All you need to know about instant money transfer

Over the last few years, the field of electronic funds has witnessed a rise over the past few years. This has resulted in an increase in the opportunities in the e- commerce and m – commerce industry. Banks and financial institutes are now interconnected via a centralised network, thus allowing easy access to any account details on the central server. This enables users to transfer funds between any accounts, although there is considerable distance between each of them.

Banks have introduced several additional services making financial transactions a convenience for many. Amongst these services, the instant money transfer service has been one of the most beneficial ones. Instant money transfer service, is an innovative card less cash withdrawal service. Through this service, you can remint funds to anybody within the locality or country. In some cases, you can even transfer funds to another individual, just by providing a mobile number. The receiver can then withdraw and access the funds from the account, without the requirement of using a banking card.

When to make use of the instant money transfer?

One of the main benefits of this money transfer service is that it can be used at any time.
Additionally, the beneficiary can have access to instant cash anytime they require it. This service is beneficial for cases wherein:

• The receiver needs instant money
• The receiver needs to make a cash transfer
• The receiver does not have a bank account
• The receive is not in the vicinity where cash can be delivered.
• The sender does not have details of the receiver’s account number

How does instant money transfer work?

Instant cash can be transferred to any mobile number in India. All you need to do is provide the beneficiary’s mobile number. In order to make the fund transfer, the sender or receiver must login into the internet banking service and initiate the money transfer. The sender and register must then register a one-time account by entering one’s name, mobile number and the required address details. Once both the accounts have been registered, the money transfer service can be initiated once both parties receive information about the details of the transfer.

Normally the details regarding this transfer include:

• Transfer amount
• SMS code, which provides the authority to withdraw funds
• The unique code referring to the transfer
• Expiry dates of the transfer.

Instant money transfers withdrawal

Once the transfer has been completed, the beneficiary can access the funds through the bank’s ATM or even use the funds directly from the instant money transfer account. When withdrawing funds directly from the ATM’s account, you will need to provide details of:

• The mobile number on which the transfer details were received
• Sender’s code
• SMS code
• Transfer amount

Are you aware of the quickremit service?

There are plenty of services that allows you to transfer from one location to another. However, each of these services has their advantages and drawbacks which may or may not in your favour. However, when it comes to transferring funds, especially large amounts, it is crucial that these risks or disadvantage does not compromise your money transfer.

In this case, the best option for money transfer is the quickremit service. Through this service, you can make your money transfer, from any country abroad to India. Additionally, you get a wide range of advantageous exchange rates without any compromising on the security and agility of the service. Given below are the details of the quickremit service which you can take advantage of:

Features and benefits:

• Superior exchange rates: When it comes to making a money transfer from a country abroad to your home country, exchange transfers is one factor you should consider. Through this specialised remit service, you can take advantage of the best conversion rates, while staying protected against the volatile market conditions.

• Direct credit to the beneficiary’s account: Through other money transfer services, the funds would be transferred through a third part. This, at times, would lead to undesirable delays, which may or may not affect your financial requirements. Since the quickremit service eliminates the requirement of a third party system, it eventually eliminates the possibility of any delays.

• Doorstop delivery for demand drafts: Transfer of funds have always been an issue to areas which are difficult to access or isolated. Doorstop delivery of INR demand drafts provides the convenience of transferring funds to such locations, thus providing a wider range of services all over the country.

• Tracking service: Tracking your transfer is crucial, especially when transferring large amounts of funds. With this tracking service, you can be well aware of the transfer progression, which can allow you to make the necessary preparation for your financial requirements.

• Round the clock customer service: If you have any queries or doubts regarding your transfer, you can contact our customer service at any time of the day or night for assistance.

Registration process:
The registration process for the quickremit service is very simple. All you need to do is log onto the bank website and register an account. You will need to provide details about your identity, contact details, address details, citizenship details and annual income.

Transaction process:
The transaction process is relatively simple, where you only need to log onto the quickremit website and log into your account. You will then to fill in details of your account, mode of transfer, and the details of the beneficiary. You will also need to select the amount you would need to send. Once the transaction has been confirmed, you will need to instruct your bank about the transfer of the money. Once the amount of the remittance is received by the bank, it will be immediately dispatched to the recipient.

Do you know these surprising facts about the FCNR account?

Earning abroad offers you the benefit of foreign funds, which often have a high conversion rate as compared to the local currency. But while you might wait for the right time to take advantage of the market conditions, you can look for alternative options to invest your foreign funds. One of the best options available in the market is the FCNR. Here are a few facts you must know about this account before you invest in it:

Easily used to repatriate funds:

As a part of the feature of the account, the funds that need to be invested must come from abroad. These funds are also allowed to be repatriated back home. Although the balance in the FCNR account is allowed to be held in a termed deposit, the funds from the account can be used to make payments locally. This can be done namely through a joint account holder, who can be a relative or someone who is abroad.

Tax-free investment:

As compared to the other NRI accounts, the FCNR is tax-free in India. Therefore, if you invest in this account, you need not pay income taxes or wealth taxes. This makes for an excellent investment option especially if you will be working or staying abroad for long term purposes. Through this factor, the account holder can remit the primary amount or the interest, back to the home country without any tax charges. Additionally, you can have a compounding interest at the date of maturity

Ideal long term foreign currency investment:

As a part of the features of the account, the account holder can invest over six different currencies in the account. These currencies include the US dollar, the British pound, the Euro, the Japanese yen, the Australian dollar and the Canadian dollar. Since it also functions as a termed deposit, you can enjoy the benefits of foreign currency rates, especially when you invest it in a termed deposit. Since the invested funds in the account are not affected the volatile conditions of the market, you can easily invest the funds at a fixed rate, when the market conditions are in your favour. You can make multiple deposit accounts, with different tenures to receive a different return of interests at the period of maturity.

From the above facts, you can see that the FCNR makes for an excellent opportunity, to invest your foreign funds. With over multiple currencies to opt for, each promising high returns, you have plenty to opt for when it comes to investing. Additionally, if there is any change in the status of the non-residing Indian, the account will be converted to RFC account, thus allowing you to access the funds, by your changed requirements.

All you need to know about telegraphic transfer and its advantages

Transferring money from location to another has become a necessity in today’s financial habits for many. Whether it is transferring funds from one country or another, or within the country, there are plenty of options to consider when it comes to money transfer. Amongst the different options available, the telegraphic transfer has always been a popular choice for many.

The telegraphic transfer works like other money transfer options. The sender will select a fixed amount that needs to be transferred along with the required service charges. Additionally, details of the designated financial account are also provided. Standing instructions are provided to the sending bank or institute, which is then passed to the receiver. Once the transfer is made and received, it is considered as a ‘cleared’ transfer.

 Previously, it was used by telegraph companies that carried telegraphic transfer of money orders from one wire company to another. Through this form of transfer, the bank or financial institute, through the standing instructions, can wire funds from one account to another account. Today, with the progress in technology and economy, it is now possible to wire funds from any financial institute to another. Therefore, funds can also be transferred through this process by depositing money in cash, at a cash office which can be transferred to the requested bank account.

Telegraphic transfer, which is considered as a wire transfer, is considered to be one of the easiest forms of making payments for any bank transactions. It is also a popular option for those who want to make large money transfers. Today, it can be used to make payment for banking transactions such as personal account management, credit card balance transfer, paying telephone bills and even other utility or internet bills.

In addition to this benefit, this money transfer is also one of the safest options. As the actual transfer of funds is not seen by any individual, until it reaches its destination, it cannot be easily compromised. In this way, it ensures the maximum security when making any payments or any transfers. Additionally, as it is administered by the global administer, it monitors the transfer of funds across different networks, thus ensuring a smooth and secure transfer.

Wire or telegraphic transfers are extremely fast. Once the funds are deposited it in the account, it can be withdrawn and used for any purpose required. In most cases, there is no hold on the funds so that the recipient can use the funds within a business day. If there is any delay, the receiver needs only to show the wire proceeds in the financial account, to access it

What are the best options to send money online from abroad?

