When malware is a threat to your mobile banking

You might be aware of the basic fraud prevent steps such as not clicking on suspicious links or even downloading any unknown apps. After all it may lead to installing a threat on your phone which can compromise your data. But what if the malware threat comes pre – installed on the mobile device itself?

Recent research has indicated that certain malware has been detected on brand new phones' software. They have been planted deep within the device and designed to steal information and display ads. Furthermore, the malware would attempt to gain full system privileges, wherein which, it would corrupt or delete data, erase the storage or steal personal information. It would even hijack the screen and spam contacts. Some would even block the usage of the device until a ransom was paid. The alternate solution here would be to erase everything through a factory reset.

This development underscores the fact that malware threat to your mobile is very much in existence, even before you operate it. Imagine you using your device regularly for mobile banking where you need to access your card details or even your bank account. Such systems can easily compromise your finances and put them at risk for fraudsters.

Here is how you need to be aware of malware:

Fraudsters Follow the Money: Cybercrime brought on by malware, is very much about funds. What was once a trivial measure of pinging online portals in search of vulnerabilities to exploit, has now exploited to an organised enterprise that focuses on stealing data and funds. In fact, with the aid of technology’s speed, power and storage facilities, malware can be easily penetrative in every aspect of a user’s life, which also includes mobile banking. Since most mobile platforms are still developing their security protocols, it represents an attractive target for most money targeting fraudsters. For example, a few apps were known to be infected with the XcodeGhost, a malware designed to turn the device into a botnet, creating a zombie-like a network that disperses spam or any other activity as commanded by the controller.

Rooting targeted OS: Targeted attacks are often sophisticated and most concerning, especially for mobile banking facilities. They target the vulnerabilities in the phone OS platforms, and root the victim’s device and begin spying. It would include accessing messages, calls, emails, logs, and more from apps including Gmail, Facebook, Skype, WhatsApp, Viber, FaceTime, Calendar and Line along with other mobile banking apps. One of the most notable malware of this functioning was Pegasus that attacked the iOS vulnerabilities. With the root access, malware provides the relevant leverage over a device. It is concerning for any person or business wanting to protect sensitive data, such as their bank details.

When should you use traveller’s cheques when travelling abroad?

Traveller’s cheques have been one of the most oldest and traditional forms of money exchange, as an alternate to physical currency. This cheque is similar to a normal bank cheque, as it receives a unique check number or serial number. In the occasion the cheque is lost or stolen, the provider can cancel the cheque, and get a new one.

Travellers normally use these cheques, specifically for vacations in foreign countries, as it was one of the safest ways to take a currency overseas. While plenty of individuals have moved onto banking cards and other forms of money transfer, these cheques are still in use in selected locations. Given below are a few instances where you can use the traveller’s cheques:

Locations where ATM’s are sparse: While the forex, debit or the credit card may be popular options for international travellers to access funds when abroad, it is convenient only if ATM’s are available. Even if the most isolated of destinations have a few financial institutes or banks, they will accept the traveller’s cheques. While it may take the time to complete the transaction, it is a better option that being completely cut off from any funding you may have.

When you are concerned about travel safety: Before the introduction of the ubiquitous ATMs, there was another reason why travellers opted for cheques. The main reason was safety. If you had a physical cheque, it could be cashed only if you penned a signature that matches the one where you wrote when you got the cheques. Unless your signature is copied to perfection, you need not worry about your funds being stolen. The same goes if the cheques have been lost or stolen as you can always cancel the cheque.

In the case of a true emergency: While there are plenty of benefits when it comes to traveller’s cheques, in the end, it boils down to one thing. It is safety, especially in the case of emergencies. In the case of the banking cards, the PIN can be stolen, your password changed, or even your card details compromised through a skimming device. Even more, your cards could be stolen and misused.

Eventually, you will be left with the little resource in finding your home, on such short notice. This is one wise reason why you should carry an emergency stash of traveller’s cheques. This will guarantee that funding will always be there, and it can be replaced quickly.

While there are several other financial options you can consider when travelling abroad. But when it comes to the traveller’s cheques, these are some of the important points you need to remember when you are looking for funding when travelling abroad.

What is the difference between the NRO and NRE fixed deposits?

The financial savings of local Indian residents and NRI’s are vastly different. For one, NRI’s will be earning in their local foreign currency. At the same time, they may or may not also be earning a small substantial amount from India through rent or dividends. Keeping these factors in mind, the government has set up a banking system that caters to the needs of these individuals. This is where the NRI bank deposits come into place.

The NRI deposit systems has been divided into two different accounts, namely the NRO and the NRE fixed deposits. They function similar to the local fixed deposits. These accounts offer a host of benefits such as repatriation, tax benefits, currency flexibility, etc. that make them the preferred choice for NRIs.

However, there is a considerable difference between the two deposits. They include:

Interest rate: In most cases, the investing bank will have different rates for each account. You will need to check the available rates, to know what the highest returns will be for you.

Taxation: When it comes to taxation of fixed deposits, the NRO is taxed. Any interest that is earned from an NRO FD is taxed, according to the Income Tax Act, 1961. This attracts around 30% of the income, which is comparatively high when compared to FD tax rates. On the other hand, the NRE fixed deposits do not attract any taxed on any income earned. This factor alone makes the NRE fixed deposits favourable over the NRO deposit.

Repatriation: NRO fixed deposits does not offer repatriation on the principal investment. In fact, the interest earned from this deposit can be transferred to a foreign account. NRE fixed deposits offer the option for full repatriation of funds, which includes both the principal and accrued interest to a foreign account. These accounts simplify the process of transferring funds earned from a local Indian account, making it a great deal.

Joint accounts: An NRI can opt for another NRI joint account holder, for the NRO or the NRE joint account. However, an NRI can only opt an NRO account jointly with an Indian resident. NRE fixed deposits cannot be opened with any Indian resident, even if the said individual is a member of one’s direct family.

Withdrawal and deposits: Only funds that have originated from India can be used to open and invested an NRO account and fixed deposit. This is not applicable for funds earned abroad. Funds from the NRE account be transferred into an NRO account for the purpose of opening a fixed deposit. However, funds from the NRO account cannot be transferred to the NRE account. Any withdrawals that have to be made from either account will need to be done only in INR currency.

Interest rates
The rate of interest in NRO and NRE accounts may vary according to the bank you are applying in. As such, it is imperative that you check the available rates to find the option with the highest returns for you. Typically, an NRE or NRO FD is offered with maturity between 1-20 years.

What are the benefits of using the Remit 2 India service to transfer funds?

When it comes to transferring any money, there are plenty of choices you can opt for. Some of the popular options include wire transfer, personal checks, online transfer and much more. Depending on one’s requirement, location and the urgency of the transfer, you can transfer the funds through the channel that is most appropriate to you.


But amongst the upcoming money transfer services, the remit2india is one such option. Through this money transfer service, you can avail the following benefits:

Get the best exchange rates and low charges: One of the main concerns about money transfer is exchange rates and charges. In most cases, the exchange rates will reflect the then rates in the financial market. During peak transfer seasons, especially around festive times or end of the months, the exchange rate can increases, causing you to spend more on the conversion rate more than the actual amount to be transferred. The same applies to the service charges. If the demand for money transfers are high, the service charges will also increase, especially if it calculated in percentage off the funds being transferred. Remit2india offers the best exchange rates and low charges, for any money transfer occasions.

Quick money transfer services: You may be accustomed to sending funds on fixed date on a monthly service, based on the speed of the transfer. However, in the case of financial emergencies, you will need to opt for a quick money transfer service. Most money transfers do offer a quick transfer but at a higher price. However, remit2india offers a money transfer service, which will not only make money transfer quick but also at an affordable price. This makes it an excellent option for those who want to make a quick money transfer, especially during any financial emergency.

Prompt transfer alerts: Making a money transfer will require two parties, namely the sender and the receiver. However, when you as a sender makes a money transfer, both parties need to be aware of when the money transfer is being made. At times, the money transfer service does not have the appropriate transfer service, leaving either party unaware of the progress of the transfer, causing them to either miss out on the money transfer or be unaware of any possible delay. Remit2India offers prompt transfer alerts every time a transaction takes place so that each party is aware of the transfer process in progress. You can set up alerts for custom transfers or even your regular payments.

The extent of money transfer services: Plenty of individuals make money transfers from over 24 countries. This means, they also have to transfer funds in different currencies. If the choice of foreign currency is not available, one would need to transfer it in the next approved currency. This would lead to further extra conversion charges, once the funds have been withdrawn in the local foreign currency. Remit2India offers a wide range of money transfer services, in over ten different currencies, making it the ideal choice for money transfer for your needs.

