What is the key difference between mobile banking and internet banking

Internet banking, also known as online banking, is part of the many e – banking channels. This channel has gone on to create a change in banking operations, providing virtual banking facilities to its customers all year and day long. Through this channel, customers can now access their bank account through the online portal.

In addition to internet banking, mobile banking is another channel that allows customers to access their bank account. However, in this case, customers can specifically operate their bank accounts through specific devices, with the help of customized websites or mobile applications.

The service provided by both these facilities may resembles a lot. However, there are instances when people assume they are one and the same facility. This often leads to confusion in terms of the facilities offered and the benefits you can gain through each channel.

The difference between mobile and internet banking can be drawn clearly on the following grounds:

• With internet banking, the banking transactions can be carried out over the net. This can be done via respective bank or financial institution’s website under a personal profile. It can also be done through any device that supports an internet connection. On the other hand, mobile banking is a service that enables customers to perform banking transactions using a cellular or tablet device.

• Internet banking will need an independent connection along with a device like a computer and laptop. With mobile banking, very often the mobile network provides the relevant network connection, through telecommunication devices such as the mobile or tablet. In each case, the network communication will have different features and function differently. It will also have different speeds, security and protocols.

• Mobile banking normally utilised ‘apps’, that are custom made for specific purposes and more precise in terms of functionality and access. On the other hand, internet banking offers the usage of bank’s website to access the bank’s functionality. 

• Through mobile baking, you can transfer funds with the help of IMPS (Immediate Payment Service), NEFT (National Electronics Funds Transfer System) or RTGS (Real Time Gross Settlement). With internet banking, you can transfer funds from a bank or a branch to another, with the help of NEFT (National Electronics Funds Transfer System) or RTGS (Real Time Gross Settlement).

• The number of functions performed by mobile banking, is often limited. While it does offer a custom like service, it is often restrictive, especially with limited services. On the other hand, internet banking offers the perfect pathway for a wide array of services to their customers.

Banking apps versus Browsers: Which is the best option?

While the smartphone trend and app usage is still taking root, several individuals are still opting for the old fashioned web browser to satisfy their requirements. After all, there are several benefits that the website offers that the app may not, and vice versa.

This is no different for the banking institutions that have offered their services through the website and mobile apps. Options such as the SBI, Axis and HDFC Bank are some of the various banking institutes that have offered their services on the website as well as their apps.

Given below are pros of each of these options and how they can benefit you:

Mobile website: The mobile website is designed in such a manner that is not a separate website like the mobile apps. In fact it is designed in such a manner for all screen sizes. Visitors will be able to access most of the content on the full website, which is often optimised for smaller screens. Given below are the pros of the mobile website:

• Functions on all phones: If you need to access any of the SBI, Axis and HDFC Bank websites, you only need to access your browser and visit the website of your choice. This is often a challenge for apps as the programming needs to support the OS of the phone, which requires considerable difference between an Android platform and iOS platform.

• Save on space: One thing about accessing the website through the browser is the space you will save on your phone. You need not download a platform, such as the app, to access the services on your phone. This will help avoid downloading a platform, which will constantly take up space on your phone.

Mobile apps: Mobile apps are separate program features that required to be installed on your phone. They are custom built perform a specific function, or in the case of banks, offer specific functions and services. Given below are some of the pros of the app:
• Push notification: You can easily get text messages if you subscribe for the push notification service. Axis and HDFC Bank net banking push notification service are some of the notable ones.
• Offline access: You can easily read about offers, browse the available product services when you are offline.
• Faster performance: As compared to the website, you can get a faster service.
• Less cluttered: Depending on the website design, apps can be very interactive and informative.

As you can see, the mobile banking app has a lot more to offer, that a website would offer. You would stay updated with the current trends that will allow you to take advantage of financial deals or make calculated decisions. You would also get a user experience which is clutter free and faster, as compared to the website browser.

What should you look for in banking apps?

With the combination of technological progression and the need for convenience, comes the introduction of banking apps. These mobile banking apps, combine the traditional methods of banking with smartphone technology known as app.

This leaves you with the means to make any banking transaction, right at your fingertips. No longer will you be required to visit the bank to check your account, or even make a transfer. Now you only need to log into your bank app account, and make the necessary transaction you would want to do.

But before you can utilise any of the functions of the bank apps, you will first need to install the appropriate app. Plenty of banks have their own versions of the mobile banking apps which combine their own offers, along with their USPs. This leaves you with a wide choice of mobile banking apps for android and the iOS.

So how do you select the one that is most appropriate to you? Here are some features you can consider:

• Simplicity: Financial processes are often complicated. App provides the perfect opportunity to simplify it. They will need to be presented in a straightforward fashion, that is not only easy to complete but logical. This is especially crucial for common tasks which are repeated on a daily basis, such as depositing funds. By breaking down the process into a step by step interaction, along with visual assistance and a transparent call to action, will ensure the user is comfortable through a multistep system.

• Streamlined: A centralised ‘wallet system’ goes a long way to support your financial file and all the transactional habits. Imagine an app that will offer you a wide range of products in an integrated and streamlined process. This automatically eliminates a disjointed experience that doesn’t connect with the different parts of your financial life.

• Transparent: When it comes to finance, you would want to know all the details. Whether it is interest rates, bill payments or even mobile deposits, or even terms and conditions, it must be easy to find. It should also be well branded and clearly indicated. Lack of these this feature will lead to distrust over time and thus causing you to restrain from using the app for any of your banking transactions.

• Security: In today’s world, every individual is a ‘mobile first’ user. Through this app, you are more likely to apply for a credit card, or any other product on the mobile phone. Through this process, the user, such as you must feel secure, thus imparting trust. Plenty of banking apps have offered security tactics, such as enabling touch ID, or biometric scanning. In other words, just like the brick and mortar bank offers security through its massive building and watchful security guards, so should your banks digital presence impart the same level of security.

What are the safety features that banking apps offer?

The day and age has come where financial transactions have now been executed, literally on the go. Thanks to mobile banking apps you can now effectively manage your funds, check your balance, make a transfer and even pay bills online.

However, only about two – thirds of banks customers, who own a smartphone, actually utilise and enjoy the benefits of mobile banking. The main reason behind this number, is that not many of these individuals are unaware of the safety features offered by these mobile banking apps. In fact, these apps have been designed in such a manner, where it offers more safety benefits as compared to the traditional form of banking.

They include:

Multi factor authentication: The submission of a single password, in order to grant access to your customer’s bank account, is no longer used as a defence system, as it can be easily beaten. Banking apps are now coming with multi factor authentication features, which add additional layers of defence. In fact, it integrates well with the safety features of the phones, to offer optimum security. Features such as fingerprint scanning or facial recognition unlocking will help you restrict the access on your phone and apps. With each added security, it makes it difficult for hackers or cyber criminals to access your banking details through the app.

Offer real-time text and email alerts: One of the main causes of fraud in any form of banking transactions, is the obliviousness. When a fraudulent transaction takes place, the bank account owner, may be unaware of it, and thus take the measure to block or trace the access point. By setting up alerts through real time texts and emails, customers, such as yourself, can stay updated constantly on the activity in the bank account. You can even set up the alerts for custom work, such as getting to know if a specific amount of funds is being withdrawn from your account. Such alerts will help you know if your account has been compromised, and you can immediately contact the bank to track and stop the transaction.

Utilize behaviour analysis: Most of the banking apps are now integrated with software security features that will monitor and analyse your login location and account activity of the customers. By doing so, the banking app will flag down abnormal behaviour, which will either alert you, or monitor for further investigation. This will take you one step ahead when it comes to protecting your banking details or even your bank account even before any irreversible fraudulent activity can occur.

While these are the current features, these banks apps are continuously being upgraded to ensure that your banking data is well secured against any evolving threat.

How to use online banking app safely

Online banking has become a popular option, due to the very fact that it makes financial management easy. Plenty of high end banks are now offering online facilities that will allow you to check your balance, set up direct debits or even access statements from their website. In fact, you can now do all these facilities through the new banking apps, a form of internet banking that will allow you to check information on the move.

While these mobile banking apps, increase the convenience to handle your finances, it also raises the risks of becoming the victim of fraud. However, there are certain steps you can take, in order to protect yourself. They include

• Choosing a very secure password: When you first set up internet banking on your phone, your bank will provide you with a password to initially log in. Once you log into the app, you should change the password to new and secure alternative. While you are changing the password ensure that you, never write down the new password, store the password in your browser, or pass on your password to anybody.