When it comes to sending funds from abroad, there are plenty of factors to be taken into consideration. Factors such as the location of the deposition, amount to be sent, a requirement of the transfer and conversion fees amongst many others needs to be considered when you want to send money online. However, thanks to the progression of technology and economy, there are plenty of transfer options, each with diverse features to suit the different requirements of money transfer. Given below are the different options you can consider, when opting to send money through an online portal.

NRI bank accounts:

There are several NRI bank accounts that offer the option to send money online. However, when opting to open this NRI account, the different features of the account must be taken into consideration. Certain NRI accounts can be opened in accordance with the status of the primary and secondary account holder. Once the account is functioning, the online money transfer service can be activated in order to make the required remittance. When making these transfers, you should check the type of account that permits certain kind of currencies and the limitations to money transfer limits. However, these accounts also offer certain benefits such as faster transfer and low transactions fees amongst many others.

E-mail money transfer:

One of the upcoming money transfer options includes the email money transfer. It is an ordinary online transfer facility, but it often does not charge extra fees depending on the transfer you are making. This kind of money transfer is convenient for many, as there is no requirement for the sender to possess the receiver’s bank information but only the email ID. However, a security question will be shared between both parties. If both parties manage to answer the question accurately, the transaction will progress ahead. Additionally, the sender’s bank may also request details of the receiver so as to validate his or her identity. This transaction will only take place under a secured and closed connection and rarely is sensitive information places in these emails.

Private transfer institutes

Apart from public banks and email transfer options, you can also approach a private transfer institute to make a money transfer. These institutes offer a wider range of online or offline transfer services, which offer a diverse mean to send money back to India. Through this money transfer option, the sender and receiver need not have a bank account to make a money transfer. However, a small service fee is charged along with the current exchange rate charges. You can get special alerts for these transactions on your phone or email id once it is completed.

Are you aware of the security tips when transferring money online?

Today’s technology has progressed to a level, which allows you to transfer funds from one account another in a matter of a few hours. All that is required is a mere clock of a button and funds can be easily transferred from one country to another. However, there are plenty of risks involved when it comes to online money transfer. Through these risks, either your funds can be compromised or even details of your account can be compromised. However, with these few security tips, you can easily reduce the risks involved in transferring money, thus ensuring an easy online transfer.

Opt for a secure desktop over a public one:

When you make an online money transfer, you will need to use a digital platform to do so. This platform can be either in the form of a computer, laptop or even your phone. But unlike a private platform, the public platform may not have its security features that are up to mark. At times, public platforms may have malicious software or tracking devices installed without your knowledge. When you access your account or make a transaction, this software or tracking device can collect all the relevant data such as passwords, account details and user id, which can be transmitted to another remote location without your knowledge. This data can then be used to access your account or restrict your access to it.

Additionally, this information can also be used to create a replicate account for the purpose of stealing data.

Avoid unreliable third party websites:

In order to make an online money transfer, you will be required to log onto an online portal in order to log into your account. When logging into the website, you will need to use the complete website URL to login. Otherwise, you might log into a similar website with false details. These websites, in particular, are malicious, using techniques of spamming and phishing to collect account details. This account detail is then either publicly published, or can be used to create a fake account in your identity. In this way, your account will get compromised.

Avoid public internet networks

When you log onto the website, an internet connection is required. Plenty of public places such as cafés, restaurants and other similar outlets offer free Wi – FI. These networks may offer a free internet connect, but they do not offer the same security features that you can find on a private internet connection. Plenty of individuals can easily access your account or data and manipulate a transaction to deposit it in another account. All it requires is a combination of software and profession skill to make this illegal transfer from occurring.

Transferring your funds online will save you a lot of your resources and time. However, it is important to keep the security in mind when dealing with such important financial transfers. Any decision you make can lead to loss of your funds or compromise on your account.

Saving accounts for NRI: NRO versus NRE account

Although plenty of individuals have settled abroad, the Indian financial market still attracts investments from these individuals. While options such as stocks, mutual funds and other equities are popular investment options, they are affected by the volatile conditions of the market. In this case, the best and safest option for such NRI’s are the NRI saving accounts. However, choosing the right NRI saving account, namely, the NRO or the NRE account is crucial.

Each of these bank accounts comprises of different features, facilities and benefits to suit the unique financial needs. They include the following differences:

Ordinary Non-Resident Rupee i.e. NRO Savings Account:

The NRO account is the best choice for those who want to invest funds in the Indian currency. Additionally, those who want to invest income earned from India, such as rent, dividends, etc. can use this account to invest the earnings. On the other hand, the interest earned on NRO account and credit balances are subject to respective income tax bracket and are also subject to applicable wealth and gift tax. However, when it comes to opening the account, an individual who has a status of PIO or OCI is allowed to open this NRO savings account. This account can also be held jointly with a resident or another NRI.  If eventually, the account holder is returning to India permanently, this account is an ideal choice as it can be converted into a resident account easily. Apart from its investing benefits, it also offers plenty of remitting benefits. The NRO savings account has restricted reparability i.e. permitted remittance allowed from NRO is up to USD 1 million net of applicable taxes in a financial year. However, a chartered accountant would need to provide an undertaking and certification to support this claim.

Non-Resident External i.e. NRE Savings account

This type of NRE account is the best choice for those who want to ensure their overseas earnings is invested in the foreign currency and remitted in the local Indian rupee. The funds in this account are also easily liquidated and hence makes it easier for remitting. Added to this feature, is the free reparability of the principal and interest that is earned in this account. Therefore, this is a good way to invest and earn interest on a long-term basis. Additionally, the savings account for NRE is tax-free. However, when it comes to opening the account, only an NRI can open it. Additionally, the NRE account can be jointly held with another NRI but not with resident Indian.

Both accounts have their different benefits, suited for different financial requirements. For NRI’s who are planning to stay abroad for long term purposes, the NRI account is the best solution. All that is required to maintain the account is by occasionally depositing funds from abroad or through local pensions.

Transferring your funds to India is now made easy

There are plenty of reasons as to why an individual would want to travel abroad. Better employment and career prospects are some of the causes amongst many others. No matter the reason for this relocation, there would always be a requirement to send money home. While this remittance process will continue to take place over the next few years, the mode of transfer will continue to change.

Over the last few years, the field of electronic funds has witnessed a considerable rise. This has resulted in an increase in opportunities within the e – commerce and m – commerce. This, in turn, has brought on plenty of options when it comes to transferring funds, making it easy for many. Here are the different reasons as to why you can now make an easy money transfer to India.

Institute to institute:

Plenty of banks and financial institutes are expanding their branches and services to different part of the world. As they follow a fixed transfer protocol within their system, it would be easier to transfer funds from one account to another, within the same bank. Therefore, families or individuals who want to send funds on a regular basis, or send large amounts on a regular basis, can opt for this kind of money transfer to India. These individuals only need to open bank accounts within the same banking or financial institute and provide standing instructions to the institute.

Fast conversion rate:

One of the major drawbacks of transferring funds from one location to another, especially when it comes to transferring from one country to another, is currency conversion. Depending on the amount of fund that is being transferred, the funds would need to be converted into the local currency before being transferred. This currency conversion, also takes into account the current financial market conditions, before the transfer is made. Since its economic and technological progress, banks now ensure you get the best out of the currency conversion before you make your money transfer to India.

Online process

Traditionally, funds could only be transferred through a physical bank or financial institute. Today, funds can be easily transferred through an online portal. Several banks and financial institutes are already offering their services on the online portal. Not only is it easier to manage and track transactions, but networking to other centres is also easy and constant.  In addition to this, the advanced technology and fast processing have made such transfers quick, no matter the destination it is being transferred to. With this form of transfer, there is a reduction in the time taken for transferring, which would take 3 to 4 days as compared to 10 to 15 days through the traditional sources.