4 mistakes you need to avoid when making a telegraphic transfer

The telegraphic transfer, also known as the wire transfer, is a process that transfers funds from one institute to another. This has been a traditional form of money transfer from one bank account to another bank account.

Even today, making a money transfer through a telegraphic transfer can be quick, effective and cheap. However, any mistake you make can cost you time, resources and money. Here are some of the mistakes you need to avoid when making a money transfer through this medium:

Getting your account details wrong: As a part of the wire transfer process, you would require the bank account and routeing numbers, for the both the sender and the recipient. However, theses bank account numbers will have different formats that vary from country to country. If you are making an international money transfer, you need to be aware of the code and the bank account you will be transferring to. Any wrong detail in the account number will reject your transfer, or send it to the wrong account number.

Failure to convert the currency into the local one: When you make a telegraphic transfer, you begin the process with your currency, and expect the right currency to arrive at the recipient’s account.

However, not many are aware that the currency conversion also matters. If you are not aware of the currency conversion or even skip it, two possibilities can occur. Either the transfer will be rejected, or the bank might be converted the funds at a higher exchange. Either option will put a strain on the recipient, especially if it results in a delay of the delivery, or the funds transferred is lower than expected.

Being aware of the upfront fees only: There are two primary costs when it comes to sending funds on an international basis. The primary charge is the service fee that the institute will charge for sending money. The second cost is what you will end up paying, in order to change the dollars into the local foreign currency. These costing will change depending on the two currencies, and the provider itself. Most of the service providers generally mark the exchange rates for customers to make a profit on the transfer. You need to be aware of this.

Failing to check the estimated delivery time: Each provider will have a different transfer speed, especially if it has to be done overseas. Furthermore, some of the transfer options will have different payment methods, which will affect your delivery option, which in turn will impact the speed of your money transfer. Normally, paying with a banking card will usually speed up the delivery. However, it can be expensive when compared to the direct withdrawal from the bank account.

Tips to remember when participating in investment banking

Investment banking focuses on a specific division of banking, which is related to the creation and formation of capital for government, companies and other entities. Investment banks, in particular, provide the relevant advice and assistance in large and complicated financial transactions which includes acquisition, merger, or even a sale. They may also, if the need arises, issue securities as a means of raising funds for client groups or create the necessary documentation for a company to go public.

If you are planning to join the industry of investment bankers, here are a few tips you need to keep in mind:

Constructive greed is definitely good: While this may seem odd, or even badly misquoted, this is actually a crucial tip when it comes to investment banking. However, the key focus in this statement is the opposite of moderation, as the means to be greedy. You should be greedy for knowledge, for money, for life and for love, only if it is constructive to your investment planning and strategy. Else it will just result in bad decisions and high loss.

Constant vigilance: When indulging in investment banking, you really need to keep your eyes and ears constantly open. You need to be on constant vigilance, in order to know what’s happening in the market and whether you can make a quick buck investing in a particular company’s stock or lose out on one of your investments. If you think of opting for lunch meetings to get the investment gossip, be prepared to lose out on some great investment opportunities.

Don’t rely on emotion when investing: Sure, you will have a passion to invest, earn or sell. But don’t get too caught up with the power and promise this investing will give you. In fact, don’t let your persona life get to involved with investment business deals, for it, the backlash will leave you with more than a bitter taste in the mouth, it can leave you without as much as a single rupee from your savings.

The most valuable commodity is information: As previously mentioned, you should be greedy for information. With the right tools and sources, you can get the best details and the fastest information to essentially stay ahead of the competition. Anything else should be the second preference.

Do the opposite of what others are doing: This may seem something odd, after all, if there is a mass selling, wouldn’t it be odd to be the only individual to be purchasing? However, you can outsmart the competition, but you must be armed with the appropriate information of course.

Invest in the best cell phone technology: What better way to stay connected to the fast paced investment industry than by investing in the best cell phone technology? Not only will you stay updated with the latest information, but you can also get a good preview of what to expect with investing and thus base your investment decision on it.

Private banking versus wealth management: All you need to know

When it comes to finances, it is not only about earning, but also investing in the right sources. As a high net worth individual, earning in big amounts may seem convenient enough to be lax it at the earning stage and not go beyond that. However, the full financial potential of the earnings will not be utilized. Furthermore, financial protection will also not be put into place, risking the income and whatever minimum savings one has invested in. Furthermore, it will put family members who rely on this wealth at risk for their financial future.

As you can see, it is crucial that you invest in the right source, not only for yourself but also for your family. The available choices are private banking and wealth management. But what is the difference between these two options?

Given below are the differences:

Private Banking:

• In the general term, private banking normally involves a financial institution that provides financial management services to specific target audiences. These individuals normally include high net worth individuals, who have an asset value of a particular number. This banking normally tends to be exclusive, normally reserving their service for clients who already have a substantial amount of cash and other assets that can be deposited and invested in an account.

• They provide investment related advice, aiming to address the entire financial profile of each of their clients. This includes aiding clients in protecting and growing assets, providing individualised financing solutions and also help them plan and save for their retirement. They also create a structured plan to pass on their accumulated wealth on to family members or any other intended beneficiaries.

• As a part of their service, they also provide considerable perks to these individuals, in order to obtain them as clients. The larger the account, the more enviable rates and concierge-based services are guaranteed to them. They even have instant access to employees who are working with their accounts through a single call. Through this, they can easily contact their lead advisor on their accounts and make a transaction or transfer funds without any lengthy processing.

Wealth Management:

• Wealth management advisors focus on helping with financial planning, management client portfolios while providing a variety of different financial services in accordance with the client’s private financing choices.

•  Clients have access to an educated and experienced individual, who is well equipped in solving financial problems or even enhancing the client’s overall financial status. They also help them achieve any financial goal.

• They take the time to under the client’s stipulations or restrictions in regard to their investment of their assets. They create and develop investment strategies to help meet the client’s requirements. They continue to manage the client’s funds and utilised investment products that match the client’s stipulations.

How to make your money transfers faster and convenient

Our lifestyle and technology have progressed to such a stage, where quick money transfers have now become a necessity. Whether it is sending funds from one location to another, or from one country to another, this necessity remains the same. You can be sending funds whenever required, or on a monthly basis for maintenance.

No doubt, you will have plenty of money transfer vehicles available in the market, leaving you spoilt for choice. However, what choices will you consider when you need to make a quick yet convenient money transfer?

This is where the quickremit option will come into the picture. Here is how this service will give you the best feature for money transfer, and the ideal money for value:

The best of exchange rates: One of the main benefits of the quickremit money transfer is the good exchange rate. Plenty of money transfer services will offer you competitive rates. However, you need to look out for those that will offer you the best deal, especially in accordance with the amount you will be sending. This service offers you the best exchange rates, by making you aware of what are the current exchange rates. In this way, you will be attentive of how much you will have to actually spend in order to send money to the intended recipient.

Fees: Plenty of money transfer services claim to offer a money transfer service that is free. However, they will charge you a small service charge, transfer fee and exchange fee as a basic charge. Furthermore, based on the discretion of the lending institute, additional fees may be charged. Quickremit ensures that you are aware of the fees you are being charged, even before you make the transfer. Thus there is no hidden fees you need to fear about, which will arise only after you make the money transfer.

Time for funds to get transferred: Most of the transfer services offer different transfer tenures, each for a different price. However, during a financial emergency, you may not have the luxury to consider and opt for any money transfer services that will suit your need. Depending on the urgency to make the transfer, you can choose among the available services. However, with the quickremit service, you can easily get the funds transferred within a minimum of 4 working days. You can even track the transfer in progress.

Accessing funds after money transfer: One of the main concerns about the money transfer is accessing the funds after the transfer. Not many recipients have the means to access the funds deposited, once the transfer has been made. This is normally an issue faced by those who reside in remote places. Quickremit services provide a doorstep delivery service, which means that funds that need to be delivered are done directly to the recipient.

What are the different uses of the personal loan?

No matter how prudent or careful you will be with your finances, life will unexpectedly, throw up a situation where you may need an immense amount of fund urgently. This can range from meeting medical expenses for your loved one, or even renovating your home before the onset of extreme seasonal conditions.

While uncertainty will always be a part and parcel of life, it may not be all that impossible to plan for all unexpected expenses in your life. This is where the personal loan will be more than a handy tool to meet all your expenses.

But how does this loan benefit you? This loan will provide you with a line of credit which can be available on demand. Through this, you will have access to an amount of 15 to 25 lakhs. In return, you need not provide any collateral or a guarantor. In fact you can easily apply for personal loan online and get an instant approval, if your lender finds you worthy of credit.