• Enable biometric authentication: Most of the phones that are being introduced into the market have now included biometric authentication to unlock the phones, or even use certain apps. It could be fingerprint scanners or even facial recognition to unlock or access the app. This prevents any unauthorised access to the apps. When you download the app, ensure that is compatible with this feature and include it. This is because biometric authentication is almost impossible to hack. This makes it difficult for cybercriminals to gain access to your device, let alone your app. Moreover, in the event your phone is stolen, your data will still be safe.

• Avoid banking on unknown internet networks: A free network will definitely be tempting to access, especially to surf the web or share a quick Facebook status. However, you should never ever use your mobile banking apps for sensitive activities, such as making transactions or making payments. Any unknown network runs the risks of cybercriminals intercepting your password.  In such a case, it is most appropriate to use your cellular data over the WiFi connection.

• Install anti – malware software: Malwares make it easy for cybercriminals to access your data. Without your knowledge, the malware, which is normally installed without your knowledge, will collect all your passwords and log in details. It will then send this information to the cybercriminals who can easily access your bank accounts whenever possible. In such a case, it is most appropriate to install an anti malware software which will block viruses and spyware from being installed on your phone. Furthermore, it will update you to any suspicious activities, so that you can take appropriate measures to block any unauthorised access.

Stages of a loan application: How the bank loan app will assist you

The loan application process has several stages that you, as an applicant must be aware of. Each of these stages plays an important role in your loan applicant, thus leading to your loan approval and disbursal. While the traditional way to apply for a loan would be to approach the bank of your choice, and its closest bank branch, the new method is to download the bank loan app on your phone and apply for the loan of your choice.

More and more loan applicants are now opting for the new age method to apply for a loan, as it is not only convenient but also time and resource saving. But how can this loan support you in your loan application?

Once you download the app and register for it, there are various features you can check out. One option there is to apply for the loan. Through this app, here are the stages of a loan application and how the loan app will assist you:

Stage 1: Confirm basic identity: This plays an important role in your loan eligibility. The first you would need to take is to confirm your identity. This would mean, you would need to provide details of your age and your gender. You would also be required details of your residency.

Stage 2: Income and employment details: As the next step, you will need to provide details of your employment and income details. In this stage, you would need to provide details of the type of employment you are working in, the name of your company, the income you earn, and whether you have any current EMI’s to pay. All these factors contribute to your loan eligibility to ensure that you will be able to afford the loan you are applying for.

Stage 3: Calculation of your eligibility: Once you have provided the relevant details, the app will automatically calculate your eligibility. This is one way to check loan eligibility without having to take the time and the effort manually to do it. Furthermore, it will help you understand how much of a loan amount you can opt for, and whether you can increase or decrease to match your financial requirements. This way, it will also help you manage your other current debts or any other debts that you will take upon in the future.

Stage 4: Verification of identity details: Once you have proceeded and satisfied the loan eligibility criteria, you can move ahead with the verification of your identity details. You would be asked to provide your PAN and Aadhar card details, wherein which, your identity details will be accessed online from a secured server. Once the details have been verified and confirmed, you can then proceed ahead with your application.

Stage 5: Loan tracking: Once your loan application has been submitted, you can check online for the status of your application. You only need to log into the app and prove your application reference number in order to gain access to the tracking status of your loan application.

Loan application: Applying through the bank versus bank loan apps

At a time when financial requirements will arise, a loan will offer you the required financial solution. Depending on the amount you require, the nature of the requirement, and even the urgency of the requirement, the right loan will satisfy your financial requirement.

But the channel of loan application has now diversified. What was considered the only channel to get a loan, has now got an additional, if not an alternate option. Previously, in order to get a loan, one would need to approach the bank and make an application. Once the bank representative would verify the relevant submissions, the loan would be processed and deposited into the applicant's account.

With the loans online, however, the application is different. You can now get a loan application processed through your smartphone app. You only need to download the relevant app, fill in the required details and submit it for the application.
Here are the considerable differences between the two loan application options:

Bank application:
• Application must be made within a given time: Most banks offer a certain time, to approach when applying for a bank loan. At times, an applicant would also need to make an appointment for the application of the bank loan. While this offers an organised perspective, it also does restrict the time and flexibility you would need to approach the bank.

• Application form: You would need to approach the bank for the application form. The application would need to be filled carefully with each detail. Any mistake would risk a loan rejection; therefore it must be done accurately. Moreover, you may need to do it under the guidance of a representative from the said bank.

• Submission of documents:  You will need to submit documents pertaining to the loan you will be applying for. Furthermore, you will also need to submit documents pertaining to your personal profile, your employment as well as your income. In this case, you will need to submit attested copies of these documents along with the original for verification.

• Loan application tracking: In order to get updates on your loan application process, you would be required to approach the bank or its representative for updates. Moreover, you will need to keep in mind your loan application number and provide it as a reference when you request for updates.

 
App application:
• In app application: In order to apply for the loan, you need to download the app, and submit the relevant details pertaining to your account and your identity. Furthermore, if you have an account with the same bank, the details on your application will be auto filled. This will resolve any issues of inputting the wrong details. Additionally, it offers a convenience when filling up details.

• Submission of documents: The documents you will need to submit includes the Aadhar Card and PAN card. The details of these cards are available online through a secured channel and thus your bank will be able to access it without compromising on your details.

• Constant updates: If you need to track your application, you can easily do so, through the app. The real time updates allow you to keep track of your application and allow you to take the necessary steps to correct any delays instantly.

Did you know you can track your loan through the online loan app?

A loan offers plenty of benefits. For any financial requirement you have, you can easily get a loan to satisfy it. Be it purchasing a product, clearing out any debts, or even saving your savings through a well-calculated payment strategy, the loan will offer you plenty of financial opportunities.

In order to get access to the loan of your requirement from the bank, you will need to approach the bank branch of your choice and fill in the required loan application. You will need to also submit the required documents pertaining to that loan, for example, the loan against property; you will need to provide documents pertaining to the ownership of the said property. Once these documents are submitted, they will also need to be verified.

The overall process is lengthy. But you can keep track of the process with constant updates. By being aware of the application process, you can be well aware if your application is being processed. In such a case you can check to see if your application is proceeding smoothly or there is any unexpected delay. In the event there is an unexpected delay, you can easily take the required measures to ensure that the delay is corrected. This will also ensure that your application is not rejected.

However checking your loan application through the traditional channel would also be a tedious process. For one, you will need to constantly contact the representative from the bank. Normally, you would need to do this within the working hours of the banking institute. Furthermore, you may also get delayed updates, which can risk your loan application.

This is where the online loan app will work in your favour. The online loan apps are designed to let you apply for your loan of choice through the app. You only need to download the app and install it. Once you make you profile and add your bank account details, you can easily apply for your required loan. Proceed with the loan application by providing the relevant details of your income and employment details, after which, you can easily check for your loan eligibility. If you are eligible for the loan, you can then confirm personal details, but uploading details of your PAN and Aadhar card. Once this is done, you can send in your loan application process.

Once you get a confirmation of your loan application, you can use the app to track your loan status. By using this application cum loan tracker app, you can:

• Know whether your loan application is without any issues
• Know whether your loan application has met all the required requirements from the banker's end
• Know whether you need to take any immediate decisions to eliminate issues that have caused the delay in the loan application.

Loan applications online have now become easy!

In today’s day and age, there will be a point in your life where you would be required to apply for a loan. This can be for a financial emergency, easing of a financial burden or assisting in financial expenditures while keeping the savings and income safe.

However, while the loan application does offer you financial support, the process to go about the acquiring the funds is a lengthy one. For one, you would need to approach the bank, in order to apply for the loan. At the same time, you would need to ensure that you have the right documents, for the appropriate loan type. In addition to all this, you would constantly need to keep in touch with the banking representative to get an update on the loan application status. Over all, this process is a tedious one especially for those who do not have a convenient access to the bank branch.

However, banks are now taking measures to ensure that loan applicants, can now enjoy the benefits of a convenient and trouble free loan application process. With the progression in technology, banks have now introduced bank apps that can be easily installed on the smartphone. With this, you can now easily apply for a loan, right from your smartphone. But apart from this, there are plenty of advantages for this loan application process.