From the above reasons, we can see how easy it is to make a money transfer to India. With transferring modes like wire transfer, account to account transfer, and demand drafts, transferring funds have now become for plenty of individuals.

What are the security measures that promote safe remitting?

Remitting funds to your home country is now made easy, through the various options for money transfer. However, at the same time, there are plenty of risks involved each time you want to send funds abroad, especially when you want to remit to India. But while these risks will exist with each option, you can take certain precautions to promote a safe remitting. Here are three different security measures you can use when remitting funds back home:

Track the transaction made

The idea of getting constant alerts may seem like a nuance. However, when it comes to transferring funds, it makes a great benefit, especially if you transferring large funds on a regular basis. Plenty of banks and financial institute that offer money transfer services may also offer a tracking service. This service may come as a free add-on or a chargeable service. While you can manually track your service, getting alerts on each step of the transfer will ensure that you are well aware and well updated. Therefore, if there is an unexpected delay or unusual activity anytime during the transfer, you can take the measures or action.

Accessible customer service
You will have to accept the fact that no service is 100% perfect. There is bound to be some delay or problem during any one of your transactions. But when you are considering the option to remit to India, you need to be prepared for such factors. This can be only done if you have access to a customer service that is available to you anytime during the day, or even at night. Plenty of money transfer services and banks offering this service often offer an automated service which may or may not provide you with the solution to your problem. However, plenty of banks and institutes do offer this service, while providing an alternate option to access any of the customer service staff when required.

Look out for signs of scams

While there are plenty of measures that will offer you the ideal security and safety measures, there are certain factors you will also need to avoid for the best security options. One of these factors includes scams. Scams can often be found online, or even at unregistered money transfer services. You may find fraudulent emails that request personal information in your mailbox, in exchange for providing the best transfer deals. You might even get a call from individuals claiming to be from authorised money transfer services, who offer you great deals and discounts. The best way to avoid a scam is by being alert. No bank or service will request for personal details or even details of your account.

Are you aware of these money transfer tips?

It is not uncommon for individuals who have settled abroad to send money from the country they are residing, to their home country. Such experienced individuals are well aware of the minefield, pertaining to the transfer of funds in terms of hidden charges, financial paperwork and the possibility of security issues. If you are sending money to India, here are a few tips you can keep in mind:

Search for the best exchange rates

Not many banks offer the best exchange rates. This is especially true when it comes to transferring large sums. In this case, apart from banks, there are plenty of private financial organisations that provide money transfer services. However, it does help if you compare the exchange rates of the different foreign exchange providers before choosing the service that provides you with the best rate.

Search for deals for your home country
When looking at different money transfer options and services, ensure that you search for money transfer services to the country you want. Certain banks and financial institutes provide special deals and discounts if you are going to send funds to a particular country. For example, you will find plenty of money transfer deals from USA, Dubai and England to India, where you can get a minimum or free money transfer fee.

Search for the ideal mode of transfer

Today, there are plenty of options to consider, when it comes to sending money to India or any other home country. In most cases, the popular options are the foreign demand draft or SWIFT and Wire transfer. Demand drafts are relatively cheap, making it an ideal for those who want to save funds on transfer. However, the time take for the transfer is relatively long, so this option is not the ideal one for those seeking emergency funds. For any emergency or quick transfers, Wire and SWIFT are the ideal options. But they also come at a high charge. Therefore, before you make a decision when it comes to selecting the mode of transfer, you must compare the different offers to see if it suit your required needs.

Ensure that your service is regulated

Local transfers are considerably different from international transfers. With any international transfer, you should ensure that the safety and security of each transfer is a priority. In order to ensure that your transfer is safe, from a security perspective, you must ensure that the institute where you are seeking the money transfer service is regulated, insured and licensed to carry out foreign exchanges.

While there are plenty of other tips to consider, it is important that your finances are not affected in the long run. Additionally, you should also consider the factors that can affect the receiver.

Are you aware of the risk associated with ATM cards?

Banking cards such as the ATM card has proven to be a favourable option for many individuals who want instant cash. However, like any other financial tool, this card also has its risks.

While banks have taken the effort and doing their bit to make card transactions safer, there are plenty of ways fraudsters can misuse the card. This being said, these individuals, over the last few years have been taking advantage of these risks and robbing customers from their savings. The only way a card holder can protect the card and the transactions that are made is by being alert and careful. To do so, an individual must be aware of the risks associated with the ATM card. Some of the common risks are as follows:

Keypad jamming fraud: As the name suggested, the keypad of the ATM is jammed. This fraudster will specifically jam the “enter” and “cancel” button through inserting a pin or blade at the edge. When a customer tries to complete or cancel a transaction, after entering the PIN code, it cannot be done as the required key will not function. At this stage, the customer may leave the ATM, thinking that the transaction will be cancelled. As soon as the customer exits the booth, the fraudster takes over the machine and removes the jammed obstacles, thus providing a free access to the keypad to complete the transaction. To avoid such a situation, ensure that the transaction is cancelled, through the timeout period. Each ATM machine comes with a timeout period, wherein, as soon as the transaction is initiated, it must be completed within a fixed period. If there is an inactive period of more than 30 seconds anywhere during the transaction, the transaction will automatically be cancelled.

Card swapping: This normally occurs at the point of purchase. In this stage, banks cards which also have the function as the ATM can be misused. When such a cardholder visits a merchant establishment or restaurant and uses this card for a transaction, the fraudster will note down the ATM pin being used. Later when the card is being handed back to the customer, the fraudster will switch out the card for a dummy card. With the original card and the PIN code, the fraudster can get easy access to the customer’s financial account and funds. The best way a customer must stay protected in this situation is by being aware of the card when it is being returned. Additionally, ensure that you get total privacy when you are typing in your PIN code.

Skimming: Over the last few months, skimming has become a popular option for fraudsters. These individuals place a skimming device on the card slot of the ATM machine which is embedded with a chip. When a customer feeds the ATM card into the machine, this skimming device will read the card and collect information pertaining to the account being accessed. In this case, customers have to be alert if the ATM machine is compromised. Alternatively, they must also keep an eye on their card statements to see if there are any unauthorised withdrawals.

All you need to know about night trading and the risk involved

Trading in the stock market offers a lot of benefits. However, as an investor for this market, you will mostly invest during the fixed times during the day. This is known as day trading, wherein which most investors indulge in. However, most investors also trade after the traditional market closes. This is known as night trading.

With the assistance of electronic communications network, also known ECMs, it makes it easier for investors to route orders to their trading account and match up buyers and sellers after trading hours. Just like the normal hours, after hour trading, also known as night trading would have limitations as compared to the traditional trading. However, the limitations are completely different from the day time trading market.

But how can an investor place orders? The same system works similarly to the daytime trading, with minuscule differences. For one, you still need a trading account. However, the trading institute who offers you this account will have different fee structures, for day trading as well as night trading. However, when it comes to trading, most brokers offer specific day orders, which are only valid for that day, including the night trading. In the even there are no buyers, to match your orders, then your order will get expired. Alternatively, there is another set of orders, which go beyond the same trading day and inclusive of the after hours. It can also go into the next day. Therefore, as an investor who is looking into orders beyond the night trading, you must look out for these.

Whether it is the day trading or the night trading, each section of the trade market will offer you its own set of benefits. But in order to make the most of your investment, you will need to understand the risks involved. In this case, the risks involved in night trading are different.

Liquidity: This is one of the major risks of night trading. This section does not have the same volume and market size that is offered in the day trading. 
Big competitors: As an individual trader in the night trade, you may face large institutions and companies in the after-hours market. These institutes have the right leverage and power to overcome you when trading, therefore you must be prepared.

Wider spreads: Owning to the low liquidity in this market, the spread of your stocks will spread wide out. When this occurs, tracking your stocks will be a tedious job. Therefore, it is crucial that you understand where your trade your stocks.