So what are the different uses of this personal loan? The list is give below:

Manage unexpected health expenditures: If any of your close family members falls sick and needs urgent medical attention, a personal loan will be useful. It is especially useful if the treatment costings is not covered by any health insurance you have applied for. You simply apply for personal loan online and breathe easy.

Plan your dream wedding: Are you planning a wedding for your loved one, or even your own? There is always an additional something you can do, to make this event a more memorable one. By taking on this loan, you can lessen the financial budget, let your dreams come true and have a wedding ceremony of your dreams.

Take that much needed vacation: Your responsibility and your bill payments will make it difficult to save funds, especially for the things that you really want to do. It could include travelling the world, or writing a travellers blog, or even knocking off a location of your travel bucket list. Opt for a personal loan and soon enough, you can take that holiday that you deserve for so long.

Renovate your home: You finally find the time to convert that extra room into a storage room or a study. You may also want to replace the furniture in your living room. You can now make these home renovation expenses with this personal loan and repay back the borrowed funds through convenient EMI’s.

Upgrade your living room TV or PC: You suddenly realized you need to replace the television in your home to an LCD or even upgrade your PC to a laptop. While there is a great sale happening, you can quickly opt for this loan, and make the purchase you require to upgrade your home appliances to the latest model.

All you need to know about secured versus unsecured bank loans

When you need to borrow funds, there are several options you can consider, which also includes the bank loan. But while anybody can borrow these funds, to be a smart borrower, you need to understand the different types of loans. While you may be aware of the different types of bank loans, but are you aware of the different categories of the loan?

Bank loans are classified into the secured loan category or the unsecured loan category. Each of these loan categories possesses different features, which will affect your functionality to use the loan, to repay the loan, and even the assets you currently own in order to get the best of the loan rates. Given below is the difference between the two loan categories:

Secured loan: Under this category, the bank loans are protected either by an asset or collateral. This is normally the asset purchased, with the funds forwarded by the lender. For example, items like the home, car or even one’s business can be used as collateral wherein which a lien is placed on these items. Other assets such as stocks, bonds or even personal property can be provided to secure a loan as well. In this loan, the lender will hold the title or the deeds of the asset, until the complete loan amount has been paid in full. This would also include the interest rate as well as other applicable fees.

Benefits of this category:

• The loans in this category will allow you to obtain a large amount of funding. This is because an assurance is provided, in exchange for the collateral provided. By putting your property on the line, it is a safe guarantee that you will do everything in your power to repay the borrowed funds.

• The loans are not only for new purchases either. The secured loan can also be used as home equity loans, or even a home equity lines of credit. Normally, these loans are based on the amount of your home equity. This is basically the current market value of your property, minus the amount that you still owe. In this case, your property is used as collateral, where failure to make payments, will result in the loss of your home.

• With this loan category, you will have access to lower rates, higher borrowing limits and longer repayment terms. This is due to the fact that you will provide an asset in exchange for the loan, as a form of security. In the occasion that you are unable to repay the loan, the asset placed as security will be sold to raise funds to repay back the borrowed funds.

• The loans in this category include mortgage, home loan, an auto loan for both used and new cars, business loan and gold loan.

Unsecured loan: The other types of loans comes under the unsecured loan. These includes credit card purchases, education loans or even personal loans. In this case, the risk of lending funds is high, as there is no asset to be provided in exchange for the funds borrowed. 

Benefits of the unsecured loan include:

• If you don’t have any assets of high value, you can opt for an unsecured loan to borrow funds.
• You have greater flexibility when it comes to applying for a loan amount as compared to the secured loans.

• Examples of unsecured loans include personal loan, credit cards, and education loans.

Reasons why life insurance is the best way to secure your future

What is a life insurance?

When a person (policyholder) comes into a contract with an entity (insurance providing company), according to which the entity agrees to pay a sum of money in case of an untimely death of the person, the contract is known as ‘Life Insurance’, or Death Benefits. It is also known as death benefits since it proves beneficial in the future. This contract entails certain terms and conditions which have to be adhered to. The major clause in the contract states that the company has to receive a determined amount by the policyholder either as an annual premium paid for a certain period of time or a lump sum paid once and for all.

What to consider?

There are a number of life insurance providers in the market, providing insurance seekers with a vast array of life insurance plans to choose from. Each plan entertains various requirements which differ from client to client. Depending on the insurance cover you opt for, your premium is ascertained along with different benefits of the cover. For instance, certain benefits include - payment of unexpected and expensive medical operations during the insured person’s course and the payment of their funeral expenses.

We tend to realize that death benefits, forms an important branch of the financial planning tree. It allows those who rely on you for their finances to continue themselves in your absence. Besides helping them with their expenses, they receive this amount without any liabilities to it, as such being tax free.

Types of Insurance policies

There are five types of life insurance policies, namely - term deposit, whole life policy, money back policy, endowment policy and Unit linked insurance plans (ULIPs). As we grow older and become responsible for greater subjects, we realize the value of an efficient financial plan. Usually becoming a parent strikes the realization in a human that buying a life insurance policy is quintessential.
In India there are many life insurance providers whom you can easily compare policies and opt for the one that perfectly suits you.

Take for an Instance

The ‘HDFC Life Click2Protect Plus’ plan; it is term deposit which is available for people aged between 18 - 65 years. The term extends from a minimum of 10 years to a maximum of 40. The minimum assured sum is Rs.25, 00, 000 and there is no upper limit. Hence, it provides an extensive coverage at a flexible term (between 10 - 40 years). Similarly, each such plans are designed to:-

1) Protect your family and kin or those relying on you for their expenses,
2) Ensure you leave behind an inheritance, for this proves as an asset to beneficiaries.
3) It helps beneficiaries get rid of outstanding payments.
4) It leaves a sense of fulfillment and gives you a peace of mind.

Why planning your insurance early is essential?

Why financial planning is important?

Planning in advance for anything leaves you with a less margin for error on any errand or responsibility. Similarly, planning your insurance at an early age reaps you more benefits later in your life. We often find ourselves so caught up with our expenses today that most of us procrastinate and leave ‘saving for retirement’ as a responsibility for tomorrow. However, with experience we come to learn the importance of planning things out earlier and the advantages that it bears.

Today’s economic challenges have compelled adults to instill financial knowledge in children from an early age. This equips children to face financial challenges later in life. One important aspect of financial planning involves insurance planning. Insurance plans are important as they cover our retirement expenditure.

Opting for an early insurance

To logically analyze the importance of planning your insurance cover at an early age, let’s consider an example. For instance, a person aged 40 can buy a life insurance policy through which he receives Rs.50, 00,000 as insurance cover on retirement, provided he pays a premium of Rs.50, 000 annually till the time he is 60 years old. However, he can also start paying the premium or buy the plan after 10 years wherein his premium would be Rs.1, 00,000 per annum (from the time he turns 50 till he turns 60). Most of us would be enticed to choose the latter option and buy it at the age of 50. Considering that even he did the same, the person devalued the cash he used to pay the premium. This is because the money collected is accrued with tax-deferred cash which benefits the policyholder by increasing his cash value over time.

Increased cash value puts you in a stronger financial position. As such if you decide to procrastinate and pay later because you’d end up paying the same amount, then you deprive yourself of benefits which you could make use of. One such benefit would include the availability of loans. Each premium payment builds your cash value and over a long period makes you financially stronger. This for example, makes you accessible to private loans, home loans, automobile loans, etc. which you might not be granted if you delay your premium payments.
Today, institutions offer a wide array of insurance policies. Compare and choose the one that best suits your requirements and circumstances.

Why is a travel card an ideal tool for frequent travelers?

What is a travel card?

A type of debit card which allows you to install money in one or more foreign currencies is called a Travel Card. This is because, the common practice is to load foreign currency while travelling. This provides a user friendly and secure method of payment for all purposes when travelling to another country. Widely accepted, it can be used in ATMs to withdraw cash, i.e. - it can be used to pay for accommodation, travel bookings, restaurant meals and other attractions.

Convenience of a travel card

Currency Swings

Over the past decade, most tourist destinations if not all have discerned that tourists prefer using travel cards over cheques and currency notes, which is comparatively unsafe. Besides convenience, a major instrument that convinced travelers to opt for these cards was that one could pre-load foreign currency while favorable rates of exchange are prevalent. This proves beneficial because it allows the cardholder to load money when exchange rates are favorable along with the assurance that its value would remain the same later. Ergo, if you are dependent on currency notes and traveler cheques you might plan your vacation taking into account, the prevailing exchange rates which might suit your budget. However, with these rates being varying in nature they might be unfavorable during the time of excursion. In such a scenario, a travel card proves beneficial while other arrangements of carrying currency would render a decreased value.