They include the following:

Easy access: One of the biggest advantages of applying for a loan online is the easy access. As previously mentioned, you can now download the app on your smartphone. Through your smartphone, you only need to fill in the relevant details, check your eligibility and submit your application. This easy access ensures that applicants, especially those who reside at a distance away from their choice of banking branch, can apply for a loan without any inconvenience. Within a matter of few minutes, you will easily have a loan application processed.

Quick application process: Easy access will lead to the quick application process. As a part of the loan application process, you would be required to submit documents pertaining to the requirements of the loan. This is no different for the online process. You would need to submit your online documents such as the Aadhar card and the PAN card. Since the details of these documents are already available online and verified, the process for you to apply for a loan is now quicker as compared to the traditional process.

Faster comparison: One of the main concerns about loan applications is the difference in the loan rates. Plenty of banks offers different rates for different types of loans. Furthermore, they also offer different deals for selected applicants. But instead of approaching the bank to find out the different loan rates and taking the time to compare all the different offerings, you can easily check online through the bank apps. This will help you make calculated decisions based on your loan requirements and the loan offerings.

Enjoy the convenience of bank loan applications through your smart phone

There will come the point in your life, where you will be required to borrow funds. You may have an option to borrow friends from your close friends or family. However, if the amount is large, or need it on short notice, or even for a specific purpose, you can always apply for a loan from a bank. Applying for a bank loan offers plenty of options, if not benefits. Here, not only will you be able to get a loan amount of your preference, but you will also have a comfortable control and flexibility when it comes to repaying the borrowed funds.

But in order to access these funds through the traditional process, you will need to approach a bank and get your application processed. At the same time, you would be required to submit certain documents that need to be verified. Once all these documents have been accurately submitted and verified in accordance with the banks representative, will your loan application be processed? However, this application process has several shortcomings. For one, the application process is long which may not be the appropriate solution during any financial emergency. Additionally, applicants who may not have a bank branch located nearby may not be able to access the loan they want.

To counter these problems, banks are now offering loans through the smartphone apps. Technological progression and the fact that almost every individual in the country possesses a smartphone, allows banks to reach out to potential loan applications and satisfy their financial requirements. Here is how you can enjoy the benefits of a loan from a bank, through your smartphone application.

Convenience: One of the main benefits of applying for a loan through the bank is the convenience. No longer would you be required to approach a bank of your requirement, and put in an application for the loan. This eliminates other resulting features such as approaching the bank within the given working hours or standing in long lines to get your application approved. By applying for loans through the bank app, you can easily apply for a loan at any point in time. You can even apply for the loan from the comfort of your home, your workplace, or even when you have ample free time.

Fast process: Each type of loan from a bank will have different processing duration. Additionally, through the traditional channel, an applicant would need to approach the bank several times to get the loan processed. However, through the app, you can easily get your loan application approved in a mere matter of minutes of not an hour. You only need to provide relevant details such as your bank account details, your employment status and details of your income. Once this is processed, you need to check your eligibility and proceed with the loan application.

All you need to know about Understanding the Payment System Under GST

GST has been a major reformation in the Indian economy. It stands for Goods and Services Tax and its liabilities must be computed every month. The concept of GST payment revolves around removal of several indirect taxes such as excise duty, state tax, VAT, entertainment tax and luxury tax and others. It was passed in August 2016 and implemented on the 1st of July 2017. This will make the taxation system uniform and reduce the burden put on people by the payments of multiple taxes. Goods and services have been categorised into the following tax rate slots 0%, 5%, 12%, 18% and 28%. Rough and semi-precious stones and gold have a special rate of 0.25% and 3% respectively. The entire concept of GST revolves around subsuming all the indirect taxes into one single tax.

ADVANTAGES OF GST

1) Removing cascading tax effect.
2) Higher threshold for registration.
3) Composition scheme for small business.
4) Online simpler procedure under GST.
5) Lesser compliances.
6) Defined treatment for e-commerce.
7) Increased efficiency in logistics.
8) Regulating the unorganised sector.

IMPACT OF GST

Salaried employees- The term goods and services tax clearly demarcates the taxation area. It is applicable on business and salaried employees won’t be affected directly by this. Prices of most of the commodities shall change and this may indirectly affect this class.

Business- Doing business will be a much sorted affair with the elimination of a mesh of taxes and the creation of a single market. But these advantages shall only be visible on the long run.

Crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas shall not be taxed.

COMPONENTS OF GST

CGST- the Central Goods and Services Tax shall be levied by the centre.

SGST- the State Goods and Services Tax would be imposed by the State.

IGST- Integrated Goods and Services Tax shall be paid when goods or services of one state are being sold in another. This shall also be levied by the centre.

HOW TO PAY GST

GST payment is done on every level of value addition by the buyer. Every person involved in a business must file for a GST return. The following must be submitted by a registered dealer in this process:

1) Purchases
2) Sales
3) Output GST (on sales)
4) Input tax credits (GST paid on purchases)

The dealer has to file 3 monthly returns and one annual return amounting to 37 returns in a year. The variation between this output GST and Input Tax Credit shall be the amount either payable or returned by the government.

Steps to get the best personal loan rate with this Tool

Redefine the way you look at your personal expenditures by taking a personal loan, be it for the trip you had been longing for, a new phone, or that picture perfect wedding. Your dreams are just a few clicks away on a personal loan EMI calculator that will give you a clear picture about how little you have to spend monthly.

Always compare the rate of interest for a personal loan before applying for one. Also check for provisions of flexible payment schedules. You can calculate the EMI to be paid in different instalments by using the personal loan EMI calculator and it also saves you from visiting all these offices to get a detailed scenario, if you take a loan from there.

Spending Rs.5,00,000 instantly may seem to be a very difficult task for many but when this is broken into payments over 60 months at an interest rate of 7.75% the amount payable monthly would be Rs.10114. The personal loan EMI calculator changes the perspective with which we look at something expensive and makes it seem much more affordable.

The best thing about a personal loan EMI calculator is they give you an error free figure that is easy to understand. It also helps spare the need of running to the bank personally to know the status of your loan account. You can sit at home and have a clear view of how far you are in repaying your loan.

STEPS TO BE TAKEN WHILE APPLYING FOR A PERSONAL LOAN

Make a budget – According to your need plan a detailed budget. Over-borrowing may seem to be a safe option but in the long run you would be in a debt for an unnecessarily extended period of time. Similarly you would not even want to end up with an amount lesser than you need.

Realise your affordability – After considering your monthly expenditure make a note of how much money you are left with. Make full use of the personal loan EMI calculator to determine how much your monthly instalments shall amount to. Compare it with the amount you have extra every month and decide wisely whether or not to go ahead with the loan.

Scan the market for best rate of interest – Look for the lowest rate of interest on your loan. This scanning can be done easily sitting at home surfing the internet.

Find suitable time period for repayment – Also take into account the tenure of the loan and the policies related to paying it off early or extending it. Often banks have rules that do not allow paying off of loans before the loan period ends or they include a higher interest if you try to do so.

The Ideal Remittance Guide You Should Refer To

India has made an astounding progress economically in the last few years. Many who leave the country in search of better career prospects often feel the need to send money to India. In the previous year, India has surpassed China to become the highest remittance-receiving country in the world according to a UN report. When you remit to India you contribute greatly to the development of the country’s economy as the inflow of foreign money into the Indian economic clockwork means more funds for channelization in developmental projects.

DIFFERENT METHODS OF REMITTANCE

The different methods of remittance can be classified by the mode of transfer into two broad headings, manual deliverance of funds and electronic transfer of funds.

MANUALLY THE FUNDS CAN BE SENT IN THE FOLLOWING WAYS:

MONEY ORDER- You can buy a money order form the bank, certain retail stores and post offices and post it to the person you wish to pay. It is one of the oldest ways to remit to India. The receiver of the money order can either get it cashed or deposit it just like a draft or a cheque. Though it is a time consuming method, it is preferred because it is a secured way. In case it is lost or stolen it can be replaced. Also the advantage of being able to use a money order without having a bank account makes it very convenient.

FOREIGN CURRENCY CHEQUES- The simplest way to send money to India is writing cheques and posting it. The only disadvantage of this direct method is it takes a lot of time. But once it reaches, the receiver can simply go to his bank and deposit it or cash it as per his needs.

FOREIGN CURRENCY DRAFTS- This method is very similar to sending cheques from abroad. It is a method preferred by businessmen. There is no chance of a failed transaction like a cheque as sending a draft does not depend upon the balance you have in your account.