Volatility: As mentioned previously, owing to the low liquidity and the widespread stocks, you may face plenty of volatile condition during the after-hours market. Therefore, you must be prepared to check for earning announcements or company news in these odd hours. As such news can drive stocks higher or lower in an instant, it is crucial that you are aware of these factors in order to make a sound investment.

What are the major functions of investment banking institutes?

If an individual or a business requires capital, there are plenty of options to consider. Investment banking is one such option. Certain financial institutes exist and function in such a manner wherein they assist in raising financial capital. Additionally, these institutes also act on behalf of its clients in the process of issuing securities.

Plenty of individuals and companies seek out an investment banking relationship with such institutes that will help guide them through pitches related to financing a business or managing its assets. But apart from this, these institutes offer

When these companies seek out an investment banking relationship, they seek a partner that will guide them through pitches related to financing a business or managing its assets. Additionally, these institutes also offer executive strategic plans in addition to providing public offerings or asset management. Apart from this, given below are the major functions of investment banks:

Raising capital and security underwriting: At times, a company would want to issue new bonds or pay for an acquisition or a new project. Through the services of an investment bank, the company can issue a new bond, retire old bonds, pay for an acquisition or even a new project. Additionally, the investment bank will determine the value and risks of the business, in order to set the price, underwrite and sell the bonds. This investment bank can also underwrite other securities such as stocks, through initial public offerings or any subsequent secondary public offerings. The investment banks also ensure that the buying public commits to purchasing the issue of stocks or bonds before it hits the market. In other words, these investment banks are intermediaries between the issuers of bonds or securities and the investing public.

Mergers and acquisitions: Investment banks also offers various services related to mergers and acquisitions. As a part of this investment banking process, the institute will provide services related to business valuation, negotiation, pricing and structuring of transactions, as well as procedure and implementation. This involves analysis in the accretion and dilution while understanding the mergers and acquisition accounting. Some investment banks also provide fairness opinions, wherein the documents processed by them attest the fairness of a transaction. Additionally, these institutes also take on a role of a potential advisor to a potential seller or mediate between an institute and a potential client.

Sales, Trading, and equity research: Most investment banks match up buyers and sellers. Additionally, they also purchase and sell securities out of their accounts, in order to facilitate the trading of securities. Through this service, institutional investors such as pension funds, mutual funds, university endowments and hedge funds trade securities. Thus, this banking institute makes a market in that particular security, which provides the ideal liquidity and price for investors. In return for these services, the investing banks charge a certain percentage of communion, depending on the securities traded.

How can small business loans fund your company’s resources?

Every business requires a certain capital to successfully function. Whether it is meeting the payroll, managing with unexpected expenses or investing in future expansions, this capital is required. However, for a small business, raising sufficient capital may be a challenge, especially if the market is competitive.

With the right loan, your small business can get the required funding for resources any business owner would require. Here are the different ways these business loans can assist you:

Marketing: As a part of any business strategy, a business owner will need to market the business, especially through ads, social media posts, new website developments and similar market-related expenses. By using a business loan, it gives you the flexibility to invest in your business growth, especially for a short notice. This is an ideal way to measure a marketing campaign and invest the required capital in beneficial marketing tactics that deliver favourable returns.

Purchasing inventory: Any business would need to have the ability to purchase new inventory, especially if you spot a great deal on a short notice. Small business loans are flexible for such inventory purchases. This an ideal solution to get capital for inventory such as during peak shopping season or even purchasing a hard to find inventory. This is the best financial solution for businesses, who want to stay ahead of the competition and make their mark in the market.

Covering slow receivables: It is not uncommon for small businesses to encounter a cash flow crunch because the targeted market is slow. In such a situation, access to a line of credit or working capital loan ensures that you can keep paying off your bills until the market turns favorable.

Office relocation or expansion: Small businesses often undergo an expansion, which will either require a new place or relocation. A small business loan will provide you with the required capital to pay for any short term costing, required for this reason, without affecting your business’s revenue.

Investing in a new product development: As a business depends on the products offered, at times, research and development into new opportunities ensure the continuity as well as future expansion of the business. Small business loans will provide your business with the required capital to experiment and get your ideas for a new product off the ground. These capitals will also you to market your new product, without forcing you to invest your current business’s income.

Unexpected expenses: It is not uncommon for a business to suddenly undergo unexpected financial requirements. In this case, it is best that your business invests in an emergency fund, which will keep your company still new and growing. While you can invest your own business’s funds in this fund, you can also opt for a business loan that will help cover any unexpected losses or expenses.

3 costly personal loan mistakes and how to avoid them

There will come a time, at some point in your life, wherein you will face an emergency financial situation. In this situation, while there may be plenty of options available, the personal loan has always been a viable option for many.

While there are plenty of benefits to this loan, like any other loan, you will need to fulfil certain criteria. A failure to do so would not only result in a loan rejection but also the possibility of a debt trap. With a few simple precautionary steps, you can avoid making your emergency financial situation from becoming more drastic than it currently is. By being aware of the possibility of certain loan mistakes, you can learn to avoid them. Given below are some common mistakes to avoid:

Failure to check your credit report: When you borrow funds or repay a debt, it can affect your credit score. Therefore, if you have taken a previous loan, or paid off a previous credit card debt, it is crucial that your previous lender updates your credit repayment to the credit bureaus. As most lenders make it mandatory to check a lenders credit score before reviewing the loan application, such data can affect your loan application. Alternatively, any clerical errors on the credit bureau’s or lender’s part may also lead to wrong information being included in your credit report. This, in turn, can affect your loan application. To avoid such a situation, a quick glance at your credit report is a must. In this way, you can take the necessary steps to correct your report before beginning the application process.

Failure to review your repayment capacity: This is another mistake made by plenty of personal loan applicants. These individuals often believe that they can afford any loan amount, just because the loan application process is convenient. In this way, the end up over-stretching their finances by borrowing funds which are beyond their repayment capacity. Additionally, they also may end up underpaying, which can lead to increase debts and can even affect their credit score. This would lead to longer repayment tenures and higher interest payouts which in turn can affect your current financial situation. To avoid such a situation, you must take into account your daily living expenses, current debts, and investments for future financial goals.

Submitting multiple loan applications: When an individual makes a personal loan application, lenders often report it to the credit bureau. This, in turn, gets recorded in the enquiry section of your credit report. When approaching the next loan application of a different lender, the lender will review your credit report, including the enquiry section. Such a report may not work in your favour as you may pass off as a hungry credit borrower. Therefore, they will be cautious when approving your application, which may either lead to high rates or a possibility of rejection. To avoid this situation, you must carefully consider your loan application. Conduct a thorough research of all the lenders and their offering before you apply for a loan.

How to make a smart investment with foreign currency?

Ask any financial investor about investing, and the first thing they will advise upon is diversifying your portfolio. While options such as the stock market or international markets may prove to be the ideal option, they both have their own set of advantages and disadvantages.

However, over the last few decades, trading foreign currencies, also known as forex trading, has become more available to the public over the big money investors. Not only has this market been open to the public, the trading platform has also made it easier for investors to track and trade within the market in real time. This allows participants to gather and act upon real-time information, which will benefit them in the foreign exchange.

No doubt, with the right investment, you will be able to make a smart investment and get high returns. However, you investment will only benefit you once you are aware of the advantages of it. Given below are the different advantages to forex trading:

Advantages at home: Apart from the diversity, another benefit of the foreign exchange trading is taking advantage of the home currency when it goes down south. You only need to bet against it. The lower the economy goes, the more you can benefit from it. Additionally, you can use this form of trading for other foreign currencies. However, you need to be aware of the financial market situation before you make such an investment least it backfires on you later on.