Moving towards a digital economy

Leading the global economy towards cashless and digital transactions, a travel money card was introduced to make life easy for frequent travelers. Furthermore, getting a travel card is a hassle free process. You can apply for such a card via mobile applications or on websites and get it delivered to your doorstep. You could visit a forex office and get one on the spot as well. Loading cash on your card is again a simple procedure, as it can be done with the use of internet and mobile or a computer even while traveling. Providing users with the ease of access to load funds earlier (at a favorable exchange rate), along with wide acceptance has made it replace paper currencies as the frontrunner among foreign currency tools.

A handful of Indian entities provide travel cards, though more and more are aiming to penetrate the market. One can compare one with another and then decide on the card that offers the greatest benefits in regards to your expenses.

Why your kids deserve a debit card today

Why give a debit card to a kid?

Your experiences as a child shapes you as an adult. The things you learn and interpret, develop your character and personality. That is why it is important for children to grow up independently although under a parent’s tutelage. This allows them to learn from their mistakes. Similarly, handling their finances, enables them to take better charge of their finances after growing up.

Most kids are encouraged on the habit of saving. Piggy banks came into practice to encourage
Children to save for future requirements or for their desired toys. This practice helped them maintain the equilibrium as an adult.

Responsibility and maturity is attained by children at different ages. With maturity kids learn to be more responsible and after becoming responsible adults they tend to handle their money better. To nurture the children of our society into responsible adults we need to instill lessons that make them respect money. A bank account with a debit card can prove to be a step in the right direction. It allows the child to manage his expenses, under the supervision of his/her parents. This means he/she is given a budget and they can spend it however they feel like until they reach the minimum balance in the account. Also, they will educate themselves on how to earn rewards and discounts from the bank, which initiates ‘good financial learning’.

Features of Children’s Debit card

Today there are a variety of savings bank account and debit card options for minors. With banks coming up with diverse debit card plans parents should analyze the way in which they think the child should use the card and accordingly enroll the minor in one plan. For instance, the ‘Kids Advantage Account’, a plan put forth by HDFC is a popular scheme among Indian parents. The debit card allow a withdrawal limit of Rs.2500. It also includes a shopping limit of Rs.10000 with no overdraft on card value. This means the minimum balance has to be maintained, below which the card cannot be accessed. Similarly, there are several plans like this and as such parents could choose from know from various plans that would help your child learn important financial lessons.

Parents also benefit if they start maintaining an atm card for their kids instead of handing out ‘liquid pocket money’. In this manner you are definitely going to teach your child the basics of personal finance at home such as to plan a budget after receiving income, spend on things that are necessary and affordable and try to save as much as possible.

This definitely does not happen overnight, or as a matter of fact over a week or month(s) also. It is a procedure where you sow the seeds years before it bears you fruits. The child at first, will overspend, not keep the minimum balance required, will be denied access to payments and then learn the value of the procedure. It also allows parents the access to their bank statements, to get an idea of where the money is going.

Monitoring their card activities can be important as the parents would get insights on their children. There are one too many types of debit card and selecting the best for your child should be your priority. It is advisable to opt for the card which allows you to set a minimum limit and no access to spending over that. It might place them in unwanted situations, but that is what shall help them learn valuable lessons.

Make the most of your investment with the RD Calculator

What is a recurring deposit?

Recurring deposit is a type of deposit scheme where you deposit a fixed amount of money on a monthly basis. You earn an interest at a fixed rate on the deposit amount, till the deposit matures. Once the maturity period is over, you will receive the amount at maturity which is a sum of the interest and the deposit amount. One may use an rd calculator to compute the amount beforehand.

A recurring deposit calculator takes the following into account –

1. Tenure
The tenure of a recurring deposit usually differs from bank to bank. The minimum and maximum tenure are 6 and 10 months respectively.
2.  Interest
The interest earned on the recurring deposit account is based on the duration and the contribution amount of the recurring deposit.
3. Maturity period
On reaching the maturity period, you will get the sum of the principal amount and the interest earned.

Features of Recurring deposits:
       1. Collateral for loans
You can use your rd as a collateral for applying for a loan.
       2. TDS
Your recurring deposits are eligible for Tax deducted at source or TDS. 10% is deducted if the interest amount on a recurring deposit exceeds Rs 10,000 per annum.
3. Withdrawals before maturity
A penalty is levied if the recurring deposit account is closed before the maturity period is over.
4. Late payments
In some cases, if you miss a monthly payment then a penalty is levied by the bank.

What is a recurring deposit calculator?

A recurring deposit or rd calculator is a tool which can be used to determine the maturity value of a recurring deposit. In a recurring deposit, each month’s deposit earns interest that is different from the other. This is due to the fact that compounding only occurs at the end of the financial quarter and not at the end of a month.

The interest for a recurring deposit is calculated by using the following formula –

Interest on a recurring deposit is calculated on a quarterly basis. The compounding effect takes place only at the end of each quarter. The formula used to calculate recurring deposit is –

M = R [(1+i) n -1]
M= maturity value
R = the monthly installments
i = rate of interest / 400
n = number of quarters

Thus to pick a scheme that meets your requirements, use the recurring deposit emi calculator to calculate the monthly payments and the maturity value.

How to save for your retirement with a recurring deposit?

A recurring deposit is a type of saving cum deposit scheme offered by banks. Another type of deposit scheme offered by banks is a fixed deposit. A fixed deposit has rigid frameworks where the amount you invest remains locked in for a period of time.

However, you may make withdrawals from the fixed deposit account only against stiff penalties.
An rd account on the other hand offers you the flexibility to deposit money in installments, much unlike a fixed deposit where you deposit the money at one go. You can invest money at periodic times of your choosing, and earn interest on the amount.

Features of a recurring deposit account –

1. The minimum deposit period is 6 months whereas the maximum deposit period is 10 years.
2. The rate of interest offered on a recurring deposit is equal to that of fixed deposits.
3. You may also take a loan from the bank by keeping the deposit as a collateral.

The interest on an rd account is usually calculated on a quarterly basis. The interest rates are compounded, where the interest amount is added to the principal. The new amount (principal + interest) is taken as the new principal on which the successive interest rate gets calculated.

The procedure –

To start a recurring deposit scheme, you will initially have to decide upon the tenure and type of deposit scheme. Once the plan starts, you will have to invest the required amount till the concerned period of time is over. The rate of interest for a recurring deposit varies from 7% to 8%, depending upon the deposit amount and tenure. The risks in a recurring deposit is very low where you can easily calculate the final amount you will receive at the end of the tenure.

You need to choose a bank where you would like to open an RD account. Once the scheme and tenure is decided, you need to make a provision for payment. You can allow the amount to be deducted through the convenience of an ECS (Electronic Clearance System). ECS is a process where the required amount is directly debited from your bank account on a periodic basis.

Advantages of a recurring deposit –

1. The minimum amount required to invest is very low.
2. The rate of interest for a recurring deposit account is higher than that of a savings account.
3. No tax is deducted at source or on the interest earned.
4. It is a low risk instrument.
5. Higher interest amounts owing to quarterly compounding
6. Eligible for loan up to 75% of outstanding amount

How to strategize your two wheeler loan application with the right tools?

Getting a two wheeler loan can be a cumbersome process, especially if you have not strategized it carefully. Strategizing a two wheeler loan means calculating the right loan amount, interest rate and the tenure according to your requirements. You can use a two wheeler loan emi calculator to help you strategize your two wheeler loan application.

A two wheeler loan calculator is the first step in a two wheeler loan application. Before you begin the loan application process, you need to have an estimate about how much the loan is going to cost you. The cost here means the monthly payments that you need to pay to the bank which are known as equated monthly installments or EMI.

The EMI can be calculated from the loan amount, the interest on the amount and the processing fee to be paid.

An EMI calculator uses the following formula to arrive at the result –

E= P * r * (1+r)^n/((1+r)^n-1)
The variable in the formula are –
E = the monthly amount or EMI that needs to be paid
P = the loan amount that you will borrow
r = rate of interest (monthly basis)
n = the time period or duration of the loan amount (monthly basis)

In some cases, the processing fee to be paid for the loan amount is also added in the calculations.

Information provided by the calculator

The two wheeler loan calculator provided information in three parts –

a. The EMI
The equated monthly installments or the EMI is the monthly amount that you need to pay. It included a combination of the principal component and the interest component. Using this information you can come to the conclusion regarding the affordability of a loan.
b. The segregation
The segregation is a breakup of the entire loan amount which needs to be paid back to the financial institution. You will get information on the processing fee, principal amount and the interest amount.
c. Amortization tables
The amortization table can tell about how you will have paid back to the financial institution, year by year, as the loan progresses. These tables also help you comprehend how the interest part of the loan will be repaid.

