregiver and I spent time looking after them.
• I took some continuing education classes and seminars.

As I said, it doesn't really matter what you did, as long as you have an explanation. Hiring managers understand that people lose their job - it can happen to anyone - and it's not always easy to find a new job fast. Also, there are legitimate non-employment reasons for being out of the workforce.

8 Important Questions You Have to Prepare for Bank Interviews

Common banking test may be a one time exercise but the selection gets over only after each bank completes its interview proceedings.So candidates have to prepare for every bank interview just like preparing for exams earlier.It is not always easy to read the minds of panelists. 

Due to this personal interview sessions always tend to create panic among young people.But by being bold & ready to encounter any type of question with confidence, it is possible to keep fear at bay.

Questions to prepare have been explained here to help those CWE passouts understand the strategy. 

Procedure & Marks:

From the applications received, candidates will be shortlisted for interview stage based on their CWE scores and no. of vacancies.From 2013 onwards, common interviews for banking jobs are to be introduced. 

It shall be conducted for 100 or 50 marks & the minimum marks to qualify for final selection shall be 40-50%. But for you to compete with others, securing the max. score is important, which can be attained by proper preparations. 

What to Prepare ?

Although, predicting exact questions is not possible, there are certain topics that are sure to be touched by the panelists during an interview for bank posts. 

1. Personal details 

→This will be the first section wherein you are asked about your family, education etc., Normally the question is like ‘Tell us about yourself’.

→Start with a short introduction about family background & move on to highlight your skills & achievements or college projects. (checkout how to answer tell me about yourself)

2. Study your resume/ biodata 

→The biodata or resume carries great importance as its the official document about you. As bulk of the questions would revolve around the data you provide, pay attention while filling the form given at the interview venue.

→Get familiar with what you have written so as to avoid giving wrong answers. 

3. Know yourself

→Now comes the real part, where you need to talk more.What could you be questioned on?  What are your strengths & weaknesses?  What is your biggest achievement?  How can you be useful to our bank? 
→Answering these can get tough if you have not though about this in advance. 

→Responses like ‘My biggest strength is working hard’ & ‘Short temper is my weakness’ will only send wrong signals to the interviewing panel.Don't sound too vague or object of ridicule.

→While officer post requires managerial & team building skills, clerical employees are required to have good customer handling capabilities.

→Understand the job profile & frame answers that could bring these qualities to the fore. 

4. Why bank job? 

→Are you applying for entry level posts in banks with BE/MBA/MCA degrees? If yes, either of the following questions could be heading your way  Why are you applying for banks with technical degree  Are`nt you overqualified for PO/ clerk position 

→The best answer here shall be the real reason which pushed you to write CWE & apply for bank jobs.Try to come up with a reply that would convince the panel.

5. Banking knowledge

→Applying for a bank job & don't know what is a term loan?The chances of you making it to the final list would only get distant.There are roughly about 100-130 regularly used words in banking & financial sector.

→There is no alternative apart from memorizing those terminologies but it isn't that hard since banking awareness is a section of the common bank exam.

→Rather than relying only on websites,you can also purchase some books that provides detailed explanations. 

6. Know about the organization 

→Few questions on history, performance, awards or chairman/MD of the bank could be asked to gauge your level of preparation & interest in taking up the job.

→Visit the bank`s website, look for a section ‘About us’ under which all the info ranging from mission, vision to previous year`s financial results will be available.

7. Know your state 

→Public banks are now demanding applicants for clerical posts to posses proficiency in local language of the state.

→In addition to testing your language skills, expect queries on the no. of districts in your state, names of ministers,governor or about a place of importance.

→These questions need not necessarily test your knowledge but enables the interviewer to deduce your communication skills. 

8. Latest news 

→‘What is the current repo rate’, ‘Who is the chief of Asian development bank’ – answers  to these would be known only if you read newspapers everyday.

→Not limited only to economy, you could also encounter questions about national events such as the recent satellite launch, location of asia`s largest solar park etc.,

→G.K books may help for historical data but newspapers & news channels are your only source for latest happenings.

These are the 8 sure shot questions that you need to prepare for cracking upcoming bank interviews!!

IBPS PO/ Clerk Interview: Top and Important 4 Rules

The interview season is back again for the year 2015. IBPS has announced common interviews for PO & clerk posts as part of the recruitment exams completed last year.The scores secured at this stage are important to confirm your appointment in govt. banks, as it is instrumental in fixing the final scores of an individual.So here are the 4 important rules that you need to prepare for the upcoming IBPS common interviews.