A limited risk option: The financial market is very volatile, which can make any trading, an exciting adventure. As much as you can get an adrenaline rush on each trading you make, it would require plenty of research and homework like any other investment. Even then, there might not be any guarantee. And as with any investment, the odds can turn against you. However, foreign exchange trading offers a better protection. Through this form of investment, you cannot buy a foreign currency on a margin. This prevents you from purchasing a bad leverage, which will leave you owning more than your initial investment. While you can lose your investment, like any other option, you will still have a limited amount to invest. This is maximum amount you can risk, which allows you to invest what you are willing to lose.

Take advantage of global options: No doubt, it can be a tedious job for individual investors, to make an advantageous investment in companies abroad. Additionally, certain regional markets may not possess the same risk levels as another. However, forex trading offers its investors a general platform to bet on the global financial markets. For example, the European market may currently be in turmoil, but the Asian market may still be booming. As various factors, such as the government or investors themselves play an important role, in influencing the market conditions. Just by being aware of them, you will get an insight on how you can invest.

Tricks to help you increase the credit limit on your card

There are plenty of benefits to using a credit card. Not only will you have access to funds which can be repaid later, it can also be used to improve your credit score. While the credit score is an important factor in the long run, when using your credit card, your credit limit plays an important role. A higher limit means high expenditures. With a low or free interest period, you can make multiple transactions which can benefit you.

So how can you take measures to increase a higher spending limit? Given below are a few suggestions that can assist you.

Avoid requesting too soon or for too much

Most credit card lenders incorporate a system wherein your credit is reviewed after a fixed period of time. However, if your lenders do no incorporate this system, you will need to contact your lender and request an increase. However, this request must be conservative and must be done at most after six months on receiving your credit card. When you issue a request, your lender will most probably review your expenditures and card usage. Based on their review, they will increase the credit limit at the discretion of the company’s regulation. Be prepared to get an increase of 10 to 12%. By chance of your request gets rejected, you must wait for 3 to 4 months before placing another request again.

Wait for an automatic increase

The best way to get an increase in your credit limit is to wait for your lender to increase it automatically. In this way, you are not required to do anything. As a part of their service, most credit card lenders periodically review customer accounts, to determine if they should get an increase. Once the lender deems your eligibility, you will automatically get a hike. The fastest way to get this automatic increase is to ensure that your account has a relatively low limit. A credit card with a higher limit is less likely to get a hike as compared to a lower limit.

Use your credit card frequently

The best way to grab the attention of your lender when it comes to increasing your credit limit is by using your card on a regular basis. Additionally, you will also need to pay back the funds on a regular basis. One way to do so is by using your card for a single high expenditure, and pay it back for several months in a row. Spending funds in this manner will indicate that you require more funds, wherein which you can handle it. Alternatively, you can limit your cash expenditures whenever possible and use your credit card. You can use the cash to pay off the balance within the billing cycle. In this way, not only will you build your limit, but also your credit score at the same time.

All you need to know about mobile banking and mobile wallet

The financial market is competitive like any other. To stay above the competition, these financial institutes are now investing in new age product innovations and customer centric models. Some of the new age products include the mobile wallet, which is slowly gaining popularity over the last few years.

In reality, the mobile wallet is a niche product. Over the last few years, it has evolved to the ideal financial product while facing, technical specifications, competing brands, consumer education and security concerns. However, at the basis of this mobile wallet, lies the mobile phone.

Millions of individuals are host to not one, but at times, multiple mobile phones, especially in India. It has come to such a stage where these millions, are dependent on their mobile phones. Although previously, mobile phones were used only for communication purposes, today, multiple activities are conducted on this platform, including mobile banking.

But with the rising trend of mobile wallet, what is the difference between this product and mobile banking in India? Given below is an insight into these two entities.

Mobile banking is a financial service that allows customers of a financial institute to conduct some financial transactions through a mobile platform. Through mobile banking in India, a customer can transfer money, make a deposit or even check their balance no matter where they are located or which bank they have invested in. Mobile wallets, on the other hand, is a product, as a part of the services of mobile banking. This helps a customer store their financial information, card details, vouchers or even transit tickets on an organised or secured platform on their mobile phone. In other words, this mobile wallet functions like a virtual banking card, which can also be used to make a point of sale purchases. This allows a customer to view cards and choose a payment or transaction method that is preferable to them. As a user of mobile wallet, it allows you to get a real-time view of all your transactions. This improves interactive money management, thus allowing transactions to be more secure. In addition to this, you will have all payment sources in one place, making it simple for any purchases. These wallets also help banks address customer’s problems such as carrying several cards or even tracking due dates and offers. Additionally, banks also get an idea of the customer’s buying behaviour, which allows them to target and offer a relevant financial experience.

Just like the popularity of mobile banking in India, so has the popularity of mobile wallets increased. Plenty of individuals in India have already invested in apps that are basically mobile wallets. However, not many banks have included this product as a part of their financial services. As in the coming decade, plans have been made to incorporate mobile wallets as a part of major financial institute’s services in the near future

Do you know the risks of mobile banking?

Over the last few decades, the use of mobile phones has considerably risen. Today, mobile digital media has now outpaced desktop usage. If you walk into any office, restaurant or even public transport, you will see mobile phones in the hands of business people, students, children, parents and even retirees.

While plenty of individuals may have a mobile phone, the usage may differ. While the main purpose is for communication, other facilities such as browsing, downloading, media related activities and even mobile banking, are also used. However, although there may be several benefits, there are also plenty of risks. As a mobile phone user, it is crucial that you are aware of these risks to that you can be well prepared against them. Some of the risks involved in this form of banking include the following:

Mobile malware: Ever since mobile phones have been introduced to the public, they have involved to a form of the telephone to pocket size computers. Similarly, these mobile phones also face the same risk as any computer. In this way, as a mobile phone user, you must be aware and recognise the risks that can affect your phone as much as your computer. Mobile malware in particular target mobile devices through the form of viruses, Trojans, spyware and even rootkits. By setting up an anti-virus system or restricting downloads from untrusted sources, you can protect yourself from any mobile financial malware.

Flawed mobile applications: Mobile apps may be safer than using your mobile browser. However, the security of the mobile app depends on its platform design. Certain mobile platforms designs are open-coded, thus allowing developers to place their codes, which comprise on the security of the app. This, in turn, will increase the vulnerabilities of the app, thus allowing fraudsters to exploit it. As a banking app, your financial data or account can get comprised. To avoid this situation, you must download your apps from trusted sources. Additionally, check to see if your apps possess the right certification. Avoid downloading apps from third party sources, as they leverage credentials from other applications to gain access to your financial information.

Avoid Unsecured WI-Fi Networks: For many mobile users, a free Wi – Fi is a coveted luxury. Plenty of establishments such as restaurants, cafés, airports and other public places may offer free Wi – Fi connections. However, the security measures on these networks may not be up to mark. At times, hotspots can be spoofed by fraudsters, by using similar wifi network names as the establishment network. Even irrelevant data such as your name and identity can compromise your financial details and account as fraudsters can seek this information to access your account in the first place. To avoid this situation, you must avoid using any free network. If you must use this network, you must ensure that you don’t access any mobile banking accounts that can be indirectly comprised.

What are the factors you need to be aware of when opting for online trading?

Online trading has become an ideal source of income for plenty of individuals, whether one is opting for a stock trading as a secondary form of income or as a hobby. But to maximise the opportunity, it is important that you are aware of what online trading has to offer.

Plenty of individuals are familiar with online trading, for many, it can still feel intimidating. While hiring an online broker can make a considerable difference, you still need to be aware of certain factors of online trading, namely, the online trading account. Here are some factors you need to be aware of to make the most of the online stock trading and investing:

Choose the right online trading company: There are plenty of online trading companies, each offering different profiles, incentives, and deals. To get a good return on your investment, it is crucial that you do your research about the different companies in the market. To make the right decisions, you should look out for accurate facts and data. There are plenty of online brokerages and platforms that will provide you with the ideal assistance in the form of tools and required information. Factors such as company’s reputation, customer service, and reviews will provide you sufficient information to make your decision.

