Question

what are the risks, fees and rates for the following financial products.

1) Private Bonds

2) Mortgage Loans

3) DDA

4) CD

5) Savings Account

Answer 1

Financial Products	Risks	Fees	Rates
1) Private Bonds	These are moderately risky, as it issued by private entity. The whole risk is depends on the nature, type of the company.	It involves fees like, processing fees, interest on bonds, brokerage, commission etc.	Private bonds gives moderate return. It gives higher return than government bonds.
2)Mortgage Loans	These are very risky or at high risk.These are taken against any property or asset. There is one uncertain risk involve which is the variation in asset value which is mortgaged.	Interest and processing charges, prepayment charges are sort of fees involved in mortgage loan.	There is high interest rate on Mortgage loans. High amount of loan and high period costs high interest, sometimes equal to loan amount , it depends on the amount and period of Loan.
3) DDA : Demand deposit accounts	These are minimal risky account. It covers by insurance, hence the investment upto certain amount is insured.	Generally there are no fees as it covers in bank fees charges as service fees annually.	It gives very minimal returns but more than CD
4) CD : Cerificate of Deposit	It has no risk or a very minimal risky investment.	There are no fees for Certificate of Deposit , but investor may chargeable for penalty for early withdrawal before maturity of CD	Banks gives interest which can be very as per age of the investor and amount and period of the CD. example, Senior citizen gets higher interest on CD than normal citizen etc. The interest is more than savings account.
5) Savings Account	Savings account has minimal or zero risk. Investor keep the money in savings account to invest in other modes of investment.	Generally, savings account has minimum fees. These fees are charged for Debit cards, cheque books, internet banking etc. services. It also has a limit of minimum balance which investor/ account holder has to maintain.	Bank gives interest on Saving account at very minimum or nominal rate. Generally, It varies from 1% to 4% a year