Thus before you decide to go through, use the two wheeler loan EMI calculator to find out all the required information regarding the loan. It can help you decide whether a particular loan fits your requirements.

Two wheeler loan and their benefits all you need to know

The growth rate of two wheelers in India for the last five years has been in the range of 3% to 8%, according to a report by economic times India. Industry players have predicted that the growth rate will be in the high single digits for the first quarter of 2017. Factors like declining fuel prices and interest rates are driving up demand in this sector.

A rise in demand for two wheelers is linked with the loans for two wheelers. The demand for two wheeler loan is also expected to receive a boost as the demand for two wheelers picks up. A 2 wheeler loan can either stand as an unsecured or secured loan. A secured loan requires you to pledge a collateral and generally has a lower interest rate. Whereas an unsecured loan requires you to make a down payment of 10%-15% of the value compared to a collateral. The rate of interest in case of an unsecured loan is naturally higher.

Where can you get a two wheeler loan?

Two wheeler loans are provided by banks as well non-banking financial companies (NBFCs). The interest rate offered by banks are slightly lower than the NBFCs. You should make an informed choice before taking a loan. The showroom from where you are purchasing the vehicle may also connect you with financial institutions that offer two wheeler loans.

Features of such loans–

1. An identity and residence proof is required before procuring a two wheeler loan.
2. You may be required to furnish your salary slips, bank statements and income tax returns.
3. A documentation charge up to 2% of the loan amount is usually levied.
4. A loan processing charge of 1%-2% of the loan amount is charged.
5. You will be asked to make a down payment of 10%-25% of the vehicle cost.
6. Depending on the loan tenure, the interest rates can vary from 10% to 11%.

The benefits of a two wheeler loan –

1. Two wheeler loans are now available online where the process is easier and quicker.
2. Some companies offer a discount of 0.5% on the interest rate.
3. A large number of non-banking financial companies offer two wheeler loans. In some cases, a low credit score may act as a deterrent for getting a loan from banks where the NBFCs can step as a better option.
4. The loan sanctioning process usually takes less than 2-3 days.

Why do you need to open a Demat Account today?

What is a Demat Account?

Shares and securities in India are electronically held rather than in their physical forms i.e. in terms of certificates and this is where a demat or dematerialized account comes into play. In order to be able to invest in shares or securities, a shareholder needs to have a demat account.

Being a shareholder you need to open a demat account with your investment broker or at times the sub broker. Your account number acts as your unique identification number and is used for all the electronic transactions of shares. Without this number, transaction cannot be initiated.

This account however is similar to that of a regular bank account but with an exclusive purpose i.e. it is used only for trading shares. To gain access to a demat account, a transaction password and an internet password is however needed.

Features of a Demat Account

There are various rewards of having a demat account. These are mentioned below:

1. A Demat account enables electronic storing of shares and securities saving you from the task of manually storing all the certificates and the relevant documents.

2. Once you have a demat account, the bonus shares or the right shares which you may get occasionally get directly transferred to your account thus nullifying the risk of loss due to untoward incidents like fire, damage or theft.

3. Demat account eradicates all the problems you might have faced in the physical transaction of shares or securities like lost in transit, theft, forgery, delay in receiving, signature mismatching, etc.

4. The brokerage or the transaction cost that you need to pay is minimal often below 1% and this also paves you the way to avoid the stamp duty charges which subsequently reduces transaction costs.

5. A Demat account makes the transaction process easier and hassle free with no minimum number of purchase or sale specified. You can also purchase or sell some shares if you want.

6. You can deal with both equity and debt instruments via a single demat account.

7. You can operate your demat account from anywhere inside the country provided you have an internet access.

8. When you change your address with the Depository Participant (DP) who acts as an intermediary between the investor and the institution (depository) that maintains the huge number of shares from numerous companies, your address automatically get updated in all the companies whose shares you have been holding thus eliminating your task of informing them separately.

Why is internet banking the need of the hour?

With the current government policy focusing on promoting a cashless economy, internet banking has naturally picked up pace. A McKinsey report stated that 7% of the total 200 million bank account holders in India transact online, which is around 14 million people.

So what is Internet banking?

Internet banking is an umbrella term which includes all the banking services that are available online. Some of the services that banks offer online include money transfer, scheduled bill payments and viewing account information. You can avail the benefits of internet banking from a smartphone or a computer which is connected to the internet. Mobile banking, which involves availing banking services via a smartphone is also a part of internet banking.

One of the main advantages that internet banking offers is transfer of funds. Transactions through electronic payment systems like Electronic Clearing Service (ECS) credit & debit and National Electronic Fund Transfer (NEFT) have provided a boost to financial arrangements across and around the country in terms of speed of transactions.

Current Scenario

India has seen a spurt in the number of e-commerce websites, where a good amount of transactions are processed online. A cash intensive economy is difficult to monitor as it provides a conducive environment for unscrupulous transactions. The current dispensation has taken major steps in curbing a cash intensive economy and facilitating a move to a more cashless economy instead.

In order to move to a more cashless economy, internet banking is emphasized. Transactions carried by internet banking are easier to monitor. The other two factors are internet propagation in India and a surge of smartphone users.

With more people having access to internet, internet banking in India is the need of the hour. The increase in the number of smartphone users is another factor that has helped internet banking grow.

Some of the benefits proffered by Internet banking

1. Customers are no longer bound by geographical boundaries. One can access their accounts from any place at any time.
2. Internet based banking services take up little time. You can thus spend less time on banking activities.
3. You can schedule online bill payments like electricity, gas and mobile bills.
4. Transfer funds instantaneously with internet banking. You no longer have to go to the bank to send money to another person.
5. Track the activities in your account simply by the click of a mouse.

While the benefits are there, it is not entirely a rosy picture. Internet banking has its share of problems. The major problem being the security of the backend infrastructure. A robust mechanism and a stronger infrastructure is needed to help internet banking grow to its desired standards.

Benefits of purchasing an insurance policy in your early 20’s

Today’s 20 year olds have realized or fortunately have been made to realize the importance of saving and investing. Life insurance, is an important investment and statistics prove that many mid to late 20 year olds have shown interest in purchasing it. To prepare ourselves for life’s “what if” moments, the knowledge of financial tools is essential and life insurance is one of the most important such.

Additionally starting an insurance cover in your early twenties will eventually pay off in the future. Some benefits include:-Lower premium - when you start an insurance policy you are expected to cover an amount which you pay off, usually by means of an annual premium. This amount paid annually as a premium will be significantly lower, the earlier you start an insurance cover.

Example
For instance, a person aged 24 will have a premium of Rs.7,000 and that particular plan will make a person aged 30 pay Rs. 9,000 as premium for an insurance cover of INR 1 crore.

Why so early?

Support - many 20 year olds have to support their family or a few of their folks along with themselves. In those scenarios, investing money in an insurance plan would prove beneficial in the long run and very helpful in unfortunate circumstances. It will provide those who rely on you with money after and if you are not there. A number of insurance policies offer lower premiums on beginning annually renewable policies. The premium rates do go higher every year but they also include invaluable benefits.

Stronger cash-value - regular payments of premium increases your cash value. This places you in a stronger financial position and enables you to access personal and other loans with flexible terms and conditions.

Exploration and Analysis - if you invest in purchasing an insurance plan during your 20s then you are bound to learn a great deal on the subject. As you keep getting older and observe lifestyle changes, you start evaluating the different types of insurance policies and based on your past purchasing experiences as well as your current lifestyle you could ideally settle for the one that proves to be the most beneficial.
Buying an insurance policy sooner than you plan to will reap you benefits sooner than you expect. Being a policyholder from an early age would coerce you to spend less and earn more, thereby getting into the habit of saving. In today’s world anyone can access information easily and this minimizes the risks of those purchasing insurance policies without prior knowledge.

Car loan vs. personal loan: Which is the ideal solution to purchase your dream car?

Need a loan to purchase your dream car? If yes, then you can either opt for a car loan or a personal loan. These are the two most common loans available in the market today. The entire process of obtaining a loan is very easy once you meet the requirements of the lender.

Now that you can opt for a personal loan as well as a car loan for purchasing a car. It is important to differentiate between the two, and then make an informed decision.

Personal loan

A personal loan allows you to borrow funds from an institution for various purposes. A personal loan is an unsecured loan which means it has high interest rates. Unlike a car loan in India, a personal loan is not restricted to motor vehicles. You can also use a personal loan for renovating your home, debt consolidation or taking a holiday.