Look out for the rate of commissions: Opting for online trading might be cheaper than the traditional means of stock marketing. However, while you might find it expensive to pay for a broker, you may also end up paying for each transaction you make through an online trading account. This normally occurs with large companies. Therefore, it is crucial that you make the necessary research before investing.

Keep an eye out for hidden costs: Even though trading costs may be considerably cheaper as compared through a broker, you will still need to look out for hidden costs and facts. You can be aware of these facts when you read the fine print of your investment contract. It is essential you know what you are getting into when you trade, as some mistakes can be costly.

Opt for a trading platform that is easy: Plenty of online trading platforms can be intimidating and confusing. Depending on your trading requirements, you will need an appropriate platform to help you navigate through the trading market. This will not only help you minimise the possibility of costly mistakes but also help you focus on setting up alerts for it.

Create a manageable investment portfolio: Imagine if you can get good returns from one company, how much would it be if you invest in multiple companies? It is not uncommon for investors to have multiple investments in their investment portfolio. When conducting your initial research, you must keep track of what all they are offering. Judging by their offerings, you can build and maximise the returns based on your preference.

How can you benefit from holding multiple savings account?

When it comes to opening a savings account, the first factor you will consider is rates. Normally, we associate a higher interest rate for a good choice. However, contrary to that belief, having one account will only comprise your financial expenditures.

No doubt opening and managing a single account will seem convenient. However, imagine using this account to save for all your bills, additional luxury financial expenditures, emergency funds and other similar expenditures. Now doesn’t it seem better to open multiple accounts? Here are some reasons as to why you should hold multiple saving accounts today:

Focus on saving for multiple goals:
You and your friends have planned an international trip at the end of the year. Suddenly you realize you need to save up for your insurance renewal. Without realizing it, you may end up taking a part of your funds delegated for your insurance renewal to book early bird tickets for your trip, only to realize you don’t have sufficient funds for the renewal. With a savings account, you can focus on one goal at a time. In order words, you can plan for the renewal of your insurance AND go for your international trip too.

Keep a track of your goal:

While you may be a master at multi-tasking, it can be quite difficult to keep track of long-term financial goals. This is especially difficult if you keep using the funds from your single savings account to satisfy all your financial requirements. In the end, you will be wondering exactly how many bills did you pay, to end up with such a low savings? Instead of leaving everything to your bank statements as a reminder, you can set up separate saving accounts for specific purposes. You can even set up the account to send you alerts for deductions or any transactions made to help you keep track of the funds in each of the accounts.

Keep track of how much you are investing:

With a savings account, surely you will be investing a small amount on a regular basis. However, if you are investing funds for multiple goals at the same time, you will only be investing an amount that, when dived for each goal, will amount to a small figure. In other words, you may end up spending literal years, just so you can collectively satisfy the goal for that savings account. When you break down your goals into separate saving accounts, it’s much easier to see your progress and how far along you really are.

Apart from these reasons, there are plenty more. However, by now you will be aware how beneficial multiple savings account can be to you.

How can you take advantage of the features of a current account?

Bank accounts are a great way to store your funds for safe keeping. It is also the mean to invest your funds for better returns, with the right investment strategy. For such a requirement, we have a saving account.

However, certain restrictions with this account withhold the functionality of banking transaction. For example, the saving accounts offer the ability to withdraw funds. However, the account holder can only make limited free withdrawals. For business oriented account holders, this can be a major drawback, especially when the account is tied up to their business.

This is where the current account comes into place. The features of this account allow the account holder to make multiple transactions such as deposits and withdrawals amongst many others. Apart from this, here are additional features of the current account you can take advantage of:

• The current account is best used to operate businesses. It can also be used for any business purposes, namely if you will be making regular transactions with another business.

• You can make transactions through NEFT channels. The national electronic funds transfer is a nationwide payment system that facilitates a one to one fund transfer system. Under this scheme, the account holder can electronically transfer funds from one bank branch to another. Depending on the bank or financial institute, the transactions can be done free or at a marginal rate.

• The current account uses a real-time gross settlement system. This system facilitates the online transfer of high-value funding between banks or financial institutes on a real time basis. Like the NEFT rates, this transaction can be done free or at a nominal rate, depending on the institute.

• Some banks or financial institutes offer flexible services depending on the requirements of the business. For example, during peak seasons, there is a higher possibility of transactions. While this may not put pressure on maintaining the minimum average balance, during offseason, it will be a problem. In such a case, banks and financial institutes will be lenient enough to allow a low average balance, without suffering any penalties for it.

• Depending on the bank or financial institute, you can even conduct transactions in foreign currency. This can be conducted under the approval of the RBI. Through this process, your bank or financial institute will maintain a record of your foreign exchanges through regular statements. They will also provide you with a preferential rate when converting your foreign currency into the local currency. This account will also be designed to protect your investments, during exchange rate fluctuations.

• Some banks will offer extended benefits to importers and exporters. Some of these specialized features include zero balance accounts that enable the account holder to utilize financial resources more effectively. Some of the other features also include free inward remittance and no charges on foreign inward remittance certification or even bank realization certificate issuance.

Did you know about these myths of fixed deposits?

Over the last few decades, plenty of new age investment products have risen, and designed to suit the modern financial requirements. In spite of these attractive features, fixed deposits have always been a favourable option for traditional and new age investors. The new generation has enjoyed a great rise in disposable income, looking out for optimized investment options that will offer them the best of returns.

However, owning to its hoary features, plenty of myths associated with this product have risen over the last few decades. This is especially occurred since this product has not conformed to the ever changing financial trends. Here are a few common myths of the fixed deposits and truth behind them:

Only banks offer this termed deposit:

Many individuals are under the impression that only banks offer fixed deposits. However, in addition to nationalized and private banks, companies and other non–banking financial companies have the authority to accepted investments in the form of fixed deposits. These fixed deposits offer you the same benefits as banks, but with better rates. However, for better security and returns, banks is the ideal choice for it.

Taxation on interest of fixed deposit:

The return on interest on fixed deposits is fully taxable. Additionally, it will be included in addition to your total income, under the category of income from other sources. If the interest you earn exceeds Rs. 10,000, then TDS will be deducted at a 10% rate. However, since the marginal rate of the income tax varies between 20% and 30%, any excess liability associated with your taxation will be needed to be paid at the time of filings of your returns. If you taxable income is zero, you can avoid TDS by submitting Form 15G or 15H accordingly.

Fixed deposits give you tax benefits:

You can get tax benefits under section 80C for your fixed deposits. However, this is only applicable to specific deposits, which have a lock-in period of 5 years. To make the most of this tax benefit, you must choose a scheme that will provide you with a tax saving option.

You can break your FD for any emergency financial requirement:
Most financial institutes and banks offer the means to break the fixed deposit if there is any urgent financial requirement. However, when this step is taken, the rates of your termed deposit is reset. In other words, you will earn lower interest. As an alternative to this solution, some financial institutes offer and overdraft facility against a fixed deposit. In other words, you can use this deposit as a collateral for a loan.

In reality, fixed deposits, have passed through several decades of financial progression. However, the myths associated with this deposit, are mostly not applicable. By debunking these myths, you can make the most of your investment by creating the ideal investment strategy.

Debit card fraud: What are the steps you can take to protect your debit card?

financial tools are also Banking cards are becoming the means to a convenient financial service. Additionally, these designed to make a better financial sense in several cases. More and more individuals are opting for banking cards, such as the ATM, credit and debit cards to make convenient or daily financial transactions.

Amongst all the banking cards, the debit card has been the most favourable option. One of the main reasons why that is, it offers a combination of both ATM and credit cards facilities. You can also use this to collect credit points and reward points whenever possible. However, this banking card is as good as the security benefits it offers.

No doubt, with the progression in technology, has not only a provided financial benefit, but also the means to breach security access. In other words, scammers can easily access your financial data and account, just through your debit card.

While revoking your debit card may not be an ideal solution, you can take the following methods, to protect your banking card.