ELECTRONIC TRANSFER OF FUNDS CAN BE DONE IN THE FOLLOWING WAYS:

REMITTANCE CARD- This is like a debit card that can be used to pay for all the needs and requirements of the people in India. For using it, the person staying abroad has to recharge the card and the amount will be available for use in India. This saves a lot of time and is the most convenient option for those who are technologically sound.

DIRECT DEPOSIT- This method is the best possible option for those who transfer funds regularly to India. Here an Indian bank is authorised to withdraw money from that person’s account in the foreign bank. The money transferred can be collected by the recipient directly from the bank.

Make a smart money transfer to India with these tips

A responsible Indian never forgets his family and their needs where ever he/she may be in the world. He always looks for a way to provide for all the necessities and comforts even if he/she is staying away. The biggest task for those staying abroad is selecting a method for money transfer to India.

1) Realise who you are sending to – We may often need to send money to different people from different socio-economic backgrounds. There are still many people living in India who do not have bank accounts. To cater to the needs of such a person you would have to resort to an age old method of sending a money order. A money order is a payment certificate that you can buy from a bank, post office or some retail stores. The receiver of the money order can either cash it or deposit it directly to his bank account just like a cheque or a demand draft.

2) Make transactions when rupee value is higher – The value of one pound in rupee keeps changing with the fluctuating market rates. So if you transfer funds at a time when the rupee value is low the receiver shall get lees money as compared to then when the value is higher.

3)  Urgency of your transaction – If you do not have an urgency to make a money transfer to India you can take time and send it in the form of cheques, demand drafts or money orders. But if you are in a hurry the best option for you would be using a remittance card. All you need to do is, buy a remittance card on behalf of your family and recharge it regularly. Your family can use this card to withdraw money or make payments as and when needed. This is the most convenient option to carry out a money transfer to India from other countries.

4) Purpose of your transfer – If you are sending the money for an official purpose and specially in case of making payments in business that involves export and import of goods you should use the foreign currency drafts. This process takes time but is safer. Also you can avoid chances of transactions failing due to low balance in your account.

5) Open an NRE account for your transfers and earn interests – An NRE account stands for a non-residential external account. You can open one of these in an Indian bank before leaving the country (opening such accounts from abroad is possible but complicated and time consuming). You can deposit your earnings in foreign currency to this account and the bank shall pay you a good amount as interest. You can have this account in joint-holding with anyone from India or authorise a person in the country to operate your account by giving him a power of attorney. This shall reduce your problems faced for money transfer to India considerably and you will also earn a good amount as interest while taking care of your loved ones.

Looking to get an optimum result on your FD? Used the FD Calculator

Investing in Fixed Deposits is one of the best and most secured ways to let your money grow. It is a onetime investment that reaps interest monthly, quarterly or at a short term as per your choice. The safest feature of a fixed deposit is that it is not subjected to market risk. You get an assured return on your amount invested. The maturity amount and the interest earned when you open a Fixed Deposit account can be determined using an FD calculator. This gives you a clear picture of how your investment is working out.

To optimise your outcome from investing in fixed deposits you should always compare the rate of interest provided by the bank, the time period for which the investment is being made and at what interval the interest is being calculated. The FD calculator comes in handy while analysing where to invest.

It is wise to make multiple FD accounts than investing the entire sum at once. In case of an emergency, even if you withdraw from one of the FD accounts while the others stay intact. The bank in case of a premature withdrawal from a fixed deposit account levies a penalty that it deducts from the amount it pays you. The amount that you receive in such an instance is calculated using an FD calculator by the bank and it includes the principal amount and the interest earned till then.

Your FD might be your easiest way to get a loan from the bank. The bank where you have your FD account can provide you with a loan of nearly the amount of the value of your FD. The percentage given as a loan ranges from 85-90%. This loan is granted for a short period of time and under no circumstances can exceed the period of you FD. You can know your loan amount by calculating the value of your FD.

The FD calculator can be a good guide for determining the way to extract benefits of your FD. When the math is done we get a better grip on what we are heading to. The interest you earn out of your FD can either be reinvested or withdrawn.
Reinvestment provides you with a higher amount of interest than the previous year. If you keep withdrawing the same rate of interest is given every year until your FD matures. The interest earned from FD is taxable if it crosses a certain limit. There again FD calculator helps you to assess your interest amounts and aids in its management. It is a tool that simplifies the financial jargons and gives you an easier insight into your money and its management.

EMI VS SIP: Which is the better Options?

Our needs are changing every day. Gadgets, lifestyle objects and vehicles are now slowly becoming a part of our daily needs. To meet with these requirements we need to choose the mode of payment wisely depending on our income, affordability, price of the product and our other liabilities. Various fund management and payment methods such as SIP and EMI have come up that makes expensive goods affordable. With EMI calculators being available online we can now easily enter our required amount and suitable time through which we shall repay and voila we know much we need to pay every month sitting at home.

WHAT IS EMI?

Equated Monthly Instalments (EMI) is a method to repay a loan taken by a person from a bank. It is a fixed amount that a person pays to the bank each month to pay off the principal amount borrowed and also the interest acquired on it. EMI facilities are available on all forms of loans such as car, house, education etc. You can also use emi calculators to facilitate emi payments.

WHAT IS SIP?

Systematic Investment Plan (SIP) is used for a mutual fund scheme where you are allowed to invest small amounts over a period of time rather than paying a lump sum amount once. The amount payable at a SIP can be as less as Rs.500.

EMI VS SIP

The utility of EMI and SIP are case sensitive. They both have their advantages and dis advantages. While EMI increases the net amount paid by you for purchasing a product, SIP increases the time needed for you to be able to buy it. A SIP is useful when we want to develop a fund and have future plans to invest them. But for immediate needs EMI is a better solution.

EMI gives you the option of purchasing in the present instance. Situations like expenditure for your education cannot wait for you to slowly grow your fund. This has to be done immediately before you pass the eligible age. Here taking an education loan is a better option. Loan calculators help the process of determining monthly EMI’s by dividing the principle amount and interest acquired by the time over which it shall be repaid. But if you think from another perspective a student starting a career is burdened with the yoke of a pending amount. Here as a parent, you can start saving early in small amounts for your child’s future and education through SIP. 

It is intelligent to pay EMI for creating an asset such as building a house rather than for buying a product whose price depreciates over the period through which you pay the EMI such as a car, laptops, furniture etc.

Benefits of Scheduling Future Transactions in Mutual Fund

Investments are the got to option for you to roll your money. The common concern about investments is what to invest in. Mutual funds are usually the safest and most feasible option especially for new investors. Investing in Mutual funds through Systematic Investment Plan (SIP), gives the investor the option to invest periodically and not shell out a large sum of money at once.

It has been seen that while investing, investors prefer to set a specific date for carrying out their transactions (both payment and receiving). Depending upon their convenience and availability of funds and their need, they can schedule future transactions while investing in mutual funds India. This date of payment can be set according to an investor’s schedule of receiving payments, redemption of funds from other investments or other reasons for a cash inflow. Also the date for redemption of the mutual fund or receiving the dividend can be adjusted as per the needs of the investor.

To schedule and manage future transactions in mutual funds India, the investor should have a common account number (CAN) that is issued by the Mutual Fund Utilities (MFU), which is a shared service initiative taken by the mutual fund industry under the aegis of Association of Mutual Funds in India (AMFI). This CAN allow an investor to access and manage multiple mutual fund schemes across participating fund houses.

BENEFITS OF SCHEDULING A FUTURE TRANSACTION

1) Flexibility of the date of transaction – The transaction can be made as per the need and convenience of the investor and need not depend on the predetermined date as per the company. This helps the investor to plan payments from the amount received from the mutual fund as well as for further payment in the fund (as in the case of SIP) or further investment.

2) Transact from anywhere – Having a CAN will let you make the transactions online and it will save you from a periodic visit to the mutual fund office or the intermediate agent. This lets you manage your funds sitting at home.

3) Payment made on the same date – Once you fill up the CAN, you can use the CaST (create and schedule transaction) facility to plan your future transaction. On the date you have scheduled your transaction, you shall receive an SMS and email to make the payment (in case you wish to purchase mutual fund units). Your payment shall be cleared on the same day.

4) Will prevent you from defaulting – The notification system and flexibility will help you manage your funds better and will do away with any chance for you to become a defaulter.

5) Provides you a long time to arrange for payment – It is allowed to plan a transaction for up to 90 days in advance and hence provides you sufficient time to be prepared to make the payment.