Car loan

A car loan, as the name suggests, can only be availed to purchase a car. A car loan is secured, where the vehicle serves as the collateral. When you apply for a car loan, you should do a thorough research of all the interest rates and pick the best rate as per your requirement.

Which is better?

A car loan outscores a personal loan on a number of factors. From the perspective of interest rates, a car loan being secured, has a lower interest rate. Your credit score is important when you apply for a personal loan, so a bad credit score may act as a deterrent. Personal loans also carry high processing charges.

The credit score and higher interest rates are factors that tilt the scales in favor of the car loan. The car loan is also easier to obtain, as the dealer whom you purchase your car from can set you up. They usually have tie ups with banks or other NBFCs who offer car loans. A car loan may also require you to pay an upfront amount as down payment for the loan. A personal may also have variable interest rates as it is an unsecured loan.

Irrespective of what you pick, it is important that you carry out a thorough research and make an informed decision with respect to which loan would be more suitable.

Why a personal loan EMI calculator is essential for a strategic loan application

Personal loans are a great resource for small expenses that need to be handled in a rush. Personal loans of small amounts such as a few thousand rupees are often available from banks at interest rates as low as 2-6% per annum and can be taken out against small fixed or recurring deposits.

More conventional personal loans of Rs.50, 000 and above are available at 10-12% per annum interest rates. Most people can be eligible to apply for a personal loan as long as they are salaried employees of government or other reputed establishments or can show proof of income.

When you decide a loan scheme, your EMI is determined by several factors such as your interest rate, your loan amount, etc. It is crucial to know your EMI options beforehand and choose a payment plan that is suitable to your needs. If you end up with a payment plan that takes too large of a chunk out of your monthly income, it might disconcert the point of taking out a loan. Which is why, before you take out a loan, you should use an EMI calculator for personal loans to figure out your possible monthly payment plan.

Purpose of an EMI calculator

When you’re planning on taking out any sort of loan, you should have a rough idea of how you are going to be paying it back and how long of a commitment you are willing to undertake in terms of a payment plan. A personal loan calculator will help you ascertain these specifics and let you plan ahead accordingly. It will let you calculate the EMI on different loan schemes that you are considering as well as different loan amounts that you might need to consider, giving you a well-rounded idea about the situation.

A personal loan EMI calculator can make your job much easier by taking into account various factors instead of letting yourself account for them. Often while taking out a loan, people do not take into consideration, factors such as the time before they have to start paying back the loan and the interest it accumulates. This can lead to people getting frustrated over a longer span of EMI payments.
Strategizing beforehand using an EMI calculator can eliminate such hassles and let you take out your personal loans without worry.

Why the best time to opt for a personal loan is now!

Demonetization and Personal loan

The demonetization of the Rs.500 and Rs.1000 currency notes witnessed uproar in the country. Citizens of the whole nation deposited their cash in banks. There were many banks that slashed the deposit rates, which bought down the lending rates as well. At present, prevailing interest rate is at a six year low. With such low rate of interests, your monthly EMI will also tend to come down. As such, this is the perfect time to opt for a personal loan if you need one.

Benefits of a personal loan

There are several advantages of taking a personal loan now:

I) The interest rate being the lowest since the last six years.

II) You will be able to get loans with less than 12% interest rates.

III) There is little documentation required for acquiring a personal loan.

IV) It takes very little time to apply and as such you receive your loan within 72 hours.

V) It is possible for you to avail the additional tax benefits on the personal loan.

VI) The repayment options are flexible, allowing you to repay the loan as per your convenience.

Applying for a personal loan

1) Firstly, you need to check the interest rates that are available. You can look them up online to compare and get the most suited deal for you. At the same time, you can also look up the additional fees and charges that are levied.

2) You have to decide on the loan requirements and select the amount. You can select the amount up to 25 lakhs. You have to repay it in a span of 12 to 60 months.

3) Once you provide your financial details to the bank or NBFC, you will receive a customized offer. If you want, you can ask for a loan offer that is pre-approved.

4) A CIBIL score will measure your ability of repaying the loan. If you score well, there is a possibility that you will get a good deal.

5) You can either apply for the personal loan online or at the bank branch. You only need to submit all the necessary documents and pay a small processing fee. You need to submit your identity proof, address proof, your latest salary slip and form 16 (Income Tax). The amount will reach your account within 72 hours.

It would be wise to take advantage of the current prevailing market scenario and apply for the personal loan. The easy application process is sure to remove your doubts and fears of debt, allowing you to reach your financial goals.

All you need to know about the FCNR account and loan benefits

What is an FCNR account?

An FCNR (Foreign currency Non- Resident account) is a type of deposit account which can be used by NRIs and PIOs. As the name suggests, you can only deposit foreign currency in this type of account. Only certain foreign currencies are eligible for deposit in the FCNR accounts. The currencies that are allowed are the –
1. US dollar
2. Euro
3. British pound
4. Australian dollar
5. Canadian dollar
6. Japanese Yen

The FCNR account eliminates the risk of fluctuations in currency conversion, and earn a fixed rate of interest.

Features of a FCNR account

1. FCNR accounts can be only opened by NRIs and PIOs.
2. A regular interest amount is paid on the deposit.
3. You can only deposit foreign currency in the account.
4. The deposit should have a maturity period between 1 - 5 years.
5. It offers nomination facilities.
6. You can convert your deposits into a different currency against an implied cost.
7. This scheme does not permit recurring deposits schemes.
8. You can avail loan facility against an FCNR account.
9. The interest earned on this account is not taxable in India.

Requirements for opening a FCNR account are

1. A copy of Visa
2. A copy of passport
3. An updated bank statement of the foreign country
In case of a premature withdrawal from a FCNR account, a penalty charge of 1% is levied on the account.

FCNR loan

A FCNR loan is usually issued to corporates as per the guidelines issued by RBI. Corporates sometimes prefer FCNR loans as they have lower interest costs. This also does not require the borrower to go to international market for raising funds.

Advantages of FCNR loan –

1. FCNR loans come with very low interest rates.
2. You can use it to hedge currency exposure risk.
3. FCNR loans are easy to obtain.

Eligibility for an FCNR loan

These loans are generally only provided to well-established businesses that operate as a limited or a private limited company. The company should have a good track record of loan payment i.e. a good credit score. This loan can be availed for purposes like purchase of capital equipment or working capital requirement. Most banks usually have a minimum loan requirement amount of USD 100,000 for a loan application.

Are you aware of these features of the current account after demonetization?

What is a current bank account?

A current bank account is that type of an account in which a bank states no limit on the number of transactions per day. Most banks do not provide an interest on your balance in this account, in fact some charge a certain fee for the services. Account holders do not use this account for investment purposes. Usually such an account benefits a businessmen as it is a flexible account providing no transaction limits thereby assisting the business with supply of liquid cash. It might be a prerequisite in certain banks to hold a minimum quarterly balance which can range between Rs5000 - Rs10, 000.

Demonetization and Current Account scheme

However, adhering to all the norms specified by the bank and providing them with the prescribed documents is all you need to become a current bank account holder in India. On November 8th the Modi government announced the demonetization of Rs.500 and Rs.1000 notes. In an attempt to curb black money off the economy Indians were dumbstruck by this move as the news was not leaked by anyone to the public before the date. The people were coerced into following new rules which were temporary withdrawal and deposit limits. However, burden on businessmen were reduced as the withdrawal and depositing limit was considerably moderated for all current bank accounts. While there was a sudden cash crunch and people throughout the country felt short of currency notes, the government tried to promote the concept of a digital economy.

Within a week of post-demonetization, the government in an attempt to help the businessmen in the country raised the withdrawal limit to Rs.50, 000 a week. However, it remained Rs.10, 000 a week for savings bank account holders, which was later increased to Rs.13, 500. Between the 10th of November and the 31st of December all cash deposits in a current account of up to Rs.2, 50,000 were not the subject of any questioning from the Indian Income Tax Department, however, any amount above that was. Shaktikanta Das, the secretary of economic affairs, informed the press that the RBI had enough cash and a plan to distribute the notes throughout the country within 3 months. The government would make use of this period to detect unusual activity and at the same time try to help the public, either by easing the cash rules (spending old notes and increasing withdrawal and depositing limits) or by improving flexibility and scope of digital transactions.

How can you benefit from high interest rate savings account?

Why do you need to dishoard liquid cash?

We all must know the dangers of keeping money idle. It may evaporate quickly owing to surging inflation or on days when you feel spendthrift. You can instead invest the idle money in a bank account where you would earn interest on it. Banks offer you various investing schemes like a savings account, a fixed deposit and a recurring deposit to keep your money.
Features of a savings account

A savings account is generally opened by people who have a fixed income. The aim of this scheme is to inculcate a habit of saving money. Some banks even allow you to open a savings account with a minimal deposit of Rs100 with current savings interest rates in India varying from 4% to 6%.