The Institute of Banking Personnel Selection has fixed a total 100 marks for the interview & the minimum cutoff score is 40% (35% for SC/ST/OBC) to become eligible for merit list. 

Therefore, all exam pass-outs must understand that their interview performance is vital for allotment in govt. banks.Here are some of the important areas that you need to concentrate upon: 

Know A to Z of Banking Sector:

The interviewing panel will want to know whether you are fit to work in a bank by checking your banking knowledge. 

→There is absolutely no purpose in selecting someone who doesn't know anything about the field. 

→Expect extensive no. of questions related to banking sector starting from types of accounts to the latest technologies integrated in banks. 

→If you are appearing for the first time in such interviews or was not able to crack it the last time, here is a quick way to memorize all the terms: Get a good book. 

→While going through the pages, take note of the important terminologies in a diary or separate sheet.This will help you in last minute revisions. 

Be Aware of Current Affairs:

→Follow a national newspaper such as ‘The Hindu’ for a month.For business news, ‘Business Line’ will be a good choice (you may also visit their websites such as Hindu & Business Line regularly, if you don't have access to physical copies)

→Events such as Reserve Bank of India announcing new policies, appointment of chairman for appointed for banks, formation of committees & other economy related news shouldn't miss your eyes.They may be asked in your next interview.

→Write down the top headlines date-wise so you may revise them at a glance. 

Don't miss your state events while focusing nationally.In clerk interviews, the panel had also asked questions about the city that he/she belongs. 

Fine-tune your Communication Skills 

We regularly see candidates who were successful in the exams fail to make it in the interviews.A common problem faced by them is the inability to communicate their thoughts in english language. 

→It is NOT necessary for you to speak in British or US English, but whatever you say must be understandable by the panel. 

→Don't feel nervous as it leads you to speak fast, which must be avoided. 

→Ask your friends or family members to conduct mock interviews & get their feedback on your performance. 

→There are certain commonly asked questions in an interview such as Tell me about yourself, Why did you choose bank jobs etc.,You could prepare some answers based on experiences shared by others but dont repeat the exact same thing. 

Incase you don't know an answer for a question, be bold enough to reply, ‘Sir/Mam, I don't know’. 

Behave Well 

A candidate will be judged as soon as he/she enters the room.So right from the manner you greet the panel to the words you use to address them - everything will be taken into account while awarding marks. 

→Dress decently.
        →Men are expected to be in formals (full sleeve shirt & ironed pant with shoes).
        →Women may choose to wear a saree or a neat looking salwar kameez
→Work on your sitting posture & body language.Practice speaking in front of a mirror.It will help you see the various actions you make while answering.

→No nail biting, scratching your heads or pulling your hair type of activities. 

The panel would consist of senior/retired officials from various banks & will expect all candidates to show them respect.You may be brilliant in a field but don't project it or showoff before them as these officials may take it personally & mistake you to be an arrogant person!!

Interview Question: Why Did You Choose Bank Job

For many, appearing for an interview creates butterflies in the stomach compared to written exam. Combine that with some tricky questions – they are sure to fumble.To avoid such situations, BankExamsIndia.com has been analyzing some make-or-break type of questions to help you get prepared in advance.

We shall discuss about answering “Why did you choose to join a bank”. Like “Tell me about yourself”, this is also a commonly asked question in bank interviews especially if you are an engineering or management graduate, as large number of applicants are BE, BTech, MBA, MCA degree holders. 

Expect these questions to be asked by the panel often, as over 90% of engg. graduates have come across this. 

Some variations could be “Why looking for a government job when you can get better pay in private”, “Why looking to join as clerk after engineering”.

What they expect: 

The interviewer wants to know how interested are you in choosing bank jobs.Some others prefer to ask this question to make you speak, thereby judging your communication skills & clarity of speech.Be prepared with your points as this question may lead into a discussion with other panelists also joining in with how`s, why`s & what`s. 

How to answer: 

→The first requirement – Be bold. 

→Make you answer looks realistic & at the same time conveys your willingness to join their bank. 

Don't bluntly say ‘I did not get any other job' or ‘There is high stress & pressure in private companies’. You would be countered with more questions. 

→If questioned about BE graduates opting for IT jobs, mention about the uncertain future of software companies compared to the high growth witnessed in banking industry. 

→You can even emphasize about the opportunity created by huge vacancies in banks that could lead young performers to reach top posts within short span of time, which is absent in other fields. 

→Let them know that your engineering degree would help in interacting with customers from a similar business while lending loans & fetching deposits. 

The above list is only a guidance & not definite nor complete.You have to frame the right sentences for interview questions – to portray your answer as a compelling one, that the interviewer must agree.