All you need to know about Online Tax Payments

India is making a considerable progress in the field of information and communication technology in the recent years. The implementation of the ICT can be seen in the developing e-governance policies. The spear heading venture in this development is the provision of online payment of taxes. Online tax payment is saving lots time and labour and increasing the transparency of the administrative system.

HOW TO PAY TAXES ONLINE?

From your income tax to property tax to wealth tax can be paid online. To make online tax payments you must have a bank account with net banking facility and also ensure that the bank has provisions for making E-payments. In case you do not have an account in a bank that provides such facilities or is an unauthorised bank for paying taxes you can pay your tax from another person’s account but make sure that your PAN is mentioned in the E-challan.

WHY PAY TAX ONLINE?

Saves time- You can save lots of time and avoid standing in long to pay your tax. This has been a huge harassment associated with payment of taxes. Old and young, irrespective of age were seen standing in long serpentine lines for hours outside tax offices and registered banks for collection of taxes. Online payment allows you to sit at home and pay the tax at your convenience.

Accuracy- To err is human, there will always be a big chance of errors occurring when other people are involved. Filling in the details for your own tax payment will save you the harassment of having misspelled names and inaccurate information on your receipts that are extremely important for future reference in case of any dispute.

Convenience- Online tax payment can be made at any time of the day. While paying manually you are limited by the banking hours to make payments but the online transaction increases your convenience.
It increases transparency- Corruption can be curbed by increasing the use of online payment. Chances of taking bribe will be eliminated as there would be no human interface involved while carrying out a transaction.

Can be paid from any location- You do not need to worry about becoming a tax defaulter just because you are out of station anymore. Through online tax payment options you can pay your tax from any location and will not need to worry about visiting the specific collection centre or office.

No chance of misplacing your receipts- The E-challan is automatically generated immediately after you make the payment for your tax online. This can be saved virtually for future reference and when needed, it can easily be downloaded.

Do you know the benefits of the Different NRI Accounts

The need to hold an Indian bank account does not cease when a person leaves the country to stay abroad. To serve this purpose, banks offer NRIs with special types of accounts such as the Non-Resident External (NRE) Account, Non-Resident Ordinary (NRO) Account and the Resident Foreign Currency (RFC) Account. These facilities helps people staying abroad take care of their family and close ones back in India, with faster and less complicated modes of transaction. With the increasing popularity of digitalization and betterment of the internet facility, transacting and managing NRI accounts have become much easier. Many banks have branches across the globe that makes operating such accounts with better convenience.

TYPES OF NRI ACCOUNTS

1) NRE savings account
2) NRO savings account
3) RCF  savings account
4) RFC savings account
5) NRE current account
6) NRO current account
7) RFC fixed deposit account

REASONS TO HOLD AN NRI

1) NRIs are not allowed to hold resident savings account in India as per Foreign Exchange Management Act (FEMA) guide lines. Hence existing accounts should either be converted to NRI accounts or opened separately after closing the resident account.

2) Manage your earnings from India such as rent, pension, dividend etc. while staying abroad can be done through your NRO account while you shall enjoy a certain amount of interest as well.

3) Earn tax free interest on your foreign income made outside India (NRE). A high rate of interest is provided by the banks on depositing foreign earnings and the amount is tax exempted. This the most important reason why people living abroad wish to hold an NRI account.

4) For those who have returned to India after being an NRI for at least over a period of one year it is very convenient to have an RFC account. You can enjoy tax exemption for the time you remain a Resident but Not Ordinarily Resident (RNOR). This account also allows a person to change it to an NRE/FCNR account in case the person goes back to an NRI status.

5) Manage transactions in India from abroad. You can authorise a person in India to operate the account. In case of an emergency your money can be accessed without your presence. Cheque books and ATM cards are issued to the authorised person.

6) The monthly balance to be maintained is lower as compared to those in foreign banks. This gives you more flexibility to manage your account.

7) Banks provide NRI account holders with international debit cards making transactions abroad faster and more convenient.

How to enjoy instant credits immediate payment Service

Festivals have got a new reason for spreading happiness, as banking goes beyond the banking hours and holidays. The last minute shopping and gifts can now be arranged without worrying about going to the bank. With Immediate Payment Services (IMPS), transactions can be made more easily and quickly. This facility allows you to transfer money to any account of any bank at any time of the day and also on Sundays and Bank Holidays. It saves you from standing in long unending cues to manage your money. The process of transfer of funds takes no time and the transferred amount gets immediately credited to the beneficiary’s account.

All you need to do to enjoy the IMPS service is having access to internet or mobile banking. It is compulsory to have your mobile number and a 7 digit Mobile Money Identifier (MMID) to transfer money using IMPS.

You can use the following methods to transfer funds by IMPS -

NET BANKING

• Log in to your net banking account.
• Go to “Funds Transfer” tab.
• Click on IMPS funds transfer using mobile number (you will need the beneficiary’s MMID), enter the details and confirm the transaction.
OR
• Click on IMPS funds transfer using account number (you will need the beneficiary’s IFSC code), enter the details and confirm the transaction.
• A confirmation SMS would be sent to you for your IMPS transaction.

MOBILE BANKING

(Android/iOS/Windows/BBZ10 apps)
• Log in to mobile banking.
• Click on fund Transfer Tab.
• Click on other bank using IMPS.
• Select option using IFSC/Account number.
• Select beneficiary, enter amount, remark and then confirm.
• A conformation SMS shall be sent to you for your IMPS transaction.

(Blackberry)
• Log on to mobile banking.
• Click on third party transfer.
• Click on IMPS funds transfer.
• Fill in the details of the beneficiary such as the mobile number, MMID, amount and comment and then confirm.
• A conformation SMS shall be sent to you for your IMPS transaction.

You will be charged a small amount as fee for using IMPS. The best part about IMPS transfer is that even if the receiver is not registered for IMPS, you can proceed with the transaction by filling in his account number and the IFSC code. It is also an extremely safe way of transacting as it has a two-step process to initiate a transaction with either the mobile number-MMID or the account number-IFSC. In case of any mistake while entering the number or codes the transaction will not be processed. IMPS is a very handy tool for the fast paced modern society and is a go to option while making any transaction.

Prepaid mobile recharge versus netbanking: Online Mobile Recharge

Communication is a necessary aspect of survival. Today cell phones or mobile phones are the most convenient and versatile mode of communication. Over the past decade, the facilities provided by mobiles have increased significantly. Now, the one thing without which you cannot continue using your mobile services for is mobile recharge. Earlier prepaid mobile recharge was the possible offline by going to the retailers. But now with the growth in the use of internet facilities it is possible to do online mobile recharge using net-banking services. Both these ways differ on a few aspects like:

• 24x7 Service- The biggest benefit of online mobile recharge is that it can be done at any time of the day. You can do it early in the morning, late at night or any other time throughout the whole day. This is not possible in the traditional offline way of going to the retailer and getting your recharge done from there.

• Recharge from anywhere- In the traditional way of prepaid mobile recharge you are required to go to the shop for getting the recharge done. In case the shop is too far or it is closed then this can prove to be quite problematic. Online mobile recharge can save you from the hassle of going out every time you need to recharge as it can be done from anywhere. You just need your smartphone and internet connectivity. Then you can do your recharge from your home or any other place.

• No delay- The offline mode of recharge can sometimes get delayed if the retailer is busy in any work or if by chance he forgets to do the recharge. So, it is not always efficient. But online mobile recharge takes care of this inefficiency as it is fully automated. There is no chance of human error and you can get your recharge done instantly.

• Multiple options- In the offline prepaid recharge service your options are limited to the number of retailers around you. You may face a situation where a retailer may not provide recharge services for your network provider. This will put you in a difficult situation where you have to again search for another retailer that provides recharge services for your network provider. This problem can be avoided in the online mode where you can find multiple apps and other service providers easily.

• Extra benefits- Online mobile recharge provides you with cashbacks and discounts on your recharges.  At times you may also get extra talktime or other such benefits.

So both the offline prepaid recharge and online mobile recharge through net-banking or other apps has their own unique features. The online mode provides certain benefits over the traditional offline method like anytime service, rewards etc. Therefore, opting for online mobile recharge can prove to be a good and smart decision.

How to remit funds from your NRO account?