A savings account can be divided into a regular savings account and a high interest savings account. A high interest rate savings account is a variation of the regular savings account that banks offer. Quite naturally, a high interest account earns a higher rate of interest than a regular savings account, in return of which the bank may ask you for a large minimum opening deposit. You may also be charged if your balance falls below the threshold amount required by the bank. The account may also be subject to other conditions depending upon the bank.

The recent launch of differentiated banks in India, has seen interest rates on saving accounts experience aggressive pricing. The newly formed payment banks that only offer savings account schemes offer high interest rates in the range of 6% - 7%.
Currently, the fixed deposit rates are seeing a decline, thus making high interest rate savings schemes more attractive.

Advantages of having a savings account

1. Encourages a habit of saving - For people earning fixed salaries, it encourages a habit of saving money.

2. Earning interest- You earn interest on the amount you have deposited.

3. Making payments - You can make payments or transfer money from your savings account via cheques or online banking.

4. Liquidity- Unlike fixed deposits, savings account schemes ensures that you can access your funds whenever you need.

5. Proof of identity - The savings account passbook gives you a proof of identity.

6. Low risk instrument- Savings account are very low risk instruments, where you do not have to worry about losing your money.

What are the best ways to make an international money transfer?

Understanding international money transfers

The demand for international money transfer services seems to have been on the rise in the recent past. The absence of a universal currency is the reason why sending money across countries is so necessary. Fortunately, there are many financial entities providing such services. Previously, there were many costs associated with this service. Agencies and banks deducted hefty amounts by deceiving customers under the label of “hidden costs”. The frustration of many clients led to the arrival of new institutions providing such services. Consequently, the existing service providers had to improve their services because the new ones were established to curb the inefficiencies of the old.

Means of undertaking international money transfers

Today you have numerous options of transferring your money outside your country. Not only established banks but also can you resort to other means as well. These include:

Agencies assisting money transfer - Bodies such as Western Union, have been in this market for a while. Their services can be relied upon as almost each country in the world has opened its doors to their services. You can transfer the money from an international bank account, where the recipient can encash it without any hassle. The only thing you need to keep in mind is considering the fee they charge and their currency conversion rate. Most of these agencies provide a diurnal rate to clients which have to be adhered to and the transfer happens over the course of a week or maximum two. Limits to such an affair depends on the kind of service you opt for and the country you are sending the money to. Agencies such as Fedex have also been a part of this picture for a while. They usually deliver faster than Western Union. India Post has also started the service in recent times.

Wire Transfer - the conventional method of transferring funds globally. Allot the amount to be transferred and mention the recipient's account details. The bank charges a fee for this service and transfers the funds within a few days, varying from country to country, amount being transferred and the banks involved. The surcharges and hidden costs via this method is what frustrated people and called for new means to transfer money. However, banks have made it convenient by making this procedure more transparent, providing customers with maximum value of their money and other secure features like tracking the funds.

Digital wallets - owning a digital wallet is the new trend in money transferring. It is as easy as having an account on a mobile application and linking it with your bank account or any other entity that provides you with monetary balance. You can use your balance and transfer funds to another person’s digital wallet. There are many digital wallet service providers and they have definitely eased the concept of transferring money, since users can now afford to split restaurant bills to sharing cabs by conveniently transferring money online.

As world economies move towards a digital age, online money transfer is the very basic intricacy that needs to be addressed efficiently. Evaluating the improvement in the service over the past decade or so can lead to the conclusion that we are progressing towards achieving efficient and transparent means of transferring money. This would allow us to make use of the value of money we own and avoid hefty payments to avail such services, which in today’s world is a requirement for most.

Quick remit: The ideal solution for quick money transfers today

What does HDFC offer in this regard?

HDFC, the 2nd largest Indian bank in the private sector has experience of more than 20 years in offering financial services in and out India. HDFC offers its valuable services to the NRIs for money transfer through 3 different ways especially from USA to India. The most popular method of money transfer being referred to are QuickRemit while the other options of transferring money includes Demand Drafts, Telegraphic transfers and traveler’s cheque.

What is QuickRemit?

QuickRemit, one of the popular options offered by HDFC allows you send money, electronically from US, Singapore, UK or the Euro Zone to India. However before you start you need to follow few simple steps in order to transfer money successfully. First you need to register online in the QuickRemit site by providing the basic details. Only US customers are needed to provide their bank details. After you set up an account it will be then verified by the bank. Once the verification process is successfully over then you can proceed to transfer the money. However, this entire process of verification may take around 3-4 days.

Benefits of QuickRemit
QuickRemit is somewhat time consuming and thus falls slightly short when compared with the modern technology based services like Transfast, Xoom, etc. However this process offers several benefits too which are:

1. The process as such being provided by HDFC is trustworthy, convenient, cheap, transparent and values the security of its clients.

2. It is safe as it maintains the privacy of your personal information and transaction takes place after you authorize it personally.

3. QuickRemit allows the transfer of money for basically all kind of payments.

4. QuickRemit allows both; it offers credit directly to the recipient’s HDFC Bank Accounts and also to other bank accounts that the recipient may have. QuickRemit allows you to transfer money to more than 90 banks all over India by using the NEFT / RTGS Platform provided by the Reserve Bank of India. However the Bank does not assure the time delivery procedure while crediting money to other accounts.

5. QuickRemit offers admirable exchange rates.

6. The transactions can be duly tracked online.

7. You also have the opportunity to transfer money within a short period of time against a slight surcharge.

Health Insurance: Useful tips that will help make your purchase decision

What and Whys of Health Insurance

A recurring premium paid by an individual or a family to safeguard their future medical expenses is known as health insurance. This is an agreed contract between the insurance providing entity and the individual. It is an easy and systematic way to ensure that you would not have to suffer when the time comes for an urgent or expensive medical treatment. It is also renewable and transparent; hence consumer friendly.

Choosing the right provider

Acquisition of Health Insurance is a simple procedure with diverse options. Each option is considered as a plan. To begin with, you register on Health Insurance India - a marketplace and then proceed to enroll your family or yourselves in a plan.

Health Insurance is offered by many companies. Choosing the most appropriate plan depends on your requirements and budget which can indeed turn out to be an elaborate process. However, you should always note a few key points to consider before we invest in any one of these plans. A few points are:-

1) Identifying the category the plan falls under – types of health Insurance plans are mainly divided into four categories - Platinum, Gold, Silver and Bronze. Each category reveals the relationship between the costs you incur and the care the particular plan provides. Nevertheless, plan categories have no connection with the ‘quality’ of care provided.

2) Comparison of costs to Utility of Plan - under any insurance plan (in Healthcare) the consumer is required to pay a monthly premium, which is a fixed monthly sum of money. Whether or not the consumer uses the money every month for medical care is irrelevant. Hence, a consumer should have an explicit idea of where his/her money is going and how useful it would be for him/her.

We never know when we have to encounter an expensive medical emergency. Health Insurance
helps us live tension free when it comes to dealing with this problem.

Benefits of a Health Insurance

A Health Insurance provides the following benefits:

It makes Healthcare affordable - in a medical crisis many patients are not able to meet the financial requirements of the operation/surgery. Health Insurance covers some or most of your medical expenses, reducing the burden on your pocket at a particular time.

Ensures Preventive Care - we hardly ever want to visit the doctor. Now and then, when we experience some small abnormalities we try to tackle it ourselves. However, if we pay premiums and enroll ourselves in a health insurance plan, we are more likely to utilize this opportunity by visiting the doctor for frequent health check-ups, thereby ensuring Preventive Healthcare against diseases.

How to prepare your business loan application for a guaranteed approval?

To have a successful business and gradually watch it grow, it is important to invest in it properly. The equipment, infrastructure, properties and advertisements require a certain amount of expenditure. Initially, managing these costs can be difficult, and this is when a business loan can be of great help. When you are applying for your business loan in India or elsewhere, it is natural to be apprehensive about it.

What you need to consider before?

The idea of displaying your business plan to a lender and the possibility of rejection may intimidate you. There are certain things that you need to keep in mind before putting in an application for a business loan. They are:

1) Before taking the plunge, it is important to know where you are going. You must have a fair understanding of the different kinds of loans that are available, as well as the terms and conditions that come along with it. This process will be time consuming, but it is definitely an important step.

2) The next crucial decision that you need to make is whether you want to apply for the business loan in a bank or would you prefer it online. Both the ways have their own advantage. If you are applying in a bank where you already know the people, it makes it easier for you to communicate. Moreover, it will be cheaper than going for an online loan. However, if you choose an online loan, the application process will be easier. At the same time, you can connect with many lenders with a single application.