Check your card ready for unusual additions:

The debit card comes equipped with an ATM facility, wherein, you can withdraw physical funds from an ATM machine. You only need to swipe your card through the reader and input your PIN code. Once this is done, you can input the amount you need to withdraw. However, at a time, scammers can tamper with the card reader, inserting an illegal piece of equipment which can not only read your card but also store the details. Once you have withdrawn your funds and your card, the scammer can easily access this illegal equipment and copy your bank details easily. To avoid such a situation, you must check the card reader for any unusual additions or changes.

Keep a track of your transactions through secured alerts:

Keeping an alert on your transaction is one way to ensure whether your banking card is well protected or not. As a regular user of your debit card, you will be aware of when and how many times you will use the card to a point you will have your own trend. Setting up an alert system for all your transactions will help you detect if there is any unusual activity on your card. These alerts also come with added details, such as a number of funds withdrawn and the location from where it was accessed.

Contact your bank and or debit card company:
If you suspect that your banking card details have been compromised, you must contact your card provider or bank. The institute will set up the required flags to monitor your card activity and alert you of any unusual activity. Additionally, if there is suspected activity, your card provider will take the necessary means to prevent any further transactions from occurring.

Internet Banking 101: Preventive measures against malwares

Over the last few decades, internet banking has become the means to manage one’s finances today. An individual can easily go online and make the required financial transactions such as withdrawals, deposits or even requests for certain financial instruments such as cheque books or banking cards.

Plenty of individuals use internet banking as a convenient mean to access funds whenever required from any location. However, it also has plenty of risks associated with, namely, one of which is malware. This malware contains an assortment of malicious and harmful programming, in a form of software. Without your knowledge or awareness, it would install a software on your computer, laptop or even the mobile phone.  Through this software, the malware will be able to steal information and send it to a different direction than what it had intended to.

Malware can come in different forms. Some of the common forms include the following:

• Ransomware which is software that encrypts files. The file can only be decrypted if the funds are paid.
• Phishing is a means where crucial data is stolen through a seemingly genuine source. For example, you might get an unexpected email indicating an issue with your online bank account. In order to correct this issue, you will be instructed to email back your bank details. This will also come in the form of external links, with instructions to click them for further details.
• Vishing is similar to phishing where the scam is done over a telephone. An individual pretending to be a representative of the bank or financial institute will call claiming a requirement for your bank details. If you submit these details, it will be used to create a false identity or change the access on your account.
• Smishing is similar to phishing and vishing. Similar to emails and phone calls, your smishing is when you get an SMS from a seemingly genuine source. However, the source is a scammer pretending to be a genuine sender.

Now that you are aware of the different forms of malware in internet banking, here are steps you can take to prevent malware from accessing sensitive financial data.

• Ensure your phone, desktop or laptop is protected with a PIN that is difficult to decipher. Do not reveal your PIN to anybody, as far as possible even close friends and family. If possible, change your password every three months, using a unique combination of letters, numbers, and punctuations for your various login details.

• Ensure that your system is updated with the latest software or antivirus programs. This helps you protect yourself against new malware in the market.

• Opt for an update system wherein you get an instant alert anytime your account is accessed or if a transaction occurs.

• If you get a call from a representative from your bank or financial institute requesting for your bank details, refrain from taking any action. No financial institute will request such details.

Why you should opt for a recurring deposit for your child today?

In today’s day and age, the financial requirements and expenditures have considerably increased. Not only would you need to consider how to minimize excessive expenditures, you will also need to create the ideal investment plan for your future.

While every individual may have fixed expenditures, these are no different for parents of young children. No doubt, as these children grow older, so would the expenses increase. This can include educational expenses, health expenses and insurance covers amongst many others. However, there will be a time, wherein these expenditures can become unaffordable. At such a stage, would you really want to compromise on crucial financial proceedings in order to compensate for this expenditures?

While that may seem like an ideal option, there are alternate means to satisfy the required financial requirement. In order to do so, one must start saving right from the beginning itself. This can be achieved through a recurring deposit. Through this termed deposit, a small amount of your income will be invested in another account for a fixed termed. This sum can come from your disposable income, especially after you have satisfied all your other financial requirements. Depending on the amount that is invested, you can also earn interest on the investment. So how can you use this account to invest for your child’s future? Here is how it can be done:

Fixed monthly investment:

With a recurring deposit, you will need to invest a fixed amount every month. This is as similar as paying off an EMI. For those who have a large disposable income, this is an ideal investment strategy. Not only do you reduce the chances of unnecessary expenditure, but you also earn an interest on the amount that you have invested. Once you begin inculcating the habit of saving funds on a monthly basis, you can extend these savings for a longer period of time, say, for example, 10 years or more. When the time is right, you can use the funds of the account, for any of your child’s expenses.

Fixed duration:

Most recurring deposits come with a fixed tenure. This can be a minimum of 6 months or even 10 years. In this way, you can plan your child or children’s future, with a fixed tenure. Say, for example, you can start an investment strategy right from birth until 4 years so that there are sufficient funds for the initial educational years. Additionally, you can open a compounding recurring deposit, in order to optimize your investment with minimum effort.

In today’s day and age, the financial requirements and expenditures have considerably increased. Not only would you need to consider how to minimize excessive expenditures, you will also need to create the ideal investment plan for your future.

While every individual may have fixed expenditures, these are no different for parents of young children. No doubt, as these children grow older, so would the expenses increase. This can include educational expenses, health expenses and insurance covers amongst many others. However, there will be a time, wherein these expenditures can become unaffordable. At such a stage, would you really want to compromise on crucial financial proceedings in order to compensate for this expenditures?

While that may seem like an ideal option, there are alternate means to satisfy the required financial requirement. In order to do so, one must start saving right from the beginning itself. This can be achieved through a recurring deposit. Through this termed deposit, a small amount of your income will be invested in another account for a fixed termed. This sum can come from your disposable income, especially after you have satisfied all your other financial requirements. Depending on the amount that is invested, you can also earn interest on the investment. So how can you use this account to invest for your child’s future? Here is how it can be done:

Fixed monthly investment:

With a recurring deposit, you will need to invest a fixed amount every month. This is as similar as paying off an EMI. For those who have a large disposable income, this is an ideal investment strategy. Not only do you reduce the chances of unnecessary expenditure, but you also earn an interest on the amount that you have invested. Once you begin inculcating the habit of saving funds on a monthly basis, you can extend these savings for a longer period of time, say, for example, 10 years or more. When the time is right, you can use the funds of the account, for any of your child’s expenses.

Fixed duration:

Most recurring deposits come with a fixed tenure. This can be a minimum of 6 months or even 10 years. In this way, you can plan your child or children’s future, with a fixed tenure. Say, for example, you can start an investment strategy right from birth until 4 years so that there are sufficient funds for the initial educational years. Additionally, you can open a compounding recurring deposit, in order to optimize your investment with minimum effort.

Fixed rate of interest:

Normally, the rate of interest in a recurring deposit is fixed. It remains the same for the entire duration of the recurring deposit. Although the interest rate may differ from bank to bank, you can always opt for the option that offers you the best returns over a long tenure.

Normally, the rate of interest in a recurring deposit is fixed. It remains the same for the entire duration of the recurring deposit. Although the interest rate may differ from bank to bank, you can always opt for the option that offers you the best returns over a long tenure.

Popular mistakes of forex trading and how to avoid them

Forex trading offers you a lot of benefits, especially with the right market conditions. However, like any other trading process, there are certain factors one would need to be aware of. As a forex trader, especially in the initial stages, you will be bound to make a few mistakes when investing.

Learning from these mistakes is a crucial step. Not only will it help reduce the chances of occurring again, but it also helps a borrower reduce any unprofitable returns or loss. By being aware of the possible mistakes, you can take measures to avoid them, and thus reduce any loss on investment. Here are some of the forex trading mistakes and how you can avoid them today:

Treating forex as a pastime:

The attractive returns on investment often attract investors to capitalize in this market. Over time, the effort for this investment is lost and so is the zeal. This is when the investment becomes a pastime for many. To avoid such a situation, you must maintain a stringent mean of investing. An investor must take measures to analyse data, design investment strategies, test different plans and keep track of the changing market trends.