NRO accounts are one of the best features the banking sector has to offer. It gives an NRI the option to open an account in India that can be jointly managed by a resident also. It also provides you the option of easy redesignation of the account in case you become a resident in future. The Indian Government allows you to repatriate up to a million USD per financial year. In order to remit funds from your NRO account you have to follow the procedure given below:

• Get Documents- There are two documents that you need to submit for remitting funds from your NRO account. These documents ensure that proper taxes have been collected on the funds before remitting them abroad. This is done because it is difficult for the government to collect taxes after the funds are remitted abroad. You must be careful to get these documents in the correct order and also fill them up correctly with the required information.

• Submit Form 15 CA- In this form detailed information about the remitter like his name, address, permanent account number and details of the account where funds will be remitted. It also contains information about the accountant responsible for verifying the form 15 CB. You have to submit the form online on the Tax Information Network website. After you submit the form you will then receive an acknowledgement. You will need to take a printout of this acknowledgement and sign it wherever required. Then you need to submit this signed acknowledgement at the bank along with the Form 15 CB.

• Submit Form 15 CB- This form is actually a certificate that you need to get from a chartered accountant. It certifies that you have made all your tax payments levied on the funds that are going to be remitted. In case that you are availing lower rates of TDS under the policy of Double Taxation Avoidance Agreement, the chartered accountant may ask for your Tax Residency Certificate. If that happens you will need to attach a copy of it and submit it to the chartered accountant. The accountant will verify the documents and then approve this form. After that all you need to do is submit this form to the bank.

So, in order to remit funds from your NRO account the first thing you need to do is procure the required documents. The form 15 CA is available online. You just have to give your detailed information and submit it online. The next step is to print the acknowledgement received after submitting the form. Then you need to go to an accountant to certify your tax payments on the Form 15 CA. This you need to attach to the signed acknowledgement and submit it to the bank.

How to get the best car loan rates today

The use of automobiles is now an integral part of any individual’s life. Almost everyone wants to own a car at some point of time in their life. There is no denying that owning a car helps you a lot in your daily life. But the primary cause of concern you may face when you decide to own a car is the arrangement of funds. You may be looking to buy your first car or you may want to have that dream car you always wanted. Whatever the situation maybe, the best help you can get for your problem is going for a car loan. It helps you buy that car without causing too much financial stress on your pocket. The only thing you need to ensure is that you get the best car loan rates so that you can easily pay it back in time without any trouble. Some ways through which you can get the best rates for your car loan are:

• Plan ahead- Looking for auto loans before you negotiate the purchase of your desired car is a good way to get the most out of car loans. If you can start looking into the loan offers that different banks provide from beforehand, it will give you sufficient time to compare and choose the best deal. You can browse through banks, online lenders and credit unions to get a good idea of the different interest rates they have for car finances. You can then pick the one most suitable as per your needs.

• Get pre-approved loans- Getting your loans pre-approved before you finalize a deal for your car can prove beneficial in certain ways. First, you will be able to get loan at rates that you are comfortable with even before going in for the purchase. This will give you the mental satisfaction that at least you have got a good deal for your car finance before going for the final purchase. Secondly, you will receive a blank check from the lender for the purchase. So, if you may come across a better deal elsewhere, you can just return it for minimal charges and get the better deal.

• Total loan cost- Slight variation in interest rates can make a lot of difference in the total amount that is to be repaid. The time period of loan repayment is also a major factor. You should always consider the total amount you have to pay as interest during your loan period. Opting for a short term loan is better than a long term loan as the total interest you need to pay will be less.

These are the things you can follow to get the best loan rates for your car finance. This will not only help you buy that car you want but will also ensure you don’t end up in any financial problem in doing so.

How to effectively calculate your car loan today

Are you confused about your car loan options? Fret not! Use a car loan calculator to calculate your loan details and bring that smile back on your face. With more people coming into middle class bandwagon, the demand for car loans has seen an upswing.

A car loan can help you fulfill your dream of owning a car. Before you opt for a car loan from any lender, you need to do an exhaustive research on the loan and its features. Compare a wide range of loans on the internet and pick one that best suits your financial requirements.

What is a car loan calculator?

A car loan calculator is a simple and easy to use tool that helps you finalize a suitable loan amount and then manage your finances accordingly. You can find the EMI amount with the help of a car loan calculator and then decide on the final loan amount accordingly. The car loan calculator requires you to enter details like the loan tenure, principal amount and the interest rate.

Salient features of a car loan calculator –

1. A car loan calculator is a very convenient and hassle free tool which you can use to calculate the monthly payments.

2. Apart from entering the loan tenure, interest rate and the principal amount, a car loan calculator also has provisions for adding the processing fee for a loan.

3. This calculator also allows you to take into consideration prepayments. You can add the prepayment penalty, prepayment frequency and the prepayment amount and then find out how all of this is going to affect your EMIs.

4. The amortization schedule is also projected by a car loan calculator. In addition to this, it also has provisions that allows you to add loan repayment timeline and the interest outgo, which can help you take smart payment decisions.

5. The results of a calculator of this kind are very accurate as there is no chance of human intervention which minimizes the risk of error.

6. You can keep changing the data as much as you like. The car loan calculator does not have any restriction on the number of times you can enter the data.

7. You get quick results on using a calculator of this kind. It might take a while if you were to do the calculations manually.

8. You can calculate the entire interest amount that you have to pay to the lender. Once you calculate the entire amount using the interest rate then you will get a proper idea of how much the loan is going to cost you.

Things you need to remember when opting for two wheeler insurance

Want to purchase a new bike this monsoon? Well, that is a grand idea. The thought of traversing the rain soaked roads with potholes on foot is a nightmarish idea. Riding a two wheeler on the other hand is a much better proposition.

There are some things you need to consider while purchasing a two wheeler, one primary thing being its insurance. Riding a two wheeler in this country requires its owner to have a valid insurance cover, without which he/she will face penalties. Since an insurance is mandatory, being armed with the necessary information will help you purchase the best insurance for your two wheeler. Here are the important points that you need to consider while purchasing an insurance –

1. The type of policy
There are two types of two wheeler insurance policy. One is the liability only policy which is the mandatory policy. This policy covers that third party damage caused by the vehicle in question, it covers accidental or property damage to any third party. The second type policy is the comprehensive plan which in addition to the liability only policy, also includes the damage caused to own vehicle.

2. The type of coverage
There are a number of coverage options available – vandalism, fire, collision and theft cover etc. Choose a coverage plan that suits your requirements in a two wheeler insurance policy.

3. What factors are affecting your premium?
Features like what is the cubic capacity of the bike in question and what zone the vehicle comes under affect the premium you need to pay. Higher the cubic capacity of a bike, higher is the amount of premium that needs to be paid.

4. What is the status of NCB?
The owner can avail a NCB (No claim bonus) for every years where no claims are made. NCB is a discount that the insurance company offers on the premium for the subsequent year.

5. An uninsured motor cover
While a third party insurance cover is mandatory in the country, there are plenty of drivers who don’t get the insurance updated. This causes the insurance cover to lapse. So if you get into an accident with an uninsured rider, you cannot make any claim and have to pay for all the expenses. Having an uninsured motor cover as a part of your two wheeler insurance policy is a safer option.

6. The IDV
The IDV or insurance declared value is the insured amount of the vehicle, this amount does not change during the tenure of the policy. It is based on the cost of purchasing the vehicle and the depreciation adjustment hinged on the vehicle’s age.

Do you need a health insurance that covers you overseas?

Insurance policies are a necessary thing that every adult invests in. It helps us secure our properties, health and the future of our family members. One of the most important aspects of insurance is health insurance. Investing in health insurance is a primary objective for any responsible adult. It ensures that you and your family is secured in case of any medical emergency or medical situation that may arise at anytime in future. However, most of the health insurances cover you only inside the country, or more accurately, most people choose health insurance policies that cover them only inside the country. But you may want to consider choosing a health insurance that covers you overseas for the following reasons:

• Medical coverage abroad- The benefit of having an overseas health insurance is that it provides you medical coverage while you are travelling abroad. You can go on tours or vacations abroad without any worry about facing any problem if you come across any medical situation. These plans provide coverage for hospitalization, emergency medical evacuation, prescription of medications. It also covers repatriations and provides you with doctor visits while you are travelling or staying for short durations abroad. You can choose your overseas health insurance plan depending on how long you spend abroad. You can either go for a short term insurance plan or a long term insurance plan to suit your needs.

• Chronic medical condition- If you are someone with a chronic medical condition having an overseas health insurance is a good idea. If you suffer from any condition like diabetes, arthritis, migraine, asthma, anemia or any other chronic medical condition or if you are in a high risk category for any such condition then you must invest in this. It will prove to be a good choice in the long run as if ever you need to travel abroad it will have you secured for your medical condition. It will provide you with appropriate medical treatment for your chronic health condition if you ever encounter any problem while you are abroad. You can now travel without any worries about your condition from affecting you.