3) Be sure that you find the best lender for your business loans. You must carefully go through the lending guidelines and see if your application fits with them.

4) Keep your strategy ready if the lender is keen to know how they will be repaid. It may be by the repayment on the basis of the principal and the interest method, or by selling a certain portion of your business assets.

5) Before the final application, it is advisable to review it completely and clear all your doubts, if any. By this process, you will avoid making mistakes. You must be completely accurate and truthful with the information that you provide. Your supporting documents should be ready to match the information that you have stated.

6) In case your lender has a query regarding your plan, make sure that you answer them without taking too much of time. If you require more time, it is always better to inform them about it.

What are the steps to convert your resident savings account into an NRO account?

If you are shifting base to another country, it is necessary for you to close your current savings account in India, or get it converted to an NRO account. A NRO (Non-Resident Ordinary) account allows you to deposit your earnings that you earn from India, like interest, dividends, rent, etc. Funds collected from abroad which come in fully convertible currencies may be deposited in an NRO account. You are also entitled to issue cheques for making local payments, EMI payoffs and investments through your NRO account.
Following the steps

You can easily convert your existing resident savings account into an NRO account by the following steps:

i) Filling up the form: There are specific forms prescribed by the banks for converting savings accounts to an NRO account. You can either collect the form from your bank or download it from your bank website. Remember that it is necessary for every account holder to sign in the form. You can use a single form for converting all your savings accounts that you have with your bank.

ii) Providing documents: Along with the form mentioned above, you need to fill and submit a form for opening a new account too. The proof of address of your overseas address, copies of your passport, work permit and valid visa requires submission. A copy of your OCI (Overseas Citizen of India) or PIO (Persons of Indian Origin) card, if applicable, needs to be submitted.

iii) Adequate balance in account: If your account that you wish to convert to an NRO account has zero or very low balance, you have to fund it with the required minimum balance.

iv) Submit to the bank: Once you have filled up the forms and prepared the necessary documents that are required, you have to submit it to that bank branch where you have the account. If you are already in some other country, the Indian Embassy needs to attest your forms and documents and then you can send it to your bank.

Once your form and the documents are received, examined and verified by the bank, your resident savings account will be re-designated as your NRO accounts. The bank may charge you an amount to carry out this process of conversion. You may easily repatriate the interest that you earn on NRO accounts, once the taxes have been deducted

Different ways you can transfer funds to your NRE account

What is an NRE account?

An NRE account is a kind of NRI account which stands for - Non Resident External Rupee Account. It is a savings or a current account held by a Non Resident Indian or an Indian Overseas Citizen, in an Indian bank. It conveniently allows the holder to deposit their foreign earnings in an Indian bank for investments in India, with no restrictions on transferring the money back to their foreign account. Moreover, money deposited in foreign currency is always converted to Indian currency while it exists in the NRE Account.

Methods of Transfers

There are several ways you can choose to deposit money into your NRE accounts. Some commonly followed methods include:-

1) Wire transfer - transfer of funds from your overseas bank account to your Indian bank account. All you have to do is fill in an application form requesting a transfer of money and your beneficiary account will be credited in 24 hours.
2) Transfer agencies - Western Union Money transfer and other such agencies assist you with your requirements to transfer money to another entity or account. However, these may charge particular service costs.
3) Remittance – Some bank have established a secure application to transfer your funds. You need to register on the mobile application and follow the guidelines for the transfer. It provides perpetual servicing along with tracking information to keep a check on your funds. Similarly, HDFC bank has come up with remit2India, while Kotak has click2remit whereas SBI has SBI Express.
4) Direct Deposit - you can directly deposit funds to your account by visiting the bank or sending it via somebody. It can be deposited in foreign currency which can be converted to Indian currency.
5) Traveler’s cheque - During your travels in India you can deposit a traveler’s cheque and administer the additional funds in your NRE account.

While secure and efficient methods are prevalent, transfer and allocation of funds can come across certain unfortunate hurdles. Scams are a common issue that have victimized many NRIs. The benefits that these kinds of NRI bank accounts have in store are generally helpful for non-resident Indians. Adhering to guidelines established by our banks providing these accounts, is essential for all account holders. Negligence and carelessness can end up costing you a lot, whereas simply keeping a check can reap you lasting benefits.

Are you aware of the different types of NRI account?

What is an NRI account?

If you didn’t know, a non-resident Indian (NRI) may also run a bank account (savings/fixed deposit and/or current) in India. Such accounts are operated by a person of Indian Origin or an Indian citizen residing overseas. However, this access is restricted to NRIs and not foreign internationals. To establish and maintain an NRI bank account, households need not seek the permission from the Reserve Bank of India, they can simply come in contact with a bank holding the license to deal in foreign currency. There are now various types of NRI accounts in India, which provides users with a variety of options to choose from, with each type characterized uniquely.

The Types of NRI Account

Among the various types of NRI accounts prevalent in the country, the most common types include:-

1) NRO Account - a Non Resident Ordinary Rupee (NRO) Account, is a current or savings account in an Indian bank. This helps the NRI manage their earnings in India, including dividends, rent and pension from other countries. This account is operated just like another Indian resident’s account. The funds are reserved in Indian Currency and can only be repatriated by permission from the RBI. Interest on balances is accumulated, however it is subject to tax. This account is ideal for an NRI earning in India, constantly requiring to withdraw or deposit in the account with no intention of repatriation.

2) NRE Account - a Non Resident External Rupee (NRE) Account refers to the type of NRI account India which girdles to help in the assistance of depositing funds, to a financial entity in India. There is an agreement upon the conversion and/or transfer of these funds to Rupees from Foreign currency or vice-versa, in and outside India. Ergo, repatriation is feasible through this account, though the reserve is kept in Rupees. The account holder’s earnings on investments in any part of the world, can be credited to this account and the interest accrued is tax free. This account is ideal for an NRI who frequently has to send money to or from India.

3) FCNR Account - a Foreign Currency Non Resident (FCNR) Account is that type of an NRI account which enables the NRI to save their overseas deposits in an Indian bank as term deposits for up to a maximum period of 5 years. This is more like a fixed deposit of sorts, rather than a savings account and withdrawal before the time period, results in the payment of a penalty. The reserves are maintained in foreign currency and any interest or payment receipts earned are maintained in the same currency as well. However, it can also be made available in Indian Currency with existing exchange rates. The taxation policy remains the same as an NRE Account.

4) NRI Trading Accounts - a non-resident Indian trading account makes it a possible prospect to invest in the Indian trade market through depositing funds in this account. There are several sub-categories under this type of an account, namely - NRO Demat Account, NRE Demat Account, and Foreign National Demat Account.

A few Indian Banks providing such facilities to NRIs include - SBI, HDFC, ICICI, Central Bank of India, etc.

How can an education loan assist you further your education?

What is an education loan?

An education loan is a type of loan that is taken by students to pursue higher studies in an institution of their choice. Most students take education loans to undertake higher or professional education either in India or abroad. The loan is usually provide to students who have secured admission in a particular institute.

Eligibility for an educational loan –

1. Students of ages 16-35 years are eligible for these loans. The students should be pursuing graduate, post graduate or PhD programs.
2. In case the loan amount exceeds Rs 7.5 lakh, you will be required to submit a collateral security.
3. Admission certificates to courses in recognized college or universities.

What does an education loan cover?

An education loan generally covers the tuition fees, accommodation charges and exam charges. In case of a foreign institution, the travelling charges can also be included in the loan amount.

Advantages of taking an education loan –

1. Study loans are easily available
Education loans are easily available. Most private and nationalized banks offer a wide range of educational loans designed to cater to a large customer base. The procession time for the loan papers range from 15-30 days.

2. Easy access to quality education
Lack of funds can be a big deterrent if you want to pursue higher education. In today’s world, the world of education has undergone a sea change, courses have now become more specialized. With increasing specialization and improved infrastructure, education has become more expensive. An education loan thus can help an aspiring student to pursue their dreams.

3. Repayment moratorium
An education loan allows you to start paying back the loan amount only a year after you have completed the course or after six months if you get a job, whichever is earlier. The moratorium period gives you a much needed relief from having to start paying the loan immediately after you complete the course. However, you can get an interest concession of 1% if interest is paid during the moratorium period.

4. Low interest rates
Education loans usually have very low interest rates when compared to a personal loan. If a student has a good track record and is seeking out a premium institute then a lower interest rate can be negotiated. For amounts below Rs 4 lakh, there is no collateral required. The interest component of an education loan is eligible for tax benefits till the time you pay off the loan or eight years, whichever is earlier.