High expectations:

No doubt the stock market offers high leverages and low entry barriers. This has contributed to its image, which shows the stock market as the means to get high returns in a short period of time. However, like any other trading, it requires persistence and discipline, especially in the long run. You will need to set goals on a regular basis and ensure that you get consistent results.

Being caught off guard:

There are times when you would miss a sudden change in the market, and miss out on a great investment or even prevent a bad investment from occurring. Plenty of investors are suddenly caught off guard in this way, which may seem overwhelming for initial investors. To avoid such a situation, most investors suggest incorporating a stop loss order. This order is designed to limit an investment loss in a security. Through this order, a purchase or selling of a security will take place, only when it reaches a certain price.

Analysing performance for the right term:

As any trader will say, it is crucial that you analyse your trading at the end of each session. Whether it is a short term or long term, it should be analysed. Forex trading is a long term activity. Although may not be able to focus on profits every day, you need to focus on applying a method that will offer you a long term expectancy. The best way to do so is to monitor your results carefully.

Apart from these mistakes, there are plenty of others you will need to keep track of. While forex trading may seem to require considerable experience and skill, it will also require you to reduce the chances of making such mistakes in order to avoid any considerable losses.

What do you need to know before you apply for a loan against fixed deposits?

Ever since banks and financial institutes have offered the means to invest funds for better returns, termed deposits, such as the fixed deposits have been a favourable option. These fixed deposits have always been the go – to options amongst several other options. Even with the addition of newer investment options that allow an investor to make the most of the economy, fixed deposits are still a popular choice.

At the same time, there has been a considerable increase in the disposable income of several individuals. These individuals are also looking to expand their financial aspirations by looking for ideal options that will allow them to optimize their financial requirements through financial investments.

This is when the fixed deposit plays an important role. Through this termed deposit, you can invest your funds and yet get the required liquidity in the form of a loan. You can even use tools such as the fixed deposit calculator to optimize your investment strategy. By using the termed deposit as a collateral, many banks, and financial institutes offer a loan to satisfy all your financial requirements.

If you already have a fixed deposit, you can easily apply for a loan in the same institute. However, before you take this step, there are certain factors you need to be aware of. These factors are given below:

• Banks and financial institutes tend to treat borrowing against fixed deposits as an overdraft facility. Under these conditions, the loan is not treated in the technical term per se. The reason for this is that the funds invested in the fixed deposit belong to the borrower. Through this process, the borrower is only using the funds as a means of collateral, with the lender, in order to compensate the amount that is being borrowed.

• Depending on the loan, the borrower is applying for, the interest rates will change. For example, an individual is applying for a car loan. As compared to a regular car loan, the fixed deposit collateral car loan offers a lower interest rate. Therefore, depending on the loan required, one can even get the ideal interest rate.

• Most lenders offer a lending amount to a fixed rate. Normally, a bank will offer only 8 to 85% of the entire fixed deposit amount. However, this amount may or may not include miscellaneous amounts apart from the principal amount required for the particular loan a borrower is applying for.

By now you can see that the fixed deposit offers the ideal benefit for those seeking a loan. For those enjoying a large disposable income, this is the ideal option for those who want to make the most of their investment, while looking for other alternative options. To know how to make the most of your fixed deposit, you can use tools such as the fixed deposit calculator, to see what you can avail of.

Are you aware of these factors before you open a Demat account?

The stock market has proven to be a viable investment option over the last few years. Although it has its own set of risks, the returns on the investment is are extremely attractive, especially with the right market conditions.

Therefore, it comes as no surprise that plenty of individuals are now turning towards this market to invest their funds for better returns. As a part of this process, an investor would need to possess certain investment instruments. One of these includes the Demat account. This account works and functions in the same way as a regular bank account. Through this account, you can store the shares which you have either sold or purchased.

As a part of investing in the stock market, it is mandatory that you open this account. While it may seem as simple as opening a bank account, here are certain factors you will need to be aware of before you begin the application process. Here are some of the important features of the Demat account you need to be aware of:

Look out for brokerage charges and hidden costs:

Any time you purchase or sell stock, your Demat account provider will ask for a certain brokerage fee. This fee can be charged either in a fixed amount or percentage form. For example, your Demat account provider charges you a fee of 0.1%, you will need to pay Re 1 for every Rs.100 worth of stock you purchase. While this may seem like a small amount, the larger the amount of the stock, the larger will be the fee. Nevertheless, normally the fee to trade in derivatives and mutual funds is separate. In addition to this, you must look out for the annual maintenance charges, also known as administrative charges. This amount can vary in between Rs. 300 to Rs. 500 depending on the financial institute you are investing through. Apart from this, some of the additional hidden costs you need to be aware off include advisory fees and statement charges, in addition to the charges for rematerializing or dematerializing your stocks.

Technology platform used during the investing process:

The platform that is used to stock market trading is an important choice. In today’s day and age, this is no different, especially with the technology that is used to trade. Therefore, as a serious investor, it is important that you be aware of the technology that is being used when you begin your trading. In order to ensure that you get the best out of the technology that is being used, you should check your platform offers:

• Real-time details relate with stocks
• Clear details on bidding and asking price
• Details on margin money
• Clear details on costing of portfolio
• Financial data, history, important events and possibly a quick analysis on the company.

Creating a separate bank account:

Using a combined bank account may be beneficial and convenient to use when trading. However, it is advisable to open a new bank account for trading purposes. The reason for this is because you will need to purchase and sell stock on a continuous basis during trading hours. Keeping a separate Demat account, other than savings and salary account makes it much easier to track alternate monetary transactions.

How to make the most of a flexi recurring deposit?

When it comes to financial investments, there is always a requirement for a disciplined, regular and systematic saving habit. While it may seem like a difficult process for many, several banks and financial institutes have introduces several flexible investment options to help you invest in the most convenient manner. One of the options includes the recurring deposit.

With the normal recurring deposit, you will need to invest a small amount on a fixed date and on a monthly basis. As opposed to this, certain recurring deposits will provide you with the freedom to deposit any amount of sum you require, at any time you want. Additionally, some financial institutes or banks also offer the freedom to skip an installment without worrying about any penalty about it. Some banks and financial institutes also offer flexible RD’s to appeal to the younger generation, so as they can start investing at a young age. All these features come under the flexible recurring deposit.

With all these offerings available, how can you optimize your investment? By being aware of certain features of this termed deposit, you can take advantage and create the ideal flexible deposit.

Here are some of the few features you need to be aware of:

• It is a high probability, that the more freedom one receives, the higher is the chance to misuse it. The Flexi recurring deposit is one way to avoid this chance. Through this deposit, you can use the recurring deposit calculator to calculate the ideal sum that needs to be invested. Once this is done, you can set up an auto debit instruction for your deposit. In this way, you can control how much of your funds will get deposited, while sustaining other financial requirements. Through this process, your fund will already be deposited after your salary has been credited to your account.

• The second condition you must be aware of is flexible investment amount. Through this step, you can easily save your funds, without much effort. With a Flexi recurring deposit, you can take a conscious decision as to when and how much you can invest on a monthly basis. However, banks or financial institutes that are offering this feature, often also provide certain caveats to this feature. One of the most common conditions is minimum or maximum investment amount. Therefore, if you want to invest with a flexible amount, you will need to invest an amount that is within the given investment amount range. Depending on the amount you will invest, the resulting interest rate is calculated.

• Added to this feature of the termed deposit is the tenure of the investment. Some banks offer a tenure that lasts between 6 months to 5 years. However, you must be aware that the rates for during this tenure will not remain the same. You can use the recurring deposit calculator to calculate the ideal tenure and investment amount as per your financial requirements.