So having an overseas health insurance provides health coverage to you when you are abroad. It keeps you secured in case of any emergency medical situation that you may face while you are abroad. In case you have a chronic health disorder or anyone in your family has one then it will prove beneficial to invest in overseas health insurance. It would also ensure you a stress free travel and stay abroad.

How to make monthly international money transfers a convenient process?

Staying abroad is a dream that almost every person has had at least once. Today, with the growing opportunities in every field, more people are living this dream. One of the important factors you should look into to have a hassle free stay abroad is money transfer. Whether you are staying abroad for educational purposes or for employment purposes you need to make international money transfers on a regular basis. If you are pursuing higher education you need to receive money from your parents to manage your expenses. On the other hand if you are working abroad you will need to send money to your family periodically. Thus a hassle free international money transfer process will be in your advantage.

In order to ensure that you have a smooth and efficient international money transfer you can follow these simple steps:

• Assign account only for transfer- You can assign a separate account just for money transfer. This will help you in the long run. First of all you can easily keep tabs on the amount that is transferred. Using a separate account will also ensure that no other transactions are made from this account. For instance, you can have a salary account and another separate account for money transfer. This in turn will make it convenient for you to keep track of your finances and manage them easily.

• Set up automatic transfers on fixed date with fixed funds- One of the best ways to make monthly international money transfers easy and convenient is to set up automatic transfers. You can schedule money transfers on a fixed date each month with a fixed amount. It is a very simple procedure which will allow you to easily transfers funds each month without having to go to the bank. You just need to log into your online banking profile, select the amount you want to transfer and the account where you need to transfer to. Then you need to choose the “Schedule Transfer” option from the Transfer Type list and select date of the transfer. The last step includes selecting the frequency of transfer and the end date.

• Set up alerts for transfer status- You can set up alerts for your transfer status. This will help you keep track of your transfers without going to the bank. You can get instant updates and alerts on your mobile through text messages.

So, following the above mentioned steps you can make your monthly international money transfer more convenient that will help you have a peaceful stay abroad.

Why should you let your college children have a credit card

College is such a stage where an individual goes through the transition from a teenager to a responsible adult. They take important decisions about their life, becomes more mature, learn to take care of themselves as most of them start living away from their parents. These experiences make them more responsible and transform them into a grown up ready to take on the world. In order to become a more responsible individual they must also learn to manage their finances. This includes managing funds, expenditure and savings. For this, credit cards is a must. Every person has to use a credit card at some point of time in their life. So it’s better that you let your college children have one which only not only teach them how to manage their expenses but also provide added benefits like:

• Credit cards with limited credit line- Some of the best credit cards in India allow you to choose a credit card for your child that has limited credit line. This will not only allow you to keep a limit on their expenses but will also make them learn to regulate and keep in check their own expenditure.

• Ease of transaction- Having a credit card will lessen the burden of your children having to carry cash everywhere. They can easily make payment related transactions anywhere with their credit cards. For instance, payments for online shopping can be made easily with a credit card.

• Payment of fees- Every college student needs to pay their college fees, which in fact are a huge sum of money. Having a credit card facilitates the payment of the college fees on time without any delay.

• Security in case of emergencies- If your child has a credit card it will act as a backup in case of any emergency payments he may need to make. For instance in case of any medical emergency they can use their credit cards to make payments so that it won’t halt the treatment process.

• Rewards and benefits- Credit cards offer many cash back rewards. These rewards automatically get deposited in the savings account and can be redeemed for gift vouchers at certain retailers.

• Create an early credit history- College children can use credit cards to build an early credit history that will help in the long run. Credit history plays an important role in boosting the credit score and the best credit cards in India value a long and healthy credit history.

So giving your college children a credit card can prove to be a wise decision. It can help you make them responsible as well as provide security in case of any emergencies.

Send money to India: Tips to ensure a smooth and stress free money transfer

The advent of globalization in the 90s reduced the economic barriers between the countries. With the passage of time more and more business companies and other organizations extended their market internationally. This opened up the doorway to more number of individuals working abroad. At present, many people get jobs in foreign lands and many more frequently need to go outside the country for work purposes. This has made money transfer more important than ever. You may need to send money to India from abroad to your family or you may need to do so for business purposes. Whatever the reason maybe, the following tips can help you ensure a smooth money transfer from abroad:

• Plan ahead- Planning ahead is a good way to ensure that you minimize the costs. You can research about the different methods and shops that are used for money transfer and select the one best suited to your needs. You can opt for electronic transfers as it is one of the most efficient and appealing way to transfer money. Another cost effective choice is opening an account in an international bank. This will allow you to make intra-bank transfers and hence reduce your costs.

• Know about the fees- Having the knowledge about the fees charged by the brokers, banks or money transfer shops will help you save your hard earned money from unnecessary expenses. Charges are usually made on percentage basis. So knowing about them beforehand will help you prevent them from eating up the funds you transfer. For instance, money transfer in smaller denominations cost much more on a percentage basis. Proper knowledge about this will help you take decisions wisely and hence, save your funds.

• Know the Exchange rate- You should know about the exchange rates in order to minimize the cost of your money transfers. Keeping an eye on the current exchange rates can help you pick out favorable time of sending money to India.

• Limit use of Instant Transfers- Limit the use of instant transfers to only during emergencies. These are the type of money transfers that costs the most.

So you should try and keep its usage to the minimum, only for times when you need to send money to India quickly on an urgent basis.
These are some of the tips that can help you have a smooth money transfer when you need to send money to India. It will save your funds from unnecessary expenses and ensure that you experience a stress free money transfer.

Why do you need mobile banking apps today

In recent times, with the quick pace of developments in technology, the world experienced a sudden surge in the field of mobile applications. The number of mobile apps available to the public has increased at an enormous rate. It has touched almost all the sectors, from food and lodging to travel and tourism. One of the sectors where this technology has brought a revolution is banking. Today most people are using mobile banking apps in their daily life for various banking activities. If you are still untouched by the phenomenon of mobile banking then you should consider the following things:

• Easy Anytime Access- In the older days, banking was only limited to the office hours when a bank was actually open. You had to go to a bank for performing any kind of banking activities. Apart from this, making transactions or doing any banking activity on public holidays was not possible. The introduction of mobile banking has done away with all these problems. With a mobile banking app you can perform your banking activities at any time, any day even if the bank is not open. It also doesn’t require you to go to the bank and you can make your transactions from any place using your smartphone.

• No Extra Charges- One of the great things about using mobile banking apps is that it is absolutely free. There are no hidden costs or charges that you need to worry about before getting and using a mobile banking app. You just need to download your bank’s app from the play store and then you can use it.

• Security- It is one of the most secure banking options available in today’s date. Using the app is said to be safer than internet banking. These apps have advanced encryption technologies that protect your data from any malware or outside interference. No data is downloaded or stored in either the phone or the SIM card.

• Varieties of Services- Mobile banking apps provide you with the accessibility to a variety of banking services. It lets you perform transactions, check the transaction history, gives you bill payment alerts, minimum balance alerts, debit or credit alerts and also provides account balance inquiry facility. The number of services you can have access to is also increasing with time as technology advances.

Therefore, having a mobile banking app is really a must in today’s time. You can enjoy lots of benefits and also save time by using these apps. It will provide you with a safe and free alternative to the traditional banking methods and will make your banking experience easier.

Reasons why you need an offshore bank account today

An offshore bank account is an account held by a resident of a country in a foreign land. This means that the account is not in your country of residence but is located in another country, generally having a low tax structure. The concept of having an offshore bank account gained popularity after the 1934 Swiss Banking Act. This act barred the bank employees or the bank authority in general from revealing details of any account holder to any government or agency. This urged the public to look into opening accounts in banks outside their own country to enjoy greater benefits. Following are the reasons why you should consider opening an offshore bank account immediately:

• Political Risk Dilution- One of the biggest threats to your savings can be the policies of your own government. The government may decide to increase bank deposit taxes like in Spain, or introduce capital controls like in Iceland. These measures can be taken up by the government to get more funds if they fail to meet their own financial requirements. Having offshore accounts reduces this risk as you can have savings outside your government jurisdiction.

• Currency Diversification- Offshore accounts can also act as a means to internationalize your savings. This means that you can hold your savings in foreign currencies in this type of accounts. It provides protection to your purchasing power and also diversifies your portfolio risk which is the risk related to each investment.

• High Interest Rates- The interest rates of all the commercial banks in a country are almost the same. There is not much variation among these interest rates. But if you decide to open an offshore bank account then your range of options increases multifold. You can then choose a bank provides you with higher interest rates.

• Secure Medical Care Abroad- Having an offshore account will ensure that you have access to your savings at all times. In case of medical emergencies where you may need to go abroad, it will save you the hassle of having to transfer funds from your home country for payment. You can easily use the savings in your offshore accounts for this purpose.

So, if you have one or more offshore accounts it will certainly prove beneficial for you in the long run. It will provide you benefits like high interest rates, save your savings from high tax rates and would also ensure medical and financial security in any case of emergency.

Do you know these secrets about Mutual Fund Investments?

Mutual funds are investment schemes that are professionally managed by banks or asset management companies. These companies or banks take deposits from the public and invest their money in bonds, shares and other securities. Investment in mutual funds is a great way to earn good returns in the long run. All mutual funds are registered with SEBI (Securities and Exchange Board of India) which is the regulatory body for securities market in India. There are many companies and banks that offer lucrative mutual funds investment schemes. However, there are some secrets about mutual fund investments that you must know before you invest your hard earned money in it:

• Truth about top performing funds- A common trend of investing or a common investment strategy followed by mutual funds investors is to invest in best performing funds. They tend to pick out the top bunch of funds looking at the past performance records and invest in those funds only. This is not an efficient strategy as the stock market is ever changing and every company suffers ups and downs. You should not invest in any fund solely on the basis of their previous records.

• Fund management charges- The truth about fund management charges is one fact about mutual fund investments that most investors are not aware of. The very low expense ratio of about one percent is one of the most misleading truths. Investors tend to think of it as one percent of the profit they earn when in reality it is one percent of their profits and their total investment capital. This makes up for a large sum of money that has to be paid as fees for managing mutual funds.

• Disguise of actively managed funds- Aggressive investors prefer to invest in actively managed funds based on their performance. Actively managed funds are costlier than index funds, that is, their fund management fees is a lot more as compared to index funds. However, these funds are nothing but index funds in disguise under fancy names. This leads to investors spending way more in fund management fees in comparison to the returns they get.

• ETFs are better- Exchange Traded Funds (ETF) have more liquidity than mutual funds. They can also be sold at real time rates at the stock exchange, that is, they can be traded at currently existing market prices. On the other hand mutual funds can only be bought or sold at closing NAV prices. This makes ETFs a better investment option than mutual fund investments.

These are some of the major secrets about mutual fund investments that most of the investors are unaware of. If you are well informed regarding the truth of these secrets it will prove to beneficial for you while investing in mutual funds.

How can an NRI benefit from the NRE account

In banking terminology, an NRE account stands for Non-Resident External account. It is an account meant for Indians who are not residents of the country, that is, the NRI. In India, NRIs cannot hold resident savings account as it is deemed illegal according to the regulations set up by FEMA. You can suffer huge penalties if you are an NRI and continue to use resident savings account. That is why you either need to convert your existing account into an NRE account or open a new NRE account. There are several benefits an NRI can enjoy from having an NRE account, such as:

Ease of opening account- It is very easy to open an NRE account. Anyone residing abroad can easily open it. You just need to fill up an application form online, take a printout of it and then courier it along with a self attested copy of all the required documents to the bank in India.

Investment of overseas earning- Having an NRE account allows you to invest your overseas earning in India. You can save your earnings in it and you can then invest them in India at a later point of time.
Joint Account- A key feature of this type account is that you can open it with another NRI as a joint holding account.

Repatriable funds- The funds accrued in an NRE account are repatriable. Both the principle and interest are fully repatriable.
High rate of interest- It gives you high interest rates on savings account as well as on fixed deposit accounts.

Tax benefits- There are no tax levied on the interest earned in NRE accounts. The interest earned on both savings account and fixed deposit accounts are not taxable. This is one of the major benefits of NRE accounts, and hence one of the biggest reason why you should open one if you are an NRI.

Low minimum balance- Another key feature of this type of account is the low minimum balance required to open an account. You do not need to deposit huge amounts as some banks allow you to open an NRE account with a deposit as low as ten thousand rupees.

So, if you are an NRI it is a good idea to have an NRE account. It can act as a place where you can deposit your overseas earning and get good interest on it without having to worry about taxes. It also provides you investment options and you can easily convert all your foreign earnings into domestic currency when you visit the country.

All you need to know about UPI Payment

UPI or Unified Payment Interface as it stands for, is an app or a payment system launched by National Payments Corporation of India (NPCI) that allows you to transfer money between any two bank accounts using your smartphone. The things that you need to know about this relatively new banking feature are as follows:

What can you do with it?
UPI is an app that allows you, the customer, to make payments from one bank account to both online and offline merchants. It saves you from going through the hassle of giving things like IFSC codes, net banking passwords, credit card details.

How to get it?
You can download the UPI app on your smartphone from the Google Play Store. At present, about twenty banks have launched their UPI apps on the Play Store.

What do you need to start using it?
To use this new feature launched by NPCI the first thing you need is a bank account. Then all you need to do is download the app on your smartphone from the Play Store and then install it. You need to set the app login, create a virtual address, add your bank account, set the M-pin and then you are ready to use it.

Is it safe?
UPI payment is a completely safe and secure mode of transaction as it shares only a virtual address created by you and does not provide any other sensitive information.

What transactions can you make using UPI?
You can use this feature of UPI payment to perform various transactions like bill payments, remittances, and merchant payments.

What is the transaction limit?
 You can make a money transfer up to Rs 1 lakh per transaction through UPI.

How to make a transaction?
The payment transaction using UPI is very simple. For the goods and services purchased online, you can make in–app payments. You just need to click on the buy option of any site or app and it will automatically trigger the link for UPI payment. Then you just need to verify the transaction details and enter a secure PIN to complete the transaction.

These are all the necessary information you need to know about UPI payment that was recently launched by the NPCI. It is a new feature in the sector of banking and making online payments in our country. It has not only made payment transactions easier but has also made it more secure and safe. You can now make UPI based payments in offline stores across the country instead of making cash payments.

What are the best investment options you can consider for a high returns?

The basic objective of investment is the need to obtain financial security. The general view of people is that they can earn more money if they work more. But you need to put in a lot of time and effort for gaining financial security if you are following this idea. This is where investment comes in. The concept of investment is to maximize your earning potential by making your money work for you. There are several investment plans that can help you get high returns. Some of the prominent and best investment options for high returns are:

• Mutual Funds- Investing in mutual funds is among the best investment plans that will give you high returns. It is a popular market choice that is guaranteed to give good returns in the long run. You can invest in mutual funds with an amount that is as low as five hundred rupees.

• Public Provident Funds (PPF) - It is one of the safest investment options that can give you good returns in the long run. Investing in PPF will lock your money for certain time duration in your PPF bank account or post office account but will provide you with tax free withdrawals.

• Company Fixed Deposits- Investing in Company FD schemes can be beneficial as it offers higher interest rates in comparison to bank FDs. You can use a fixed deposit calculator and plan your investment period accordingly.  It gives higher returns in the long run because once you invest in Company FD you are allowed to withdraw money from it only after the maturity period. This is why using an fd calculator before investing is a good idea.

• Real Estate- Investing in real estate is one of the best decisions you can make. It is a rapidly growing sector in the country. The biggest feature of this sector is the low risk of losing your capital as the rate of property tend to go up in very short periods of time.

• Shares or stocks- It is one of the most popular investment options. It gives high returns in a short period of time but also carry higher risks. You should research and analyze the stock or share if you plan on investing in it. Proper planning can yield high returns in long run.

• Post Office Schemes- It is a safe and secured investment scheme that can give you high returns. It has monthly income plans suitable for salaried employees and retired people with regular income. You can use fd calculators to know and plan your investment accordingly.

• Tax free bonds- Investing in tax free bonds is a good option for you if you are worried about taxes on high returns. It provides you good rates of return and you don’t have to worry about paying tax for it.
These are some of the best investment options that you can consider for high returns. You can opt for investing in any one of these options like real estate. You can also invest in multiple of these options like shares as well as Company FD using fixed deposit calculators to plan your investment properly and get high returns. Proper planning and a little bit of research before investment will ensure you good returns in the long run.